Lithium One-Norris Lithium merger sets stage for growth in Quebec, Ontario
Canadian exploration junior Lithium One Metals on Monday announced that it would acquire fellow junior Norris Lithium, with the combined entity set to benefit from the creation of a large land package in James Bay, Quebec, and an established presence in the rapidly emerging district of north-western Ontario.
The transaction will result in the addition of two lithium exploration projects totalling 4 500 ha in the Corvette lithium belt of James Bay, boosting Lithium One’s holding in the district to 20 750 ha.
Norris Lithium’s Highway property is immediately adjacent to Lithium One’s Ferrari property, which through the combination will grow to 9 000 ha. The combined company will have an overall lithium-prospective land position of 23 650 ha in Quebec.
In Ontario, Norris Lithium shareholders will gain exposure to a portfolio of lithium-prospective exploration properties totalling 26 259 ha, for an overall total of 49 791 ha within the combined entity, creating one of the biggest lithium property portfolios in Canada.
Both companies are already under way with plans for robust exploration campaigns in 2023. The merger will now allow for streamlined and cost-effective joint exploration programme, said Lithium One.
The company added that the follow-up to the previous pegmatite discoveries on the Highway property would be expanded to the contiguous Ferrari property.
Dale Ginn, current president, CEO and director of Norris Lithium, would be CEO of the combined company, while Nav Dhaliwal, current CEO and director of Lithium One, would be executive chairperson.
Lithium One will acquire all the issued and outstanding common shares of Norris Lithium on the basis of 0.672 common shares of Lithium One for each share of Norris Lithium held. The exchange ratio implies a consideration of C$0.29 a Norris Lithium share.
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