ASX-listed explorer Blaze Minerals (ASX:BLZ) has completed its final due diligence as part of its proposed acquisition of the North Spirit Lithium Project in the Great Lakes region of Ontario, Canada.
The company reports the initial consideration of 55 million BLZ shares is expected to be issued once shareholder approval is received in a meeting slated for 7 July 2023. Additionally, Blaze says field activity planning is well-advanced and remains unaffected by the recent bushfires in Canada.
On 26 May 2023, Blaze reported it had entered into a heads of agreement (HoA) with Toronto-based Exiro Minerals Corporation to acquire the North Spirit Lithium Project.
Under this agreement, Blaze will be required to pay CAD$50,000 and issue 55 million BLZ shares to Exiro at the completion of due diligence. On the first anniversary of the HoA, Blaze will pay a further CAD$200,000 and issue an additional CAD$500,000 worth of BLZ shares to Exiro as part of its stage one consideration.
This will be followed by a further 3 consideration payments totalling CAD$950,000 in cash and CAD$4 million in BLZ shares until the fourth anniversary of the HoA.
Additionally, Blaze will pay a further CAD$500,000 and issue CAD$500,000 worth of BLZ shares to Exiro, subject to shareholder approval, once a positive Scoping Study is complete at the project.
Moreover, once a Bankable Feasibility Study (BFS) is complete for North Spirit, the company will pay a further $1 million in cash and issue CAD$1 million worth of BLZ shares to Exiro, also subject to shareholder approval. Under the agreement, Exiro will also be granted a 2% net smelter royalty (NSR) on all minerals produced at the project.
The North Spirit Lithium Project covers about 365km-square within Ontario’s ‘Electric Avenue’ in the Red Lake Region in Canada
The North Spirit Lithium Project covers about 365km-square within Ontario’s ‘Electric Avenue’ in the Red Lake Region in Canada. The project is located 30km along strike to the southeast from Frontier Lithium’s (TSXV:FL) ‘world-class’ PAK and Spark Lithium projects.
Blaze Minerals is an ASX-listed explorer that holds a base metals exploration project in the Earaheedy Basin of Western Australia and a gold exploration project in the Murchison region of Western Australia.
On 26 May 2023, the company received firm commitments to raise up to $2 million in a placement to fund the acquisition of the North Spirit Lithium Project.
Write to Harry Mulholland at Mining.com.au
Images: Blaze Minerals Ltd