Cruz Battery Metals Closes the Central Clayton Valley Lithium Brine Project Acquisition

Rhea-AI Summary

Cruz Battery Metals (CSE: CRUZ) (OTC: BKTPF) has completed the acquisition of the 580-acre Central Clayton Valley Lithium Brine Project in Nevada, USA. The project consists of 29 claims surrounded by SLB's Clayton Valley lithium brine project, expanding Cruz's lithium brine footprint to 820 acres in the region.

The acquisition was completed through a purchase agreement with two arm's-length parties, requiring a cash payment of $115,000 for BLM fees and staking costs, along with the issuance of 7 million shares subject to a four-month hold period.

The announcement highlights positive EV market trends, noting that China's new energy vehicle sales exceeded 50% of passenger car sales, with a 52.3% penetration rate in November. Additionally, GM reported a 50% increase in EV sales for Q4 and a 125% increase for the year, becoming the second-largest EV seller in the U.S. during H2 2024.

Positive

• Acquired 580-acre lithium brine project in strategic Clayton Valley location
• Total lithium brine footprint expanded to 820 acres
• Project surrounded by SLB's operational lithium extraction facility
• Located in area with proven lithium carbonate production capability

Negative

• Cash expenditure of $115,000 required for acquisition
• Share dilution through issuance of 7 million new shares

Vancouver, British Columbia--(Newsfile Corp. - January 22, 2025) - Cruz Battery Metals Corp. (CSE: CRUZ) (OTC Pink: BKTPF) (FSE: A40YSN) (the "Company" or "Cruz") announces that further to its news release dated January 10, 2025, it has closed a purchase agreement with two arm's-length parties to acquire a 100% interest in the 580-acre 'Central Clayton Valley Lithium Brine Project' located in the heart of Clayton Valley in Esmeralda County, Nevada, USA. This new project consists of 29 claims completely surrounded by SLB's (formerly Schlumberger Limited) Clayton Valley lithium brine project. Cruz now has a footprint of 820 acres prospective for lithium brine in Clayton Valley, Nevada.

Clayton Valley Ownership Map

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4754/238004_2b28c1d824223bb7_002full.jpg

James Nelson, President of Cruz, commented "We are pleased to close the acquisition of the 'Central Clayton Valley Lithium Brine Project' which has access to the deepest parts of the Clayton Valley lithium brine basin and are completely surrounded by SLB's (formerly Schlumberger) claims. We feel that the timing of this acquisition aligns well with a shift from ferociously negative sentiment around lithium and EV's over the last two years, towards a more positive outlook. The recent data clearly shows that EV sales are increasing and the momentum for EV sales globally is in fact strengthening, not weakening. We feel domestically sourced lithium projects in 2025 will garner significantly more market interest than the previous two years. Management is excited to enter a period of increased corporate activity in 2025 and the potential growth this year may bring for Cruz shareholders."

According to a CNBC article dated January 2, 2025, China's push to develop its own electric cars hit a tipping point in July, with the share of new energy vehicles sold accounted for more than half all passenger cars sold that month, according to the passenger car association. New energy vehicles include battery-only and hybrid-powered cars. The trend persisted through November, which saw a penetration rate of 52.3%, according to association data.

On January 3, 2025, GM announced that for the fourth quarter, sales were up 21% from the year-earlier period. Electric vehicle sales jumped 50% for the quarter and 125% for the year, roughly doubling our market share over the course of the year. GM was the #2 seller of EVs in the U.S. across the second half of 2024.

Announced on September 11, 2024, Pure Energy Minerals Ltd.'s partner, SLB, has now completed a comprehensive technology demonstration and testing program as required to earn-in to the company's 100-per-cent-owned Clayton Valley lithium brine project (CV project) in Esmeralda County, Nevada.

Pure Energy and SLB formed a partnership in May 2019, which provides for SLB to design, permit, develop and build a state-of-the-art pilot plant for direct lithium extraction (DLE) of lithium brines from the Clayton Valley property. The sustainable lithium demonstration plant, operated by SLB, currently is producing lithium carbonate (Li2CO3) product, a direct component of lithium batteries in mobile phones, electric vehicles and energy storage.

SLB has demonstrated completion of specific technical milestones to qualify the earn-in to 100-per-cent ownership of the CV project, which includes continuous production of lithium carbonate for an extended period and achieving a material quantity of lithium product in excess of a required purity threshold, which was verified by a third party.

Pursuant to the terms of the purchase agreement, Cruz has acquired a one-hundred-percent interest in the 'Central Clayton Valley Lithium Brine Project', by paying one hundred fifteen thousand dollars in cash, which covers BLM fees and staking costs, and issuing seven million shares that carry a four-month hold.

Qualified Person

The technical contents of this release were reviewed and approved by Frank Bain, PGeo, a director of the Company and qualified person as defined by National Instrument 43-101.

About Cruz Battery Metals Corp.

Cruz currently has several battery metals focused projects located in the USA. Cruz's Nevada lithium projects consist of the 4,938-acre 'Solar Lithium Project', the 240-acre 'Clayton Valley Lithium Brine Project', and the recently acquired 580-acre 'Central Clayton Valley Lithium Brine Project'. Cruz also has the 124-acre 'Idaho Cobalt Belt Project'. Management cautions that past results or discoveries on properties in proximity to Cruz may not necessarily be indicative of the presence of mineralization on the Company's properties.

If you would like to be added to Cruz's news distribution list, please send your email address to info@cruzbatterymetals.com

Cruz Battery Metals Corp.

"James Nelson"

James Nelson
President, Chief Executive Officer, Secretary and Director

For more information regarding this news release, please contact:
James Nelson, CEO and Director
T: 604-899-9150
Toll free: 1-855-599-9150
E: info@cruzbatterymetals.com
W: www.cruzbatterymetals.com
Twitter: @CruzBattMetals

The CSE has neither approved nor disapproved of the contents of this press release.

References:

https://www.cnbc.com/2025/01/02/chinas-electric-car-boom-is-increasingly-more-about-hybrids.html

https://investor.gm.com/news-releases/news-release-details/gm-posts-4-sales-growth-2024-market-share-keeps-expanding

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/238004

FAQ

What is the size of Cruz Battery Metals' new Central Clayton Valley Lithium Project acquisition (BKTPF)?

The new Central Clayton Valley Lithium Project acquisition consists of 580 acres with 29 claims, bringing Cruz's total lithium brine footprint in Clayton Valley to 820 acres.

What was the purchase price for Cruz Battery Metals' (BKTPF) Central Clayton Valley acquisition?

Cruz Battery Metals paid $115,000 in cash for BLM fees and staking costs, plus issued 7 million shares with a four-month hold period.

Who are the neighboring operators to Cruz Battery Metals' (BKTPF) new Clayton Valley project?

The project is completely surrounded by SLB's (formerly Schlumberger) Clayton Valley lithium brine project, which is currently producing lithium carbonate.

What is the strategic significance of Cruz Battery Metals' (BKTPF) Clayton Valley location?

The project provides access to the deepest parts of the Clayton Valley lithium brine basin and is adjacent to SLB's operational facility that is producing battery-grade lithium carbonate.