Pele Mountain Resources Inc. said June 1 it agreed to sell its Eco Ridge rare earths-uranium project in Ontario to an arms-length party for C$380,000 in cash, citing weak uranium and rare earth prices.
The company also signed a non-binding letter of intent with Enirgi Group Corp. to develop a direct-extraction process, or DXP, lithium processing technology in exchange for an 85% stake on a fully diluted basis.
Enigiri will provide management services, marketing services and cooperate in undertaking lithium brine exploration and development in North America in addition to the agreement to develop the DXP technology.
As part of the transaction, Rob Scargill was named Pele Mountain's interim president and CEO, effective immediately, replacing Al Shefsky.
Scargill, a mining engineer with 28 years of experience, will guide Pele Mountain's transition into its alliance with the Enirgi Group.
Definitive agreements on the letter of intent and on the deal are expected to be signed by June 30.
The company also intends to undertake a 1-for-10 share consolidation, reducing the outstanding 209,996,930 shares to approximately 20,999,693 shares.