TSX-V-listed BlueBird Battery Metals has announced that it will buy a private Australian company that holds title to several tenements in the Eastern Goldfields region of Western Australia.
Buying Southern Lithium in an all-share deal gives Bluebird a foothold in the Yilgarn lithium province, where several significant lithium oxide discoveries have been made, including Greenbushes, Mt Caitlin, Earl Grey, Bald Hill, Mt Kathleen and Buldania.
The Southern Lithium project consists of nine granted exploration licences, three exploration licence applications and a granted prospecting licence with a total land area of 664 km2. Pegmatite swarms have been identified throughout the assembled tenements.
“We are excited by the scope of the opportunity before us. The district has been proven to host large-scale lithium mineralisation associated with pegmatite structures. Several pegmatite targets have been mapped within the assembled tenements, none of which have been evaluated for lithium. That opportunity, combined with the well-established infrastructure throughout Western Australia, provides for a particularly compelling value proposition,” said Bluebird CEO Nav Dhaliwal.
Bluebird will acquire Southern Lithium by issuing shares valued at $2.5-million, based on a deemed issue price a share equal to the average 30-day volume-weighted average share price of the company on the TSX-V.
If the company delineates an inferred resource of at least 15-million tonnes at a grade of more than than 1% lithium oxide (Li2O) from the Southern Lithium project, an additional $1.5-million will be issued and should it execute an offtake agreement for the sale of at least 200 000 t of concentrate at 5% Li2O or more, or at least 500 000 t of ore at .2% Li2O, an additional $1-million shares will be issued.