BMO has announced the decision of an early exercise of a Canadian lithium option “pursuant to the Binding Heads of Agreement (HOA) with the shareholders of Austek Resources”.
This is in order “to acquire three highly prospective lithium property packages located in Ontario, Canada”, writes the exploration minnow, noting the negotiation of “significantly more favourable acquisition terms” on the company’s behalf.
Under the revised terms, BMO will hand over 9 million shares @ 0.44c per share to a value of about ~$396,000, a 15% discount to the 15 day trading average.
This is significantly reduced from the calculated 24,447,824 shares that were to be issued to the vendors under the original terms of the HOA.
The three projects are the McCombe, McCombe North and Raleigh Lake project areas around the Root Raby lithium precinct.
