ACME Lithium Inc. has entered into a term sheet with Lithium Royalty Corporation (“LRC”), a leading battery metals royalty and streaming company. Upon closing, ACME will receive US$650,000 from the grant of project royalties on its Manitoba lithium assets and US$2,350,000 by way of non-brokered private placement (the “Private Placement”). Total funding to ACME is US$3 Million or approximately CN$3,815,400. The closing of the transaction outlined in the term sheet is subject to final due diligence and definitive documentation and is expected to close on or before March 17th, 2022.
LRC will purchase a 2% Gross Overriding Royalty on lithium or other metals over ACME’s Euclid-Cat Lake and Shatford Lake projects located in south east Manitoba, with proceeds to be directed to exploration on those properties.
LRC will subscribe for a non-brokered private placement through the issuance of 3,179,500 units (the “Units”) at CN$0.94 per Unit. Each Unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share for two years at a price of CN$1.22. All securities that are issued pursuant to the Private Placement with be subject to, among other things, a hold period of four months and one day in accordance to applicable Canadian securities laws.
ACME will use the gross proceeds of the Private Placement for exploration at its 100% owned Cat-Euclid and Shatford Lake lithium projects in south east Manitoba and its Clayton Valley and Fish Lake Valley, Nevada projects, as well as general working capital purposes.
ACME holds 27 claims totaling approximately 11,803 acres strategically situated in the pegmatite fields of the Bird River Greenstone Belt (BRGB) in southeastern Manitoba, Canada.
