Winnipeg, Manitoba–(Newsfile Corp. – January 10, 2024) – Beyond Lithium Inc. (CSE: BY) (OTCQB: BYDMF) (the “Company” or “Beyond Lithium“) is pleased to announce that it has entered into a mineral property purchase agreement (the “Purchase Agreement“) with Patriot Lithium Limited (“Patriot“), an Australian based mineral exploration company listed on the Australian Stock Exchange (ASX:PAT), pursuant to which the Company will transfer to Patriot an undivided 100% interest in the 61 mining claims comprising the Company’s Borland East and Borland North projects located approximately 60 km northwest of Frontier Lithium’s PAK project in Northwest Ontario (the “Borland Claims“).
As consideration for the Borland Claims, Patriot will issue to Beyond Lithium on closing, 1,100,000 fully paid ordinary shares in the capital of Patriot, subject to certain contractual escrow requirements (the “Purchase Price Shares“). Additionally, Patriot shall pay Beyond Lithium a cash payment of C$2,500,000 for an initial mineral resource estimate filed or announced by Patriot declaring any JORC, NI 43-101, or SK-1300 compliant, as applicable, deposits or orebodies contained exclusively in any part of the Borland Claims exceeding 20 million metric tonnes of contained Li2O with an average grade equal to 1.0% Li2O or greater.
“We are pleased to announce the first of many expected transactions to maximize the value of our large lithium exploration portfolio in Ontario for the benefit of our shareholders. When looked at a price per hectare, this transaction values Beyond Lithium’s 198,000-hectare portfolio at $33 million,” commented Allan Frame, President and CEO of Beyond Lithium. “We adopted the project generator business model to maximize funds available for the exploration of our most advanced projects, while minimizing shareholder dilution. During our very successful 2023 exploration season, we generated significant amount of geological data on over 50 of our projects, making them attractive candidates for both companies which want to enter the lithium market or wish to consolidate existing land positions. These results will allow us to accelerate our deal-making activities.”
“The deal with Patriot Lithium is consistent with our priorities of partnering with reputable companies and retaining an interest in a potential lithium discovery, in this case in the form of milestone payments. The Borland Claims will form a part of a large and significant land package with better potential for development by Patriot Lithium.”
Completion of the transactions contemplated by the Purchase Agreement remains subject to certain conditions, including:
- completion of customary due diligence investigations to the satisfaction of Patriot;
- Patriot obtaining all necessary consents and approvals to issue the Purchase Price Shares;
- no material adverse change occurring with respect to Patriot;
- the Purchase Agreement not having been terminated; and
- standard closing conditions for transactions of this nature.
Beyond Lithium also announced that it has entered into a mineral property option agreement (the “Option Agreement“) with Extreme Exploration Inc. (the “Optionee“), pursuant to which the Company has granted the Optionee an exclusive option to acquire (the “Option“) an undivided 100% interest in its non-core Fabie Gold project located approximately 35 km northwest of Rouyn-Noranda, Quebec (the “Fabie Gold Project“). Extreme Exploration Inc. is a Vancouver based private exploration company.
The Fabie Gold Project is intended to serve as the Optionee’s qualifying property for a going public transaction to be carried out as an initial public offering, reverse takeover, or other transaction structure which results in the Optionee’s common shares becoming listed, or being exchanged for shares which are listed, on a recognized Canadian stock exchange (a “Going Public Transaction“).
