BEIJING (Asian Metal) 6 May 19 – On April 29, American Battery Metals Corp. announced it has entered into a non-binding letter of intent (the “LOI”) dated April 25, 2019 to acquire a 90% interest in E.U. Energy Corp., an Ontario company, and its 100%-owned Viken Project in Sweden (the “Proposed Transaction”).
The Viken Project located in Jamtland County, Sweden. The Project is host to a significant National Instrument 43-101 (“NI 43-101”) polymetallic Mineral Resource, representing an in-situ vanadium (V2O5) Mineral Resource of 163 million pounds in the Indicated classification and 16.7 billion pounds in the Inferred classification. The Project has seen a significant amount of work with a 2010 Preliminary Economic Assessment (PEA) outlining an open pit mine for vanadium, molybdenum and nickel; followed by a 2014 Updated PEA to evaluate the use of bio heap leaching. More recently, E.U. Energy has engaged P&E Mining Consultants Inc. to evaluate a more efficient footprint, lower CAPEX, vanadium-focused operation with the potential for significant by-product metal production.
Under the terms of the LOI, American Battery Metals would issue 20 million shares in exchange for 90% of the issued and outstanding shares of E.U. Energy, in addition to the right for E.U. Energy to nominate one member to the Board. The Proposed Transaction is subject to, but not limited to, a concurrent non-brokered private placement for CDN$1.5 million, a bridge loan to E.U. Energy, due diligence, finalization by both parties to enter into a definitive agreement, in addition to regulatory approvals.
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