ExGen Finalizes Acquisition of Spark North Lithium Project
Deal News | Mar 14, 2025 | Globenewswire
ExGen Resources Inc., based in Vancouver, has successfully completed the acquisition of the Spark North lithium project located in Elko County, Nevada. This project spans 111 claims across approximately 2300 acres with significant potential for lithium discovery. The transaction was finalized through a purchase agreement negotiated in January 2025, requiring a cash payment of CAD$250,000 and the issuance of 5,000,000 common shares to the selling company. Moreover, ExGen agreed to a 1.5% NSR agreement, with an option to buy back half at a future date. ExGen's business model focuses on risk mitigation through strategic joint ventures, intending to build a diversified portfolio across different commodity groups at various exploration stages. The Spark North acquisition aligns with ExGen's strategy to leverage partnerships while maintaining a stream of potential cash flow from new ventures. Despite the positive acquisition, the company acknowledges risks tied to exploration, market conditions, and regulatory approvals.
Sectors
- Mining and Exploration
- Natural Resources
Geography
- United States – The Spark North lithium project is located in Elko County, Nevada, USA.
- Canada – ExGen Resources Inc. is a Canadian company based in Vancouver, British Columbia.
Industry
- Mining and Exploration – The article discusses the acquisition of a lithium project, which falls under the mining and exploration industry.
- Natural Resources – The focus on lithium, a valuable natural resource, aligns with the natural resources industry classification.
Financials
- CAD$250,000 – Cash consideration paid by ExGen for the acquisition of the Spark North lithium project.
- 5,000,000 shares – Common shares issued to the Vendor as part of the acquisition payment.
- 1.5% NSR – Net Smelter Royalty granted to the Vendor with an option for ExGen to re-purchase 0.75% for CAD$1,000,000.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ExGen Resources Inc. | Acquirer | Company | A project accelerator focused on exploring and developing natural resource projects through strategic joint ventures. |
| Private Company | Vendor | Company | The unnamed arm's length private company that sold the Spark North lithium project to ExGen. |
| TSX Venture Exchange | Regulatory Body | Company | The exchange where ExGen's acquisition required final approval. |