Pegmatite enters option deal to buy Frazer Lake-Mound PEGMATITE ONE LITHIUM AND GOLD ANNOUNCES OPTION AGREEMENT AND PRIVATE PLACEMENT
Pegmatite One Lithium and Gold Corp. has entered into an option agreement dated June 28, 2023, with an arm's-length party, whereby the company has been granted the option to acquire a 100-per-cent interest in the Frazer Lake-Mound property, located in Ontario, Canada.
The Frazer Lake-Mound property comprises 279 unpatented single cell mining claims located in the townships of Cockeram, Church, McIvor, Adamson, Purdom and Oskawe Lake Area, Thunder Bay mining division, Ontario, Canada.
The increasing worldwide need for lithium, fuelled by the surge in green energy initiatives and the rapid expansion of electric vehicles, presents an enticing investment opportunity in the acquisition of the Frazer Lake-Mound property. This acquisition holds the potential to establish the company as a key player in the burgeoning lithium market, presenting substantial prospects for growth.
Transaction details
Pursuant to the agreement, the company may acquire a 100-per-cent interest in the property by paying a total of $250,000 to the optionor and issuing an aggregate of ten million common shares and seven million warrants, according to the following schedule:
Pursuant to the agreement, the company will acquire the interest in the property by paying the optionor a total cash consideration of $250,001 as follows: (i) $1 on June 28, 2028, and (ii) $250,000 on or before June 28, 2024. In addition, pursuant to the agreement, the company will issue the optionor seven million warrants on or before July 5, 2023, each warrant will entitle the holder to acquire one common share of the company at a price of five cents per PGA share until June 28, 2025. Finally, pursuant to the agreement, the company will issue the optionor 20 million PGA shares on or before June 28, 2024.
The company will grant the optionor a royalty of 2.0 per cent of net smelter returns from minerals mined and removed from the property, of which the company may purchase 1.0 per cent at any time by paying a total of $1.5-million to the optionor.
Private placement
In addition, the company is pleased to announce that it intends to complete a non-brokered private placement for aggregate gross proceeds of up to $500,000, through the issuance of up to 10 million units of the company, at a price of five cents per unit. Each unit will comprise (i) one Pegmatite share; and (ii) one-half of one warrant. Each whole warrant will entitle the holder to acquire one Pegmatite share at 10 cents for a period of 12 months following issuance. The net proceeds from the offering will be used for SG&A (selling, general and administrative), marketing, and development. All of the securities issued in connection with the offering are subject to a hold period of four months plus one day from the date of closing pursuant to applicable securities laws.
About Pegmatite One Lithium and Gold Corp.
Pegmatite One is a publicly traded company exploring for lithium and gold. The company is committed to responsible mining practices and operates two mining properties in Northwestern Ontario and on Vancouver Island. The Morrison River property consists of 222 claims and 335 cell claim units in the Morrison River area, Muskrat Dam Lake, Northwestern Ontario. The Morrison River property is Pegmatite One's flagship lithium asset; the company sees its potential lithium production to be part of the world's continued shift toward electric vehicles and green technologies. The Georgina property, a gold prospect located in the Nanaimo mining division, Vancouver Island, B.C., consists of one mineral claim covering an area of 2,069 hectares.