EMP Metals Strengthens Position with Hub City Lithium Acquisition
EMP Metals Completes Acquisition of Hub City Lithium Corp.
EMP Metals Corp. (CSE: EMPS, OTCQB: EMPPF) has successfully finalized its acquisition of 25 common shares of Hub City Lithium Corp. ("HCL") from ROK Resources Inc. ("ROK"). This strategic move positions EMP Metals to fully own HCL, including all its lithium assets, thereby strengthening its market presence in the lithium sector.
Details of the Acquisition
The acquisition forms part of a broader growth strategy for EMP Metals, allowing the company to own 100% of HCL's issued shares. This operation marks a substantial step towards expanding its lithium resource capabilities, leveraging the booming demand for lithium in electric vehicle batteries and renewable energy storage systems.
Investor Rights Agreement
In conjunction with this acquisition, EMP Metals has engaged in an investor rights agreement with Tembo Capital Holdings UK Ltd. To maintain Tembo's 19.98% interest prior to the acquisition closing, Tembo exercised its right to purchase 4,266,680 common shares at $0.30 each. This private placement will contribute approximately $1,280,004 to EMP Metals, aimed at funding the development of its lithium properties.
Financial Overview
The overall financial structure of the acquisition involved an aggregate purchase price of C$5,125,500, to be settled through the issuance of 17,085,000 common shares at a value of $0.30 per share. Additionally, EMP Metals will issue 1,840,000 Management Shares as part of a management agreement with ROK to facilitate ongoing exploration and development in the region.
Proceeds Utilization
Funds generated from the private placement will primarily be allocated to the development costs relating to the Saskatchewan lithium assets. This allocation is essential for continuing the operation and enhancing the value of these critical exploration assets.
Leadership Changes at EMP Metals
As part of the ongoing organizational adjustments, EMP Metals has appointed Mr. Karl Kottmeier as the new Chief Executive Officer. Kottmeier, who has been a director of EMP Metals since November 2023, brings a wealth of experience to the company's leadership. Mr. Gamley will continue his role as President, ensuring stability during this transition.
Future Governance Plans
Post-acquisition, EMP Metals plans to nominate Mr. Bryden Wright as a director. His expertise in operations, coupled with ROK's strategic input, is expected to drive the company towards achieving its exploration ambitions efficiently.
Overview of EMP Metals
EMP Metals is on a mission to explore and develop lithium resources in Canada. The company currently controls about 196,000 net acres across Southern Saskatchewan, focusing on large-scale extraction methods that promise to benefit from the increasing lithium market. Adopting Direct Lithium Extraction (DLE) technology enhances EMP's operational efficiency, making it a notable player in the lithium sector.
Frequently Asked Questions
What is the significance of the acquisition by EMP Metals?
The acquisition enhances EMP Metals' ownership of lithium assets, crucial for capitalizing on the growing demand for lithium in renewable energy technologies.
Who is the new CEO of EMP Metals?
Karl Kottmeier has been appointed as the new Chief Executive Officer, bringing valuable experience from his previous role on the board.
How will the proceeds from the share offering be used?
The proceeds will be allocated for the development costs of the Saskatchewan lithium properties as well as general working capital needs.
What is EMP Metals' strategic focus?
EMP Metals aims to explore and develop lithium resources utilizing advanced extraction techniques to meet market demands effectively.
Where can I find more information about EMP Metals?
For additional details, visit the EMP Metals website for comprehensive corporate information and updates on projects.
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