Surge Battery Metals acquires an 80% option on the San Emidio Lithium Project in Nevada from elko nevada’s lithium corporation.
Surge Battery Metals Inc. (the “Company”, “Optionee” or “Surge”) (TSXV: NILI) (OTCQB: NILIF) (FRA: DJ5C) announce that it has entered into an option agreement with Lithium Corporation (the “Optionor”) (OTCQB: LTUM) dated September 16, 2021 (the “Agreement”), whereby the Company may earn an undivided 80% interest, in the existing San Emidio Desert Lithium Project that consists of 35 mineral claims (of which 31 are staked and in the process of being formally recorded) comprising a total of 2800 acres located approximately 60 miles North East of Reno, Nevada, referred to as the “San Emidio Lithium Property”.
The Agreement with Lithium Corporation is an arms’ length transaction and is subject to TSX Venture Exchange (“Exchange”) approval.
Greg Reimer, Surge President and CEO.
This Agreement significantly adds to our lithium exploration portfolio in Nevada and we are looking forward to working with Lithium Corporation to further explore and develop this exciting Property.
The geologic setting combined with the presence of lithium in both active geothermal fluids and surface salts within the San Emidio Property match characteristics of lithium brine and clay deposits at Clayton Valley, Nevada and in South America.
Geothermal fluids adjoining the claims are known to contain anomalous lithium values and a recently completed surface silt sampling program have confirmed Li values in the area. Although geological work has been undertaken for geothermal energy production in the area, the lithium in brine and clay potential of the playa has not been specifically studied.
Initially, the lithium target in this basin was highly conceptual, however, recent exploration results are highly encouraging and warrant a detailed exploration drilling for a Clayton Valley type brine and clay deposit.
Pursuant to the terms of the Agreement, the Company may exercise the Property option as follows:
Cash Payments and Share Issuances
Make the cash payments and share issuances to the Optionor in the following manner:
(i) US$50,000 on signing the Agreement and issue 200,000 common shares on the Closing Date; and
(ii) US$70,000 and US$30,000 in common shares on or before the first anniversary of the Effective Date; and
(iii)US$70,000 and US$30,000 in common shares on or before the second anniversary of the Effective Date; and
(iv) US$70,000 and US$50,000 in common shares on or before third anniversary of the Effective Date; and
(v) US$70,000 and US$70,000 in common shares on or before the fourth anniversary of the Effective Date; and
(vi) US$70,000 and US$90,000 in common shares on or before the fifth anniversary of the Effective Date.
The shares issued under this Agreement shall be subject to resale restrictions which are required to be imposed on the shares of the Optionee issued to the Optionor hereunder, pursuant to applicable securities laws, including National Instrument 45–102 and the rules and policies of the Exchange.
Expenditure and Work Commitment
Incur a minimum in Expenditures for exploration and development work on the Property of US$1,000,000 as follows:
(i) US$100,000 of Expenditures to be incurred, or caused to be incurred, by the Optionee on the Property on or before the first anniversary of the Effective Date; and
(ii) a cumulative total of US$250,000 of Expenditures to be incurred, or caused to be incurred, by the Optionee on the Property on or before the second anniversary of the Effective Date; and
(iii)a cumulative total of US$450,000 of Expenditures to be incurred, or caused to be incurred, by the Optionee on the Property on or before the third anniversary of the Effective Date; and
(iv)a cumulative total of US$700,000 of Expenditures to be incurred, or caused to be incurred, by the Optionee on the Property on or before the fourth anniversary of the Effective Date; and
(v) a cumulative total of US$1,000,000 of Expenditures to be incurred, or caused to be incurred, by the Optionee on the Property on or before the fifth anniversary of the Effective Date.
Finder’s fees will be paid on behalf of the transaction in accordance with Exchange policies. Subject to Exchange Approval, Black Prince Advisors Ltd. will be paid a Finder’s Fee of CDN$24,500, which fee is to be paid by the issuance of 71,200 common shares of the Company.
Surge Battery Metals Acquires an 80% Option on the San Emidio Lithium Project in Nevada from Elko Nevada’s Lithium Corporation, VANCOUVER, BC, September 20, 2021
