Rapid Lithium (ASX:RLL), formerly known as Armada Metals, has entered into a binding term sheet to acquire Patriot Lithium’s (ASX:PAT) subsidiary New Energy.
New Energy is a mineral explorer and developer focused on hard rock lithium projects. The company owns the Black Hills, Keystone, and Tinton West projects in the US.
Under the agreement, Rapid Lithium will issue Patriot Lithium 59.36 million ordinary shares, which will be subject to voluntary escrow restrictions for 12 months from the date of issue.
Rapid Lithium, which has a market capitalisation of $7.32 million, says the transaction complements a recent acquisition of Midwest Lithium and its core focus on exploration of hard-rock lithium assets in the US.
Managing Director Martin Holland says this acquisition positions the company as a strategic landholder in South Dakota, US.
“Following the recent presidential victory announcement, the company anticipates that holding strategic lithium assets within the United States will be increasingly valuable,” Holland says.
The transaction’s completion is subject to Rapid Lithium completing legal, financial, tax, and technical due diligence enquiries and obtaining all necessary regulatory and third-party approvals.
Both companies will also negotiate and execute formal long form agreements to fully record the terms of the proposed transaction.
The Keystone Project, which is centred around the town of Keystone, 26km southwest of Rapid City in South Dakota. The project covers 413 unpatented claims of lithium-prospective land within the Black Hills province.
Meanwhile, the Tinton West Project sits along the state line between South Dakota and Wyoming. The project covers 123 unpatented claims of the Tinton Inlier.
Patriot Lithium is a mineral explorer focused on battery metals which owns the Gorman Lithium Project in North America.
Rapid Lithium is a junior explorer, poised to enhance its role in the lithium supply chain.
Write to Aaliyah Rogan at Mining.com.au
Images: Patriot Lithium
