- Monger Gold (MMG) completes the acquisition of a majority stake in American Consolidated Lithium (ACL), which holds the rights to the Scotty lithium project in Nevada, USA
- The first phase is the 80 per cent acquisition of ACL through the issue of eight million shares at 25 cents each, along with four million options exercisable at 30 cents and expiring on July 6, 2024
- The acquisition is part of Monger’s venture into lithium exploration and is the first step in the company’s strategy to become a leading supplier of lithium to the North American downstream battery industry
- Monger says it is fully funded with approximately $4.75 million in the bank and planned to begin planned exploration with the aim of delineating the project’s maiden JORC resource
- Shares in Monger are down 10 per cent, trading at 27 cents as of 1:13 pm AEST
Monger Gold (MMG) has completed the acquisition of a majority stake in American Consolidated Lithium (ACL), which holds the rights to the Scotty lithium project in Nevada, USA.
The first phase will see the company acquire 80 per cent of ACL through the issue of eight million shares at 25 cents each, along with four million options exercisable at 30 cents and expiring on July 6, 2024.
The acquisition is part of Monger’s venture into lithium exploration and will give the company a large and strategically located lithium asset to work with on its way to becoming a supplier of lithium to the North American downstream battery industry.
The project is also situated 70 kilometres from the only producing lithium mine in the US and 330 kilometres from Tesla’s giga-factory.
Commenting on the acquisition, Chairman Peretz Schapiro said the deal is “truly transformational.”
“It underpins our strategy and vision of becoming a leading supplier of lithium to the North American downstream battery industry,” he said.
“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.”
The company has also completed its capital raising to help fund exploration activities at the project.
The company issued 7.04 million shares at 25 cents a piece, raising $1.76 million.
Monger said it is fully funded with approximately $4.75 million in the bank and planned to begin planned exploration with the aim of delineating the project’s maiden JORC resource.
Contractors have been engaged to conduct a comprehensive soil sampling program across the project which is expected to commence this month.
Shares in Monger were down 10 per cent, trading at 27 cents as of 1:13 pm AEST.