- Gold Tree Resources (GTX) has signed a binding letter of intent with 1314836 BC (BCCo) with respect to a proposed transaction
- Gold Tree will acquire all of the issued and outstanding securities of BCCo by way of a share exchange agreement
- Gold Tree will issue common shares to the BCCo shareholders
- BCCo’s key asset is its wholly-owned subsidiary Lithium Valley Holdings Corp., which owns the McDermitt Lithium Property located in Nevada, USA
- Gold Tree Resources Ltd. is a Canada-based exploration company focused on the development of gold projects
- Gold Tree Resources Ltd opened the day’s trading at $0.25
Gold Tree Resources (GTX) has signed a binding letter of intent (LOI) with 1314836 BC Ltd.
Gold Tree will acquire all of the issued and outstanding securities of BCCo by way of a share exchange agreement.
BCCo’s key asset is its wholly-owned subsidiary Lithium Valley Holdings Corp., which owns the McDermitt Lithium Property in Nevada, USA.
The property comprises 315 lode claims located in Humboldt County, Nevada, USA. The project is underlain by intera-caldera tuffaceous sediments of the McDermitt Caldera, commonly referred to as “moat sediments,” which are known to host elevated lithium values.
The equivalent sedimentary unit is host to the McDermitt Deposit owned by Jindalee Resources Limited and the Thacker Pass deposit owned by Lithium Americas Corp.
Gold Tree sees the potential for the property to host large-scale, long-life sources of lithium, occurring near-surface and falling within the lower end of the global cost curve.
Additionally, the project is located in a mining friendly jurisdiction with significant domestic lithium demand currently satisfied by imported material.
The company also recognizes the opportunity to rapidly advance the project through the exploration stage to create significant value for the company.
In accordance with the proposed transaction, Gold Tree will issue common shares in its capital (the consideration shares) to the holders of common shares in the capital of BCCo.
These shares will be issued at a deemed price per consideration share with the maximum discount to the market that is allowed in line with the policies of the Canadian Securities Exchange, representing aggregate consideration to be determined and mutually agreed upon by the parties concerning a pending assessment report of BCCo.
The company and BCCo have agreed to negotiate in good faith the terms of a definitive agreement with respect to the proposed transaction within 30 days from the LOI.
Gold Tree Resources Ltd. is a Canadian-based exploration company focused on developing gold projects within prolific placer gold camps by seeking to identify the large-scale source areas of the placer gold.
Gold Tree Resources Ltd opened the day’s trading at $0.25.