- Silk Road Energy (SLK) has signed an option agreement to acquire a 100-per-cent interest in the Doran-South Lithium Property
- Granite intrusives with fertile geochemistry were observed by the Ontario Geological Survey (OGS) adjacent to the boundary fault neighbouring the Doran property
- Consequently, Silk Road is launching a non-brokered private placement of common share units at a price of $0.05 per unit for gross proceeds of up to $500,000
- Silk Road Energy Inc. is engaged in the exploration, development, and production of petroleum and natural gas assets in Alberta
- Silk Road Energy Inc. was unchanged at $0.035 at 1:35 PM ET
Silk Road Energy (SLK) has signed an option agreement to acquire a 100-per-cent interest in the Doran-South Lithium Property.
The property is located about 200 km east of Red Lake in northwestern Ontario and contiguous with Doran Lithium Property it recently optioned.
Granite intrusives with fertile geochemistry were observed by the Ontario Geological Survey (OGS) adjacent to the boundary fault neighbouring the Doran property. These intrusives are often associated with lithium-bearing pegmatite.
“Doran-South is a natural complement to the Doran Lithium Property and is strategically located,” said Michael Judson, Chairman and CEO.
“High lithium content in lake-bottom sediments, second-order structures and mineralization is found on the same trend as the Doran property,” he added.
The area surrounding the Doran-South and the Doran Lithium properties was explored by the OGS for its potential to host significant lithium deposits.
As it had at the Doran Property, the OGS discovered at the Doran-South Property elevated levels of lithium oxide in lake-bottom sediment samples. The OGS considered this a positive criterion for the presence of lithium mineralization in the area.
Doran-South Lithium Property consists of about 1,820 hectares. This is in addition to the company’s first lithium property acquisition, the Doran Lithium Property, which Silk Road is acquiring by issuing 900,000 shares at a deemed price of 0.06 per share, and by making cash payments over the next three years for a total of $111,000.
Silk Road is acquiring the Doran-South Lithium Property by issuing 1,000,000 shares at a deemed price of $0.06 per share and by making cash payments of $50,000 over the next year.
Silk Road Energy will act as the sole operator of the project. The vendor will hold a 1.5 per cent net smelter royalty (NSR) on the property that can be purchased by Silk Road for $3 million.
Consequently, Silk Road is launching a non-brokered private placement of common share units at a price of $0.05 per unit for gross proceeds of up to $500,000. Each unit will consist of one common share of the company and one half common share purchase warrant.
Each warrant will entitle the holder to acquire a common share at $0.10 per common share for twenty-four months following the issuance of warrants.
The company plans to use the net proceeds from the issue and sale of the common shares for working capital and general and administrative expenses. The private placement is expected to close on or about January 31, 2023.
Silk Road Energy Inc. is engaged in the exploration, development, and production of petroleum and natural gas assets in Alberta.
Silk Road Energy Inc. was unchanged at $0.035 at 1:35 PM ET.