WOL owns the Peny Property, comprised of fifteen mineral claims totaling 3,204 hectares in the Snow Lake district in Manitoba, Canada.
Silverton Metals to acquire The Wholesome Organic Limited. (Credit: RitaE from Pixabay)
Silverton Metals is pleased to announce that it has entered into a letter of intent (the “Letter of Intent”) to acquire all of the issued and outstanding shares of The Wholesome Organic Limited (the “WOL”). WOL owns the Peny Property (the “Property”), comprised of fifteen mineral claims totaling 3,204 hectares in the Snow Lake district in Manitoba, Canada.
The Peny Property is located approximately 25 kilometres north-east of the town of Snow Lake, Manitoba. The Peny Property is prospective for Lithium Pegmatite and Volcanic Massive Sulphide (“VMS”) style mineralization which is known to occur in the local area.
The Property encompasses rocks belonging to the Churchill Province and comprises metamorphic and metasedimentary rocks; predominantly Felsic and Arkosic Gniess’s including arkose, arenite, and quartzite-derived gneiss and migmatite belonging to the Sickle Group, Missi Group and Sickle Metamorphic Suite. The Property is located adjacent to the formally producing Osborne Lake VMS Mine previously operated by the Hudson Bay Mining and Smelting Co, where historical workers report wallrock are intruded by coarse-grained, sheared pegmatite. While the limited historical work on the property indicates that mineralization may include copper and zinc, the Company intends to refocus the asset on the exploration of lithium, which has proven successful at neighbouring sites.
“Although we have significant silver assets in Mexico, we believe that diversifying our project portfolio to lithium-focused assets in Canada will add significant long term value for shareholders,” said Lowell Kamin, Chief Executive Officer and Director of Silverton. “We believe the demand for battery technology will test the limits of metals supply and drive a long-term structural shift in the lithium market – an opportunity we want to capture and integrate into our business strategy.”
Under the terms of the Letter of Intent, the Company has agreed to acquire all of the issued and outstanding shares of WOL and, in consideration of which, the Company will issue to the WOL shareholders a total of 13,000,000 common shares (the “Consideration Shares”) at a deemed price of $0.095 per share for total consideration of $1,235,000. Each of the Company and WOL have agreed to enter into a definitive agreement no later than July 31, 2022.
Closing of the acquisition is subject to the parties completing due diligence, the entering into a definitive agreement and the acceptance of the TSX Venture Exchange.
Source: Company Press Release