UTAH – Vancouver-based Lithium Energy Products
announced that it entered into a binding letter of intention with American Strategic Minerals to acquire 100% of its assets, including the Lost Sheep fluorite mine in Juab County, Utah.
In a press release, LEP explained that this arm's length acquisition will include 51 claims of U.S. federal land, and 640 acres of state land, covering a total land area of approximately 670 hectares. The company will also inherit a series of land packages that American Strategic Minerals began staking a while ago, as well as its working plant, mining equipment, and the bagging and processing fluorite facility.
“In a recent release, fluorite was identified by the U.S. government as one of its top 35 minerals that it deems crucial to the economy and national security. The mineral is principally used in the production of steel. According to the U.S.G.S., the U.S. currently buys predominantly from Mexico, South Africa, and Vietnam. China is also suffering a significant shortage of fluorite for use in their steel industry, giving the company a lot of blue-sky potential in the two largest steel producing markets,” the Canadian junior said in its media statement justifying the purchase.
James Walker, CEO of Lithium Energy Products, said that his firm intends to upgrade Lost Sheep’s equipment, its plant, and increase the labour force. “There is a customer base in place, with requests for orders already established, and a large steel market capable of utilizing all the fluorite the mine can produce,” he said in the press brief.
Under the terms of the LOI, the Vancouver miner will have to create a special purpose subsidiary that will amalgamate with the vendor to complete a change of control RTO.
Prior to the completion of such amalgamation, LEP will issue ASM one LEP common share for every two ASM common shares. In addition, it will have to issue AMS a half warrant for every LEP share issued to ASM, priced at $0.16.
If the negotiation moves forward, the Canadian firm will have to issue 14,195,145 shares to ASM and 7,097,573 warrants, which means that after the transaction, the individual ASM shareholders are expected to collectively represent 51.74% of LEP's total common shareholders.
This story first appeared on www.Mining.com.