Lithium One Metals and Norris Lithium to merge

Canada’s Lithium One Metals (TSXV: LONE) said on Monday it has inked a deal with fellow miner Norris Lithium (CSE: CHCK) to merge the companies.

Under the agreement, Vancouver-based Lithium One will acquire all of the issued and outstanding common shares of Norris on the basis of 0.672 common shares of Lithium One for each share of Norris Lithium held.

The strategic consolidation, the parties said, represents a significant milestone for both companies as they will benefit from the creation of a large land position in James Bay, Que., and an established presence in northwestern Ontario in a emerging lithium district.

The miners also will profit from their combined technical expertise, and a joint exploration program already underway, they said. 

Upon the closing of the transaction, Norris shareholders will hold around 35% of the common shares of the combined company.

Current President and CEO of Norris Lithium, Dale Ginn, has been appointed as president and CEO of the new Lithium One, while the company’s current CEO Nav Dhaliwal will assume the role of executive chair.

“This merger combines two exciting and parallel lithium exploration portfolios, particularly focused on the active and high-profile James Bay lithium belt,” Dhaliwal said.

“We are excited to immediately take advantage of the synergies being provided by combining operations of the two companies in James Bay, and for Norris shareholders, to add diversification into Ontario with the addition of established lithium-prospective properties in what we see as an important emerging lithium district,” Ginn noted.

There has been a flurry of activity in the lithium sector this year, with the merger between Allkem and Livent, which created the world’s third largest lithium producer, heading the list.

In March, Liontown Resources (ASX: LTR) rebuffed a US$3.7 billion (A$5.5 billion) buyout bid from Albemarle, after turning down two previous offers by the U.S. producer.

Earlier this month, Tecpetrol Investments launched an all-cash buyout bid for Canada’s Alpha Lithium (US-OTC: APHLF),  which is active in the Tolillar and Hombre Muerto salt flats in Argentina.