Gold Tree Resources Ltd. [GTX-CSE] has signed and closed a share purchase agreement dated July 7, 2022, with 1314836 B.C. Ltd. (BCCo) in respect of the company’s previously announced transaction, whereby the company has acquired all of the issued and outstanding shares of BCCo. BCCo’s principal asset and undertaking is its wholly owned subsidiary Lithium Valley Holdings Corp., which owns the McDermitt lithium property in Nevada, USA.
The property comprises 315 lode claims located in Humboldt County. The project is underlain by intracaldera tuffaceous sediments of the McDermitt caldera commonly referred to as moat sediments, which are known to host elevated lithium values. The equivalent sedimentary unit is host to the McDermitt deposit owned by Jindalee Resources Ltd. and the Thacker Pass deposit owned by Lithium Americas Corp.
Adrian Smith, CEO, commented, “We see the potential for the property to host large-scale, long-life sources of lithium, occurring near-surface and falling within the lower end of the global cost curve. The project is located in a mining friendly jurisdiction with significant domestic lithium demand that is currently satisfied by imported material. We also see the opportunity to rapidly advance the project through the exploration stage to create significant value for the company.”
Pursuant to the agreement, Gold Tree issued an aggregate of 3,000,000 common shares to the shareholders of BCCo at a deemed price per consideration share of $0.20, representing aggregate consideration of $600,000. The aggregate consideration paid under the transaction was based on a report to confirm the economic geology potential of the McDermitt lithium property owned by BCCo dated June 27, 2022, which was prepared by a professional geologist.
Adrian Smith, Gold Tree’s CEO further commented, “We see this as a strategic acquisition of a key North American property located within one of the most sought-after lithium basins in North America which already hosts two of the largest lithium deposits in the USA.”
Gold Tree Resources also owns 100% interest in the SkyGold Project in the British Columbia’s Cariboo Placer Gold Region, the highest producing placer gold camp in British Columbia, Canada.