Snow Lake Resources, a Canadian lithium development company, has announced its plans to further expand its lithium portfolio with the acquisition of a majority stake in a group of mineral claims in western Ontario. The company has entered into an option agreement with Manitoba-based Manco to purchase a 90% undivided interest in claims located in the Muskrat Dam Lake area, near the Manitoba border.
The agreement entails various forms of consideration from Snow Lake Resources, including a cash payment of 50,000 Canadian dollars ($), the issuance of 500,000 Snow Lake shares, and 2 million warrants to purchase shares at a price of $1.50 per share. Upon exercising the option, Manco will be entitled to a 2% net smelter return.
Snow Lake Resources is currently focused on two hard-rock lithium projects in the Snow Lake region of northern Manitoba: the Thompson Brothers and Grass River projects. In December, the company signed a binding letter of intent with ACME Lithium to acquire a 90% stake in a group of mineral claims in southern Manitoba.
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