Surge Battery Metals Inc. [NILI-TSXV; NILIF-OTCQB; DJ5C-FSE] entered into a property option agreement with Paul Lechler and John Van de Sand dated February 24, 2022, whereby the company may earn an undivided 80% interest in 16 mineral claims comprising 640 acres and located within Nevada’s San Emidio desert.
These lithium exploration claims, referred to as the Galt claim group, adjoin the company’s existing San Emidio desert lithium claims. The transaction is subject to TSX Venture Exchange approval.
The proposed consideration for the undivided 80% interest in the Galt claim group is US$20,000 to be paid upon exchange approval; one million restricted shares of Surge to be issued upon exchange approval, which wiall vest and be released as follows: 25% released upon exchange approval and 25% released each three-month period thereafter; four million warrants of Surge to be issued upon exchange approval, with an exercise price of 30 cents per share for five years from exchange approval and vesting on the same schedule as the restricted shares; and US$10,000 each year on the anniversary of exchange approval of the transaction for five years.
Upon the company having exercised the option, Surge will have earned the undivided 80% interest in the property, and the parties will enter into a commercially reasonable and definitive joint venture agreement.
Recent mineral exploration on the Galt claim group includes 51 playa sediment samples collected for chemical analysis. Results of aqua regia leaching of the samples show 68 to 852 parts per million lithium (mean 365 ppm), 5.3 to 201 ppm cesium (mean 72 ppm) and 35 to 377 ppm rubidium (mean 180 ppm). Results from two seven-foot-deep auger holes show lithium, cesium and rubidium concentrations in the range of 143.5 to 773 ppm Li, 56.8 to 102.5 ppm Cs and 155 to 272 Rb.
Greg Reimer, Surge president and CEO, said: “The San Emidio desert project holds great lithium exploration potential due to the geothermal activity in the project area. It is the company’s intention to rapidly evaluate the lithium brine and lithium clay potential for its significant land position. Adding the Galt claim group is an important step in developing success for the overall project.”