Reedy Lagoon Corp. Ltd. on Dec. 22 said it acquired a lithium brine project in Nevada.
The company will issue A$2 million worth of shares to the vendor after completing an entitlement offer. Adrian Griffin, a nonexecutive director at Reedy Lagoon, owns 25% of the vendor.
The project comprises applications for placer claims over three prospects in large basins interpreted from topographic and geophysical survey data.
The ASX-listed company is starting an independent valuation of the project to be presented at a shareholder meeting in 2017 to seek approval for the deal.
In addition, the company plans to undertake an entitlement offer to raise funds for predrilling expenses and working capital.
According to the release, the company needs about A$700,000 to prepare for the drilling over the next nine months and another at least A$2 million for drilling and core testing of aquifers, pump tests and pilot plant over the next two years.