BlueBird Battery Metals shares rise on acquisition of prospective lithium portfolio in Western Australia

BlueBird Battery Metals Inc (CVE:BATT) (OTCMKTS:BBBMF) announced on Monday that it has acquired 100% of Southern Lithium Pty Ltd, a private Australian company with a portfolio of lithium projects in Western Australia.

Shares of BlueBird jumped nearly 9% to C$0.32 in Toronto and were trading at US$0.21 in the US on Monday morning.

The new acquisition gives BlueBird a foothold in nearly 662 square kilometres within the southern Yilgarn Lithium Province of Western Australia, an area where a number of significant lithium oxide discoveries were made.

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Historical exploration records on Southern Lithium’s land package indicate a number of pegmatite swarms, a type of host rock where lithium mineralization is often found.

“This strategic acquisition for BlueBird secures a highly-prospective land position within an emerging hard rock lithium district,” said Nav Dhaliwal, BlueBird’s CEO. With its stable pro-mining politics and straightforward permitting environment, Western Australia has emerged as a preferred source of high-quality lithium and tantalum supply.  We are excited by the scope of the opportunity before us.”

Under the proposed terms of the agreement, BlueBird will acquire a 100% interest in Southern Lithium by issuing shares with an aggregate value of C$2.5 million. If BlueBird publicly announces an inferred resource of at least 15 million tons of greater than 1% lithium oxide from the Southern Lithium project, it will issue an additional C$1.5 million of common shares equal to the volume weighted average share price.

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Story by ProactiveInvestors