ROK swaps Hub City Lithium stake for EMP shares
EMP Metals Corp. [EMPS-CSE, EMPPF-OTCQB] has struck a share exchange deal with ROK Resources Inc. [ROK-TSXV, ROKRF-OTCQB] whereby ROK will exchange its shares in Hub City Lithium Corp. in return for 17 million shares of EMP.
The move aims to consolidate ownership of Hub City Lithium, a private entity, which controls 200,000 acres of leased land, covering lithium properties (Mansur and Viewfield) in southeastern Saskatchewan targeting the Duperow formation.
Hub City is a joint venture held 75% by EMP and 25% by ROK Resources.
Its assets include 11,000 net hectares of land at Viewfield where a preliminary economic assessment (PEA) has outlined estimated production (282,090 tonnes) of battery-quality lithium carbonate equivalent (LCE) over a 23-year period. The PEA envisages average annual production of 12,175 tonnes.
Third party laboratory testing returned lithium concentrations in the Duperow formation of up to 259 mg/l, the highest lithium concentrations recorded to date in Canada.
As a result of the deal, EMP will own 100% of the issued and outstanding shares of Hub City Lithium, which wholly owns the Saskatchewan lithium properties.
“This is a key step in advancing the project and building shareholder value in EMP,’’ said EMP Metals CEO Rob Gamley. “Our Viewfield project continues to show itself to be a world-class lithium-from-brine project with the highest recorded lithium grades in Canada as a well as among the cleanest brines in North America,’’ he said.
Further ROK has entered into a management agreement with Hub City Lithium and EMP Metals, whereby ROK will continue to manage and administer the objectives (outlined below) in return for 1.84 million common shares of EMP, in renumeration for the one-year period. The management agreement is for a one- year period with an option to renew for an additional six months.
The objectives include investigating the lithium potential of existing core areas, recommending and targeting additional lithium properties, and making recommendations with respect to exploration, drilling and testing of wells or wellbores and if accepted by Hub City Lithium, conduct, manage and administer such exploration, drilling, testing and development activities.
Under the deal, ROK will exchange its 25 common shares of Hub City for 17 million common shares of EMP.
Upon closing, which is expected to occur by September 30, 2024, ROK will hold a 17.11% stake in EMP.
Further, post closing, EMP will appoint Bryden Wright, President and Chief Operating Officer of ROK, or such individual as ROK and EMP agree upon, to the board of directors of EMP.
EMP shares advanced on the news, rising 1.27% or $0.005 to 40 cents. The shares are currently trading in a 52-week range of 58 cents and 28 cents.
ROK shares were unchanged at 21 cents and currently trade in a 52-week range of 44.5 cents and 19 cents.