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Hawkstone secures option to acquire Big Sandy, Lordsburg lithium projects

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Hawkstone secures option to acquire Big Sandy, Lordsburg lithium projects

Hawkstone Mining Ltd. said March 22 that it signed an option to acquire the Big Sandy lithium clay project in Arizona and the Lordsburg lithium brine project in New Mexico by acquiring the entire issued share capital of USA Lithium Ltd.

The Big Sandy project comprises 258 claims covering approximately 20.9 square kilometers, while the Lordsburg project comprises 208 claims covering 16.8 square kilometers, plus a further 11.9 square kilometers under application.

Under the deal, the company paid US$250,000 through the issue of 12.5 million shares to acquire the option. Hawkstone may exercise the option to acquire USA Lithium by issuing 250 million shares worth US$5 million, and reimburse up to US$250,000 of expenses incurred on the projects by USA Lithium.

The deal is conditional on the completion of a US$2.5 million placement by Hawkstone. Following completion, Paul Lloyd and Klaus Eckhof will join Hawkstone's board as executive chairman and nonexecutive director, respectively.