Exercise of the Option by the Optionee is subject to the Optionee satisfying the following conditions:
| (a) | completing a Going Public Transaction within 18 months of the date of the Option Agreement (the “Effective Date“); | |
| (b) | issuing to the Company an aggregate of 1,000,000 common shares in the capital of the Optionee upon closing of the Going Public Transaction, subject to certain contractual escrow requirements; | |
| (c) | reimbursing the Optionor for its costs associated with the exploration of the Fabie Gold Project in the amount of C$150,000 cash as follows: | |
| (i) | $50,000 to be paid on the earlier of (A) 90 days from the Effective Date or (B) closing of the Optionee’s first debt or equity financing transaction completed following the Effective Date; | |
| (ii) | $100,000 to be paid on or prior to completion of the Going Public Transaction; and | |
| (d) | assuming the 1.0% net smelter return royalty obligation of the Company in respect of the Fabie Gold Project in favour of Reyna Silver Corp. upon exercise of the Option. | |
“The transaction with Extreme Exploration is in line with Beyond Lithium’s strategy of monetizing its non-core mineral property and developing a portfolio of marketable securities. Beyond Lithium will continue to concentrate on advancing its exploration on its lithium property portfolio in Ontario with a focus on its most advanced and promising projects. The combined cash and securities value of the two transactions announced today totals about C$575,000 in non-dilutive financing. We look forward to announcing other similar transactions,” concluded Mr. Frame.
About Beyond Lithium Inc.
Beyond Lithium Inc. is the largest greenfield lithium exploration player in Ontario with 63 high potential lithium properties totalling over 195,000 hectares. The Company has adopted the project generator business model to maximize funds available for exploration projects, while minimizing shareholder dilution. Beyond Lithium is advancing certain of its projects with its exploration team and will seek to option other properties to joint venture partners. Partnering on various projects will provide a source of non-dilutive working capital, partner-funded exploration, and long-term residual exposure to exploration success.
About Patriot Lithium Ltd (ASX: PAT)
Patriot Lithium Limited is primarily focused on the exploration of high-grade, hard rock lithium projects located in the highly prospective Archean Greenstone Belts in northwest Ontario, Canada and the prolific Black Hills lithium district of South Dakota and Wyoming.
Please follow @BeyondLithium on Twitter, Facebook, LinkedIn, Instagram and YouTube.
For more information, please refer to the Company’s website at www.BeyondLithium.ca
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding anticipated transactions, future capital expenditures, anticipated content, commencement and cost of exploration programs in respect of the Company’s projects and mineral properties, anticipated exploration program results from exploration activities, resources and/or reserves on the Company’s projects and mineral properties, and the anticipated business plans and timing of future activities of the Company, are forward-looking information. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Often, but not always, forward-looking information can be identified by words such as “pro forma”, “plans”, “expects”, “will”, “may”, “should”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”, “potential” or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. In stating the forward-looking information in this news release, the Company has applied several material assumptions, including without limitation, that market fundamentals will result in sustained precious and base metals demand and prices, the receipt of any necessary permits, licenses and regulatory approvals in connection with the future exploration of the Company’s properties, the availability of financing on suitable terms, and the Company’s ability to comply with environmental, health and safety laws.
Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the statements of forward-looking information. Such risks and other factors include, among others, statements as to the anticipated business plans and timing of future activities of the Company, the proposed expenditures for exploration work on its properties, the ability of the Company to obtain sufficient financing to fund its business activities and plans, delays in obtaining governmental and regulatory approvals (including of the Canadian Securities Exchange), permits or financing, changes in laws, regulations and policies affecting mining operations, risks relating to epidemics or pandemics, the Company’s limited operating history, currency fluctuations, title disputes or claims, environmental issues and liabilities, as well as those risk factors discussed in the Company’s prospectus dated February 23, 2022, its annual management’s discussion and analysis, and other filings of the Company with the Canadian securities regulatory authorities, copies of which can be found under the Company’s profile on the SEDAR+ website at www.sedarplus.ca.
Readers are cautioned not to place undue reliance on forward-looking information. The Company undertakes no obligation to update any of the forward-looking information in this news release except as otherwise required by law.
For further information, please contact:
Allan Frame
President and CEO
Tel: 403-470-8450
Email: allan.frame@beyondlithium.ca
Jason Frame
Manager of Communications
Tel: 587-225-2599
Email: jason.frame@beyondlithium.ca
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/193755
