Scientific Metals Enters Agreement to Acquire Deep Valley Lithium Property, Canada
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Scientific Metals Corp. has entered into an arm’s length agreement with a private company to acquire the Deep Valley Lithium Property which is located in the Fox Creek - Sturgeon Lake area of west-central Alberta. The property encompasses 6,648 ha (16,427 acres) and is located approximately 55 km due west of the community of Fox Creek.
The property is underlain by Leduc Formation aquifers that are known to be highly enriched in lithium, potassium, boron, bromine and other commodities. Within the central part of the property, historic samples of formation waters (brines) have returned 140 mg/L (ppm), which are among the highest values recorded within the Province of Alberta as reported by the ERCB in a report from October 2011.
Commonly, during the early history of oil wells in the area, there is a high oil-to-water extraction ratio. However, at present, most wells produce excessive amounts of formation water in comparison to petroleum. The formation water is treated as a waste product during the petroleum extraction process, after which the brine is re-injected into the subsurface. The level of extractability of lithium and other elements from the waste formation water is unclear and may require new technologies (some of which are being introduced and tested in Nevada brines). This may or may not result in the extraction of all or any portion of those elements which are present in anomalous concentrations.
“We are pleased to acquire a project with some of the highest known lithium in formation waters within Alberta. The project area is surrounded by several other explorers with projects that range from early stage exploration (such as MGX Minerals Inc.) to those with reported resources such as Canadian International Minerals Inc. This emerging Canadian lithium camp could potentially play an important role in supplying high-demand materials for the emerging green energy market. The entry into Alberta provides the company and our shareholders a chance to explore for lithium in a cost effective manner. Testing brines from existing wells with the potential to produce from these existing wells would eliminate much of the cost centers associated with traditional exploration methods in other basins. We look forward to providing updates on our exploration plans,” said Michelle Gahagan, president of Scientific Metals.
The terms of the proposed transaction are as follows: Scientific Metals shall acquire a 100 percent interest in the property in consideration for a cash payment of $15,000 and the issuance of 4,000,000 common shares of the company. An existing 3 percent net smelter royalty shall remain on the property, of which 1 percent can be repurchased by the company at any time in consideration for a cash payment of $1,500,000. An arm’s length finder’s fee is payable in connection with the transaction in the amount equal to $38,625, such finder’s fee to be satisfied on the closing date by the issuance of 38,625 common shares of the company at a deemed price of $0.10 per share.
About Scientific Metals
Scientific Metals Corp. is a Canadian-based exploration company focused on the acquisition and development of production grade lithium deposits in North America.
To stop by Scientific Metals’ website, CLICK HERE
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