ExGen Enters Binding LOI for Lithium Property Acquisition in Nevada

Deal News | Dec 05, 2024 | Globenewswire

ExGen Resources Inc., a project accelerator firm headquartered in Vancouver, has signed a binding letter of intent to acquire the Spark North lithium project in Elko County, Nevada. This acquisition involves the purchase of approximately 2300 acres of land from a private company. The property sits near Surge Battery Metals Inc.'s Nevada North Lithium Project, renowned for having the USA's highest grade lithium clay deposit. The acquisition will require ExGen to pay CAD $250,000 in cash and issue 5 million common shares to the vendor, as well as grant a 1.5% net smelter return royalty (with a buyback option for half for CAD $1,000,000). This transaction is pending approval from the TSX Venture Exchange and is conditional upon customary transaction completion terms. ExGen emphasizes that previous findings in adjacent properties do not guarantee similar resource discoveries on their new acquisition. The firm's strategy involves creating a diversified portfolio through joint ventures and partnerships, reducing technical and financial risks while maintaining upside potential. The acquisition reflects ExGen's strategic intent to expand its footprint in the evolving lithium sector.

Sectors

Mining
Renewable Energy

Geography

United States – The Spark North Project is located in Elko County, Nevada, indicating the geographical focal point of the article.
Canada – ExGen Resources Inc. is headquartered in Vancouver, British Columbia, which impacts their operations and corporate structure.

Industry

Mining – The acquisition pertains to the mining of lithium, a crucial mineral for battery production and electric vehicles.
Renewable Energy – The focus on lithium mining ties into the broader renewable energy sector given lithium's role in energy storage solutions.

Financials

CAD $250,000 – Cash payment to be made by ExGen to the Vendor.
5,000,000 common shares – Equity to be issued to the vendor as part of the acquisition terms.
1.5% NSR – Net smelter return royalty in favor of the Vendor, with a buyback option for 0.75% at CAD $1,000,000.

Participants

Name	Role	Type	Description
ExGen Resources Inc.	Bidding Company	Company	A project accelerator firm focusing on exploration and development of mineral resources through joint ventures.
The Vendor	Selling Company	Company	An arms-length private company selling the Spark North lithium project to ExGen.
Surge Battery Metals Inc.	Other Company	Company	Operates the adjacent Nevada North Lithium Project, providing context for ExGen's acquisition.
TSX Venture Exchange	Regulatory Body	Government	Approval body for the transaction presented between ExGen and the Vendor.
Kieran Downes	Qualified Person	Person	Reviewed and verified the technical details of the ExGen transaction.