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LithiumBank Resources Announces Sale of Saskatchewan Projects to Pristine Lithium
CALGARY, Alberta, July 31, 2023 (GLOBE NEWSWIRE) -- LithiumBank Resources Corp. (TSX-V: LBNK) (OTCQX: LBNKF) (“LithiumBank” or the “Company”) is pleased to anno
About this update from Lithiumbank Resources Corp.
[{"type":"text","content":" CALGARY, Alberta, July 31, 2023 (GLOBE NEWSWIRE) -- LithiumBank Resources Corp. (TSX-V: LBNK) (OTCQX: LBNKF) (“LithiumBank” or the “Company”) is pleased to announce it has entered into a definitive asset purchase agreement (the “Agreement”) with Pristine Lithium Corp. (“Pristine Lithium” or the “Buyer”) whereby the Company will sell to the Buyer (the “Transaction”) the Company’s three lithium brine projects, Estevan, Kindersley and South (the “Assets”) located in Saskatchewan, Canada. In accordance with the terms of the Agreement, the Company will sell the Assets to the Buyer in exchange for: cash consideration of an aggregate of C$2,000,000 payable as a C$250,000 deposit within two days of the execution of the Agreement and an additional C$1,750,000 payable on closing of the transaction (the “Cash Consideration”); 40,000,000 common shares (the “Share Consideration”) in the capital of the Buyer (the “Buyer Shares”), which will represent approximately 47% of the outstanding Buyer Shares on a post-financing basis; 20,000,000 warrants, each exercisable into one Buyer Share for a period of two years from the date of issuance at an exercise price of $0.45 per Buyer Share (the “Warrants”) upon the occurrence of certain conditions; upon filing a “Preliminary Economic Assessment” (a “PEA”), as such term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) in respect of any of the Assets, the Buyer will, at its election, issue Buyer Shares to the Company with a fair market value of C$1,000,000 or pay the Company an additional C$1,000,000 in cash; and the right to appoint one member of the board of directors of the Buyer (the “Buyer Board”) if LithiumBank holds at least 20% of the Buyer Shares or one observer position to the Buyer Board if LithiumBank holds at least 10% of the Buyer Shares. The Share Consideration, the Warrants and any underlying Buyer Shares issuable upon the exercise thereof will be subject to a voluntary hold period from the date of issuance and will be released in instalments in accordance with the Agreement, with the final release occurring on the 24-month anniversary of the closing date of the Transaction. The end of the voluntary hold period will coincide with the final share release. Pristine Lithium will also complete a concurrent best efforts private pl...