TSX-V-listed LithiumBank Resources on Monday announced a definitive agreement to sell its three lithium brine projects in Saskatchewan to Pristine Lithium for cash and shares.
Pristine Lithium would buy the Estevan, Kindersley and South projects for C$2-million in cash, 40-million shares and 20-million warrants.
Upon filing a preliminary economic assessment, Pristine Lithium will pay LithiumBank a further C$1-million, either in cash or shares.
Further, Pristine Lithium would complete a concurrent best efforts private placement at a price per security of at least $0.30 for aggregate gross proceeds of at least C$9-million.
“The strategic sale of our Saskatchewan assets to Pristine Lithium will expedite the unlocking of our Saskatchewan properties'' true potential while allowing LithiumBank to maintain a level of ownership of these assets,” explains CEO Rob Shewchuk.
He said LithiumBank was now well positioned to focus on the development of Boardwalk and Park Place, in Alberta, without the expense and share dilution related to developing multiple projects in two jurisdictions.
Using the non-dilutive capital from the asset sale, over the next 12 months LithiumBank expects to fund pilot plant studies on both Boardwalk and Park Place. The company will also focus on capturing the near-term PEA enhancement opportunities.
The sale of the assets is expected to make Pristine Lithium the second-biggest permitholder in Saskatchewan with 336 595 acres of mineral permits across three separate property areas.
“With this transaction, we are excited to be taking the first step towards creating a leading lithium brine developer based in Saskatchewan,” commented Pristine Lithium CEO Nikolas Matysek.
“The Pristine team has the in-province experience and focus to rapidly advance our foundational assets. We are appreciative of LithiumBank’s support as Pristine advances the projects with a fully funded and dedicated management team, strong local connections, and access to direct lithium extraction technology.”