ACME Lithium (ACME) has signed a term sheet with Lithium Royalty Corporation (LRC), a battery metals royalty and streaming company, for US$3 million.
ACME will receive US$650,000 through granting project royalties on its Manitoba lithium assets and US$2,350,000 from a non-brokered private placement.
The transaction is expected to close by March 17.
LRC will purchase a two per cent gross overriding royalty on lithium or other metals for ACME’s Euclid-Cat Lake and Shatford Lake projects in Manitoba.
ACME will be issue 3,179,500 units at $0.94 per unit to LRC.
Each unit will consist of one common share and half of one common share purchase warrant.
Each whole warrant will entitle the holder to purchase one additional common share for two years at a price of $1.22.
ACME will use the gross proceeds for exploration at its 100 per cent owned Cat-Euclid and Shatford Lake lithium projects in Manitoba, its Clayton Valley and Fish Lake Valley projects in Nevada and general working capital purposes
ACME holds 27 claims totalling approximately 11,803 acres located in the Bird River Greenstone Belt in Manitoba.
ACME Lithium Inc. (ACME) is up 1.02 per cent and is trading at $0.99 per share as of 12:30 p.m. EST.