- Western Troy (WRY) pivots to lithium via an investment in lithium focused Li3 Resources Inc
- The agreement suggests that it will acquire 500 common shares in the capital of Li3 for US$600 per Li3 share
- The company will hold fifty percent (50 per cent) of the outstanding Li3 shares
- The Mutare Lithium Project is the first of several targeted lithium acquisitions by Li3
- Li3 will have until December 31, 2022, to invest in the spending to exercise the option to acquire the 50 per cent interest in the Mutare Lithium Project
- Western Troy Capital Resources Inc. (WRY) is up at a massive 73.91 per cent increase on the day, trading at C$0.20 at 10:39 am ET
Western Troy Capital Resources (WRY) has entered into an equity subscription agreement with Li3 Resources Inc.
Under the terms of the agreement, Western Troy will acquire 500 common shares in the capital of Li3 for US$600 per Li3 share for a subscription price of US$300,000.
Upon issuance of the Li3 shares, the company will hold fifty percent (50 per cent) of the outstanding Li3 shares.
Li3 is a private, lithium-focused exploration company founded and backed by senior mining executives who have had prior success in the lithium sector.
Li3 recently agreed to acquire up to a 50 per cent interest in the Zimbabwe Mutare Lithium Project from London AIM-listed Premier African Minerals Limited.
The Mutare Lithium Project is the first of several targeted lithium acquisitions by Li3.
Li3’s corporate plan is to acquire an attractive portfolio of highly prospective lithium exploration projects worldwide.
Li3’s senior management has successfully executed similar transactions during their past 30-plus-year history in the mining sector.
Li3 Resources has agreed to invest US$250,000 into the Mutare Lithium Project for ongoing exploration works, environmental and technical studies and any administrative expenses.
Li3 will have until December 31, 2022, to invest in the spending to exercise the option to acquire the 50 per cent interest in the Mutare Lithium Project.
Premier originally acquired the Mutare Lithium Project from Lithium Consolidated Ltd on July 28, 2020. The 1,500 hectares of licences are retained within the Mutare Greenstone Belt, located close to the eastern border with Mozambique.
Based on prior target generation work, the area was deemed prospective for LCT-type pegmatites.
Stephen Dunn, the CEO, commented, “The investment in Li3 represents a first lithium investment us and a key milestone in the company’s strategy to diversify into lithium and other battery metals. Li3’s Mutare Lithium Project is located in a region in Zimbabwe that is receiving significant interest in lithium and potential gold deposits.”
“The claim blocks are well located and have already attracted interest from international lithium producers in several instances,” added Dunn.
Western Troy has been engaged in mineral exploration and mine development and reviewing potential alternatives to enhance shareholder value.
Western Troy Capital Resources Inc. (WRY) is up at a massive 73.91 per cent increase on the day, trading at C$0.20 at 10:39 am ET.
