Collective Metals announced on Wednesday its agreement to acquire a lithium property in Ontario for a total consideration of 1.2 million Canadian dollars ($906,858). The Whitemud project, located near Ear Falls, consists of 381 single cell mining claims covering a vast area of 7,775 hectares.
The chosen property is strategically situated in an area known for its abundant lithium deposits. Furthermore, it is adjacent to Collective Metal’s Landings Lake property, making it an even more valuable addition to their portfolio.
In order to finalize the acquisition, Collective Metals will issue 4 million common shares to the vendors. This will represent 11.3% of the company’s outstanding common shares. The price per share will be C$0.31, which reflects the closing price on Tuesday.
Excited about the venture, Chief Executive Christopher Huggins stated, “To date, the project has been underexplored and we look forward to beginning work on the property as soon as possible. Our team believes that the Project shows great promise, and Northwestern Ontario has shown it is emerging as a potential lithium hub.”
This acquisition marks an important move for Collective Metals as they expand their presence in the lucrative lithium market. As more developments unfold, the company remains committed to unlocking the full potential of their latest addition in Ontario.
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