ACME Lithium Announces Amendment to Option Agreement with Eagle Battery Metals for Fish Lake Valley Nevada Lithium Project

Rhea-AI Summary

ACME Lithium announced an amendment to its option agreement with Eagle Battery Metals (EBM) for the Fish Lake Valley lithium project in Nevada. The amendment grants EBM extra time to make required payments and incur exploration costs. The project includes 207 lode mining claims over 4,139 acres. EBM can acquire a 100% interest in the project by paying a total of $1,495,000, issuing $3,300,000 worth of shares, and spending $500,000 on exploration within 12 months. EBM must follow a payment schedule, with specific payments tied to milestones such as US listing and production start. ACME retains a 1% Net Smelter Returns royalty, which EBM can buy down for $1,000,000 or $2,000,000 before production begins.

Positive

• EBM receives extended time to fulfill financial and exploration commitments, aiding project continuity.
• The amended agreement specifies a clear timeline and financial structure, providing transparency.
• ACME stands to gain $1,495,000 in cash and $3,300,000 in shares if the option is exercised.
• ACME retains a 1% NSR royalty, ensuring future revenue from production.
• The detailed payment schedule aligns payments with key project milestones, potentially reducing risk.

Negative

• ACME may face delays in receiving full financial benefits due to the extended time frame.
• The project's success is contingent on EBM meeting financial and exploration commitments.
• ACME's revenues are tied to EBM's ability to commercialize the property, introducing uncertainty.
• There is a risk of EBM opting out before commercial production, which could affect ACME’s financial projections.

Carson City, Nevada--(Newsfile Corp. - June 14, 2024) - ACME Lithium Inc. (CSE: ACME) (OTCQB: ACLHF) (the "Company", or "ACME") announced today it has signed an amendment to its option agreement dated January 23rd, 2024 with Eagle Battery Metals Corp. ("EBM"), pursuant to which ACME will grant EBM the sole exclusive option to acquire the 100% undivided interest (subject to a retained royalty) in the mineral claims held by ACME at its Fish Lake Valley lithium project, located in Esmerelda County, Nevada. In consideration for receiving $20,000, the amendment gives EBM additional time to make certain cash payments and incur exploration expenditures.

ACME's Fish Lake Valley lithium project is comprised of 207 lode mining claims totaling approximately 4,139 acres located in Esmerelda County, Nevada. To the east, the property neighbors Ioneer's Rhyolite Ridge world class Lithium-Boron Project.

EBM can exercise the option by paying a total of USD$1,495,000, issuing shares of EBM worth an aggregate of USD$3,300,000, and incurring a total of USD$500,000 in exploration and development expenditures over a 12-month period commencing from the date of the Amending Agreement.

Date for Completion	Cash Payment ($US)	Exploration and Development Expenditures	Shares
			(value, USD)
Initial Payment (paid)	$50,000
Amendment Payment	$20,000
Second Payment (December 14, 2024)	$100,000
June 14, 2025		$500,000
Upon US Listing	$450,000		$675,000
Third Payment (12 Months from Listing)	$375,000		$1,312,500
Fourth Payment (24 Months from Listing)	$500,000		$1,312,500
Resource over 6Mt LCE1	$500,000		$3,000,000

 

1. Lithium carbonate equivalent.

Should EBM begin commercial production on any part of the Property, it will pay ACME a royalty calculated at 1.0% of the Net Smelter Returns (NSR). In addition, all proceeds from metals or commodities produced prior to EBM exercising the option or before commercial production commences will be paid to ACME. EBM has the right, at any time prior to commencing commercial production from the Fish Lake Valley Project, to purchase one-half of the NSR from ACME in consideration for a one-time cash payment of USD$1,000,000, or alternatively, to purchase the whole NSR from ACME in consideration for a one-time cash payment of USD$2,000,000.

ABOUT EBM

Eagle Battery Metals is a private lithium exploration and development company with an office in Reno Nevada.

About ACME Lithium Inc.

ACME Lithium is a mineral exploration company focused on acquiring, exploring, and developing battery metal projects in partnership with leading technology and commodity companies in North America. ACME is advancing and developing a lithium brine resource at Clayton Valley, Nevada and has entered into strategic exploration agreements with leading partners at its Fish Lake Valley, Nevada lithium claystone project, and a group of projects in the pegmatite region of Shatford, Birse and Cat-Euclid Lakes in southeastern Manitoba. Backed by strategic investors and led by an experienced management team, the building blocks of the future are our focus today.

On behalf of the Board of Directors

Steve Hanson
Chief Executive Officer, President and Director
Telephone: (604) 564-9045
info@acmelithium.com

For Investor Inquiries:
Anthony Simone
Simone Capital
Telephone: (416) 881-5154
asimone@simonecapital.ca

Neither the CSE nor its regulations service providers accept responsibility for the adequacy or accuracy of this news release. This news release contains certain statements which may constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur and in this news release include but are not limited to the attributes of, timing for and expected benefits to be derived from exploration, drilling or development at ACME's project properties. Information inferred from the interpretation of drilling, sampling and other technical results may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. ACME's project location adjacent to or nearby lithium projects does not guarantee exploration success or that mineral resources or reserves will be defined on ACME's properties. Exploration, development, and activities conducted by regional companies provide assistance and additional data for exploration work being completed by ACME. There is no assurance EBM will exercise the option to acquire the Fish Lake Valley property. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in metal prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from the Company's operations and other risks and uncertainties. Any forward-looking statement speaks only as of the date it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Unless otherwise indicated, the market and industry data contained herein is based upon information from industry and other publications and the knowledge and experience of management. While we believe that this data is reliable, market and industry data is subject to variations and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties inherent in any statistical survey. We have not independently verified any of the data from third-party sources referred to in this news release or ascertained the underlying assumptions relied upon by such sources. All technical and scientific disclosure pertaining to our mineral property interests in this news release have been reviewed by a Qualified Person, meaning an individual who is an engineer or geoscientist with at least five years of experience in mineral exploration, mine development or operation or mineral project assessment, or any combination of these; has experience relevant to the subject matter of the mineral project and the technical report; and is a member or licensee in good standing of a professional association.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/212993

FAQ

What did ACME Lithium announce on June 14, 2024?

ACME Lithium announced an amendment to its option agreement with Eagle Battery Metals for the Fish Lake Valley lithium project.

What is the stock symbol for ACME Lithium?

The stock symbol for ACME Lithium is ACLHF.

What are the financial commitments required from Eagle Battery Metals under the amended agreement?

EBM needs to pay $1,495,000 in cash, issue $3,300,000 in shares, and incur $500,000 in exploration expenses over 12 months.

What is the total area of the Fish Lake Valley lithium project?

The Fish Lake Valley lithium project covers approximately 4,139 acres.

What is the royalty structure mentioned in the amended agreement?

ACME retains a 1% Net Smelter Returns royalty, which EBM can buy down for $1,000,000 or $2,000,000.

What are the key payment milestones under the amended agreement?

Key milestones include a $100,000 payment by December 14, 2024, $500,000 in exploration costs by June 14, 2025, and subsequent payments upon US listing and production.

Can Eagle Battery Metals opt out of the agreement before commercial production?

Yes, EBM can opt out before commercial production, affecting ACME's revenue projections.