Western Troy Capital Resources Inc. has announced it has entered into an equity subscription agreement (the “Investment Agreement“) with Li3 Resources Inc. dated April 25, 2022 whereby the Company will acquire 500 common shares (the “Li3 Shares“) in the capital of Li3 at a price of US$600 per Li3 Share for a subscription price of US$300,000. Upon issuance of the Li3 Shares, the Company will hold fifty percent (50%) of the outstanding Li3 Shares.
Li3 is a private, lithium focused exploration company founded and backed by senior mining executives who have had prior success in the lithium sector. Li3 recently entered into an agreement to acquire up to a 50% interest in the Zimbabwe Mutare Lithium Project (the “Mutare Lithium Project“) from London AIM-listed Premier African Minerals Limited (“Premier“). The Mutare Lithium Project is the first of a number of targeted lithium acquisitions by Li3. Li3’s corporate plan is to acquire an attractive portfolio of highly prospective lithium exploration projects worldwide. Li3’s senior management have successfully executed similar transactions during their past 30+ year history in the mining sector.
Li3 Resources has agreed to invest US$250,000 into the Mutare Lithium Project for ongoing exploration works, environmental and technical studies and any administrative expenses. Li3 will have until the December 31, 2022 to invest the Spend to exercise the option to acquire the 50% interest in the Mutare Lithium Project. Premier originally acquired the Mutare Lithium Project from Lithium Consolidated Ltd on July 28, 2020. The 1,500 hectares of licences are retained within the Mutare Greenstone Belt, located close to the eastern border with Mozambique. The area was deemed prospective for LCT-type pegmatites based on prior target generation work.
Stephen Dunn, Western Troy CEO, commented, “The investment in Li3 represents a first lithium investment for the Company and a key milestone in the Company’s strategy to diversify into lithium and other battery metals. Li3’s Mutare Lithium Project is located in a region in Zimbabwe that is receiving significant interest in both Lithium and potential gold deposits. The claim blocks are well located, and in several instances, have already attracted interest from international lithium producers. We are also currently evaluating other lithium investments worldwide.”