- Advance Lithium (AALI) has signed a $3.9 million agreement to acquire all of Wolfden Resources’ claims that make up the Tetagouche property in New Brunswick
- AALI agreed to issue 19.9 per cent (approximately 16.6 million) of its outstanding shares to Wolfden for $0.055 each
- AALI has to keep the property in good condition until it has spent $3 million on it
- After the complete payment has been made, Wolfden will have a right to maintain its ownership percentage in future financings down to 5.00 per cent
- Tetagouche property will be renamed the Bathurst Mining Camp project
- Advance Lithium (AALI) is down 9.09 per cent, trading at $0.05 per share as of 12:29 p.m. EST
Advance Lithium (AALI) has signed a $3.9 million agreement to acquire all of Wolfden Resources’ claims that make up the Tetagouche property in New Brunswick.
AALI agreed to issue 19.9 per cent (approximately 16.6 million) of its outstanding shares to Wolfden for $0.055 each.
Furthermore, AALI is required to keep the property in good condition until it has spent $3 million in property expenses. In order to do so, the company will pay $250,000 to Wolfden, made up of cash or shares, on every anniversary of the agreement until $3 million has been spent on the property.
After the complete payment has been made, Wolfden will have a right to maintain its ownership percentage in future financings down to 5.00 per cent.
Also, Wolfden will have a first right of refusal if AALI decides to sell the property in full or in part and keep a 2.00 per cent net smelter royalty on available claims. AALI can buy back 1.00 per cent of certain claims’ royalty for $2 million.
Old mining camp to experience new tech
According to AALI, the Tetagouche property will be renamed the Bathurst Mining Camp project and covers 16,896 hectares located in northeastern New Brunswick.
“Many mining camps in Canada are going through a resurgence as modern exploration techniques and technology are being applied to make new discoveries including at the Bathurst Mining Camp,” Allan Barry Laboucan, President and CEO of AALI, said.
“With historic resources, a multitude of metal showings and close proximity to producing mines, this package represents a huge opportunity for a major discovery.”
However, the agreement is still subject to regulatory approvals.
Advance Lithium (AALI) is down 9.09 per cent, trading at $0.05 per share as of 12:29 p.m. EST.