Loyal Lithium Limited entered into a binding agreement to acquire a 60% stake in Hidden Lake Project in Yellowknife, NWT from Youssa PTY Ltd for AUD 7.4 million.

Loyal Lithium Limited (ASX:LLI) entered into a binding agreement to acquire 60% stake in Hidden Lake Project in Yellowknife, NWT from Youssa PTY Ltd for AUD 7.4 million on March 28, 2023. The consideration include cash AUD 0.25 million cash, 14 million of common stock and 4 million of options. As of May 8, 2023, shares issued by Loyal Lithium Limited for consideration will be subject to an escrow period conditions of 18-24 months, as determined by ASX.

The Company acknowledges the existing 2% net smelter royalty payable in respect of the claims. The acquisition will be financed through existing cash reserves. The transaction is subjected to the acquirer shareholders approval for the Acquisition and investor spread via a small capital raising. The transaction is expected to settle on June 7, 2023.