MMG Completes Acquisition of Scotty Lithium Project, Nevada
Perth, June 9, 2022 AEST (ABN Newswire) - Monger Gold Limited (
ASX:MMG) is pleased to confirm that it has now completed the acquisition of 80% of the fully paid ordinary shares and options in the capital of American Consolidated Lithium (ACL) as approved by shareholders on 31 May 2022 (refer to ASX announcement dated 3 May 2022 for further information). ACL holds the rights to acquire a 100% interest in 700 unpatented placer mining claims covering approximately 14,000 acres in Nye County, southern Nevada known as the Scotty Lithium Project.
The acquisition of ACL provides Monger with immediate exposure to a large and strategically located lithium asset in the world-class mining jurisdiction of Nevada, USA. Monger's Scotty Lithium Project is situated immediately alongside and potentially along strike from one of North America's largest lithium deposits. The asset also sits just 70km away from the USA's only operating lithium mine and 330km away from Tesla's Nevada Gigafactory (Figure 1*).
The acquisition also provides Monger with direct access to ACL's team which has in-depth knowledge of, and experience operating in, the North American minerals exploration sector.
Monger's clear strategy is to become a leading supplier of lithium to the North American downstream battery industry. To assist in fulfilling this vision, the Company is currently undertaking a search for a CEO with experience in the lithium sector.
Monger will now embark upon an aggressive exploration program with the aim of delineating a maiden JORC Resource at the Scotty Lithium Project. Monger has engaged contractors to conduct a comprehensive soil sampling program across the entirety of the Scotty Lithium Project which is expected to commence this month, ahead of a maiden drilling campaign aimed at delineating a maiden JORC Resource at the Scotty Lithium Project. Further details will be announced shortly.
Commenting on the acquisition, Monger's Chairman, Mr Peretz Schapiro said, "This acquisition is truly transformational for Monger and underpins our strategy and vision of becoming a leading supplier of lithium to the North American downstream battery industry.
Through the development of the Scotty Lithium Project as well as through continuing to seek out value accretive acquisitions we are well placed to execute on this vision.
We are now well funded with circa $4.75 million in the bank and are excited to begin exploration activities at the Scotty Lithium Project. We look forward to keeping the market updated on our progress."
Completion of Capital Raising
As announced on 3 May 2022, the Company has now completed a placement raising $1.76 million through the issue of 7.04 million new fully paid ordinary shares at $0.25 per share (Placement Shares) (collectively, the Placement). The Placement Shares were issued to sophisticated and professional investors. The issue of the Placement Shares was subject to and conditional upon shareholder approval for the Placement and completion of the acquisition. The Placement Shares rank equally with existing fully paid ordinary shares in the Company. No fees or option payments were paid to third parties in relation to the Placement.
Monger is now fully funded to undertake its exploration activities with circa $4.75 million in cash on hand following completion of the Placement.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/BA6S0ANZ
About Loyal Lithium Limited
Loyal Lithium Limited (ASX:LLI) is a well-structured listed resource exploration company with projects in Tier 1 North American mining jurisdictions in the James Bay Lithium District in Quebec, Canada and Nevada, USA. Through the systematic exploration of its projects, the Company aims to delineate JORC compliant resources, creating value for its shareholders.
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