Cruz Cobalt Corp. [CSE-CRUZ, OTC Pink-BKTPF, FSE-A2DMG8] has reported that it has entered into a share purchase agreement to acquire a drill ready lithium project in Nevada consisting of 155 contiguous claims totaling 3,100 acres prospective for lithium. Cruz management plans to immediately apply for a drill permit and expects to be drilling this project as soon as possible. Nevada is the go to address for North American lithium production and Cruz is extremely pleased to add this project to the Company’s existing lithium brine project in Clayton Valley, Nevada. Recently, investor interest in lithium stocks has taken a new leg higher as many lithium giants have traded at all-time highs this week.
Jim Nelson, President of Cruz states, “Cruz is in a unique position to potentially capitalize on both our cobalt and lithium assets. Not only does Cruz have cobalt projects in Ontario & Idaho, we also have a lithium project in the Clayton Valley of Nevada, being one of the few companies that have access to the deepest parts of the only lithium brine basin in production in North America. Recently, energy behemoth Schlumberger, through its strategic partnership with Pure Energy Ltd. began building a lithium brine pilot plant with approximately $30 million USD being spent in developments, directly bordering Cruz’s Clayton Valley lithium project. Cruz currently has approximately $1.5 million in the treasury, which enables the Company to start operations immediately. We are about to come into a major news flow cycle and management remains confident that 2021 will be a transformative year for the Company as Cruz has multiple strategically located, and ethically sourced, lithium and cobalt projects in North America.”
Cruz entered into an arm’s length Agreement with ‘Las Vegas Lithium Locators Corp.’ (LVLLC) to acquire all the issued and outstanding share capital of LVLLC. Pursuant to the terms of the Agreement, the Company has agreed to issue seven million common shares of the Company (each, a “Share”) at a deemed price of $0.07 per Share. This share issuance will not result in a change of control. LVLLC, through its wholly-owned subsidiary, owns a 100 per cent undivided, unencumbered legal and beneficial interest in the ‘Solar Lithium Project’ consisting of 155 contiguous claims totaling 3,100 acres in Nevada.
Cruz share price was at CAD$0.105 cents with volume of nearly 7m shares trading hands.