Vancouver-based Fremont Gold has sold its US subsidiary, Lithuar, which owns its Nevada lithium assets, to a private Australia-based company for cash, a royalty and a best-efforts commitment to take the assets public by the end of October 2024.
The Australian company made a one-time cash payment to Fremont of $100 000, granted a 2% royalty on each of the four projects and assumed $125 000 of debt owed by Lithuar.
In terms of the going-public commitment, the Australian firm will pursue an initial public offering, reverse takeover or similar transaction on the Australian, or a Canadian, stock market by October 31, 2024, with a possible extension to April 2015, for an additional payment of $100 000 to Fremont.
Fremont will receive 30% of the publicly traded equity of the new company following its listing.
“We are looking forward to working with our new partners who will be fully focused on exploring for world-class lithium deposits in Nevada and elsewhere.
This transaction will provide Fremont shareholders with exposure to an important battery metals commodity in a proven jurisdiction without having to devote company resources going forward,” said president and CEO Dennis Moore.
Fremont staked the four projects using a model based on well-known lithium deposits in Nevada, which occur in enclosed internally-drained calderas, hosting permissive tuffaceous source rocks, nearby intrusive bodies as a heat source, and often hosting alkaline playa lakes.
These four localities were not previously recognised as being enclosed calderas prospective for lithium and initial sampling reveals elevated lithium values in attendant felsic source rocks.
“We regard these areas to be very prospective for both lithium-boron brines and lithium clay deposits,” said Moore.
SOURCE:miningweekly.com
