VANCOUVER: Scotch Creek Ventures Inc. has entered into an agreement to acquire two substantial lithium properties in the Clayton Valley, Nevada, a news release said.
The two projects, Highlands West and Macallan East, are located in the highly prospective district for lithium exploration and production, which is home to a number of publicly listed companies (Albemarle (NYSE:ALB)(“Albemarle”), Cypress Development Corp. (V:CYP), Noram Ventures Inc.(V:NRM), and Pure Energy Minerals Ltd (V:PE)).
Scotch Creek’s Highlands West project consists of 176 20-acre placer claims and is located nearby Albermarle’s Silver Peak mine, which is currently the only lithium producing operation in the United States.
With expanded interest in electrical vehicles, Albermale recently announced plans to invest an additional $30 m. to $50 m. to double its current production at this site by 2025 and begin a program to both evaluate clays and to optimize lithium extraction from its brine resources.
The Company’s Macallan East project borders on Pure Energy Minerals Ltd Clayton Valley property, which has had successful drill results and has recently announced its intention to begin construction of a pilot plant for lithium brine extraction.
The Macallen East acquisition consists of 157 20-acre claims and is located on the southeast side of the Clayton Valley Recent exploration on the north-east flank of the Clayton Valley from Noram Ventures Inc. and Cypress Minerals Corp. have yielded attractive results, thus reinforcing the geological trend line and exploration potential running through these claims.
When combined with the Highlands West project, this brings the total number of acquired claims in the Clayton Valley to 333 (or approximately 6,660 acres) and will establish Scotch Creek as one of the largest stakeholders within the Clayton Valley.
Scotch Creek’s CEO, Mr. David Ryan, commented, “we are excited to introduce our presence in North America’s prime lithium producing district and believe that through these acquisitions, we can establish Scotch Creek as a significant lithium player.
These two properties will be a substantial addition to our portfolio and represent an unencumbered, highly prospective exploration project ideal for those looking to take advantage of the exponentially growing lithium market.”
Under the terms of the agreement the Company will issue 3,000,000 shares at a deemed price of $0.56 to the shareholders of Macallen Exploration Corp. for 100% ownership of the claims. The agreement is subject to the completion of due diligence within 30 days, and to complete a 43-101, and regulatory approval. The shares will be subject to a four month hold from the date of issue under the rules of the CSE. The issuance of the shares will not result in a change of control or create a new insider of the Company.
Lithium demand has been soaring during past years and this demand has been expected to more than double by 2024 according to GlobalData. This increased demand is substantially driven with increased market penetration of electric vehicles, with the International Energy Agency expecting 120 million electric vehicles on the roads by 2030.
Scotch Creek’s two new properties Highlands West and Macallan East establishes the company as one of the major stakeholders within North America’s most exciting and prolific jurisdiction for lithium exploration and production.
Scotch Creek is a mineral exploration company, focused on the acquisition, exploration, and development of mineral projects located in tier-one North American mining jurisdictions. In Nevada Scotch Creek’s Cupz project is located in the prolific Walker Lane Mineral Belt and lies within the historic Goldfield-Cuprite district.
Lane Mineral Belt and lies within the historic Goldfield-Cuprite district.
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