International Metals acquires Brazil lithium option
International Metals Mining Corp. [IMM-TSXV, CYNXF-OTC, C2YD-FSE] has agreed to acquire Lithium Plus Mining Corp., a company that has the option to acquire a 65% stake in Brazilian mining claims that are located approximately 25 kilometres from Sigma Lithium’s [SGML-TSXV, NASDAQ] Grota do Cirilo mine.
Sigma is focused on powering the next generation of electric vehicles with environmentally sustainable and high purity lithium. The company recently announced the first production at Grota do Cirilo. The mine is located in northeastern Minas Gerais State, 450 kilometres northeast of Belo Horizonte.
Grota do Cirilo Project includes a state of the art, green-tech processing plant and represents one of the largest and highest-grade hard rock lithium spodumene deposits in the Americas.
Under a share exchange deal dated May 4, 2023, International Metals will issue 12 million common shares to Lithium Plus, which holds an option to acquire a 65% ownership interest on 12 claims, covering 21,136 hectares of surface area.
Under an option agreement between Lithium Plus and Spark Energy Minerals Inc. [EMIN-CSE], Lithium Plus can acquire the property under the following terms:
- Payment of $100,000 upon execution of the option agreement, and another $500,000 within 12 months, and $1 million in the second year. Once Lithium Plus has exercised the option, Spark Energy will retain a 1.0% net smelter royalty on the property.
- In the first year the option deal, Lithium Plus pledged to spend $500,000 on exploration and $1 million in the second year.
The optioned claims are also proximal to operations held by Lithium Ionic Corp. [LTH-TSX], and Atlas Lithium Corp. [ATLX-NASDAQ].
On May 5, 2023, International Metals shares closed at 10.5 cents and currently trade in a 52-week range of 40 cents and $0.07.
International Metals said it plans to conduct a satellite-based spectral analysis to determine areas of interest for targeted exploration. It will then mobilize an exploration team immediately to prospective areas to conduct initial groundwork, including grab and channel sampling, trenching and mapping.
“There will be a focus on identifying pegmatites across the claim blocks that have the potential for lithium-cesium-tantalum (LCT) mineralization, International Metals said in a press release.
International Metals has chosen to focus on lithium after recently changing its name from Gold State Resources Inc. When the company changed its name, it was engaged in exploration and development of properties in North America and Peru. At that time, the focused was on the Black Rock Canyon gold property in Battle Mountain, Nevada as well as the Jumping Jack gold project, which is located in in Nye County, Nevada, approximately 70 kilometres north of Tonopah.
However, the company said it has decided not to pursue the Jumping Jack option in order to focus on its strategic battery metal assets.