Beyond Lithium (BY.CN) engages in the acquisition, development, and exploration of mineral property assets in Canada. The company primarily has a focus on Lithium, a commodity with great fundamentals given the increasing demand for Electric Vehicles. With 64 lithium properties in Ontario covering over 150,000 hectares, Beyond Lithium is the largest greenfield lithium exploration player in the Province.
Today, Beyond Lithium announced that it has entered into an option agreement with Bounty Gold Corp. and Last Resort Resources Ltd. to acquire 100% of the Victory Project (7,873 ha) and the Victory West Project (8,808 ha) together known as the Victory Project, situated in the Dryden-Ear Falls region of Ontario. The project is surrounded by excellent infrastructure including CP Rail, power lines and access via the Trans-Canada Highway.
In March 2023, Beyond Lithium entered into an option agreement with Bounty Gold and Last Resort for 57 projects. As part of that agreement, Beyond Lithium was granted a right-of-first refusal on future projects staked by Bounty Gold and Last Resort which gave rise to today’s new option agreement.
The Victory Project with its two new spodumene discoveries is located within 100 km of the Ear Falls Project (20,623 ha), where the Company recently announced high-grade grab samples up to 4.54% Li2O in a newly discovered spodumene-bearing pegmatite zone.
In addition to the Victory Project and the Ear Falls Project, Beyond Lithium continues to advance eight other projects (Satellite, Laval, Gullwing-tot, Webb East, Webb West, Temple Bay, Ogani Lake, and McKenzie Bay) located within 100 km of three regionally significant lithium deposits.
Beyond Lithium, in partnership with its team of renowned prospectors, now has generated two significant spodumene discoveries that it controls 100%. With the newly optioned ground, Beyond Lithium has a district-scale foothold (68,307 ha) in the Dryden-Ear Falls region which is emerging as a major lithium hub with a favourable geological setting for lithium, cesium, tantalum (“LCT”) pegmatites.
Allan Frame, President and CEO of Beyond Lithium, commented “In less than six months, Beyond Lithium has grown from a greenfield lithium exploration company to having a 100% interest in two significant spodumene discoveries plus the important discovery of the Allen Graeme LCT pegmatite intrusive stock in the Georgia Lake area. Exploration work is ongoing at multiple other properties, and we are anticipating continued success as more results get received and analyzed.”
“The spodumene discovery announced today was made by Jason Leblanc, Jace Angell and Kyle Brand, respectively with Bounty Gold, and Last Resort. Bounty Gold and Last Resort are large shareholders of our company as a result of the option deal we announced on March 31, 2023 when we optioned their lithium exploration portfolio in Ontario. We are pleased to see them increase their equity interest in our company.”
“Beyond Lithium now has fresh important discoveries across three lithium exploration projects in Ontario, the Ear Falls, the Victory, and the Cosgrave Lake Projects, along with several other highly prospective projects which we believe could bear fruit. We will continue with our 2023 exploration campaign till the weather permits and anticipate steady news flow over the next few months as we receive more results from Ear Falls, Cosgrave Lake, Victory, and other projects.”
Jason Leblanc, President of Bounty Gold, commented: “Back in March when we entered into our first option agreement with Beyond Lithium, I stated that Beyond Lithium’s strategy of focusing on high quality assets for which extensive geological data is available aligned perfectly with our staking methodology and it was the right company to now advance these projects forward and deliver exploration success. This newest spodumene discovery, along with that made earlier in the year on the Ear Falls Project, demonstrate the team’s ability to generate exploration success. We strongly believe the two new spodumene discoveries made this season are just the tip of the iceberg, and that more will follow in 2024 and beyond. Lastly, tip of the hat to prospector Kyle Brand of Last Resort Resources who made the initial spodumene discovery at the Victory Project.”
The transaction announced today was completed pursuant to the terms and conditions of an option agreement entered into by the Company, as optionee, with each of Bounty Gold Corp. and Last Resort Resources Ltd., as optionors, whereby Beyond Lithium will acquire a 100% interest in the Victory Project.
Pursuant to the Option Agreement, the Company will make cash payments to the optionors totaling up to $2,250,000 and issue to the optionors an aggregate of up to 6,875,000 common shares in the capital of the Company as follows:
- within 5 business days of the date of the Option Agreement, issuing 1,168,750 Shares;
- on or before December 31, 2023 by paying $382,500;
- on or before the first anniversary of the date of the Option Agreement, by paying $495,000 and issuing 1,512,500 Shares;
- on or before the second anniversary of the date of the Option Agreement, by paying $630,000 and issuing 1,925,000 Shares; and
- on or before the third anniversary of the date of the Option Agreement, by paying $742,500 and issuing 2,268,750 Shares.
Upon acquiring a 100% interest in the Victory Project, the Company shall grant the optionors a 2.0% net smelter return royalty on such project. In addition, the Company shall pay the Optionors a $1 million milestone payment for an initial mineral resource estimate filed by the Company in respect of a deposit comprising of the Victory Project that discloses a deposit or orebody exceeding 5 million metric tonnes with an average grade equal to 1.0% Li2O or greater and a $2 million milestone payment for a mineral resource estimate filed by the Company in respect of a deposit comprising of the Victory Project that discloses a deposit or orebody exceeding 20 million metric tonnes with an average grade equal to 1.0% Li2O.
In mid September, Beyond Lithium did close above the important resistance zone at $0.40. A break which would set us up for a test of the $0.45 zone if the momentum continued. Instead, sellers jumped in and profits were taken.
Technically, the uptrend is still in play and this move lower was just a correction in the current uptrend. We can say this because the higher low comes in at $0.275, just a bit below the $0.30 support zone. According to market structure analysis, as long as the recent higher low is held, the uptrend remains intact.
And look what happened. The stock did indeed see buyers step in pretty much at that higher low zone. The stock is now testing interim resistance here at $0.33. A close above would set us up to retest the $0.40 zone.
