November 10, 2023, Vancouver, BC – Blanton Resources Corp. (“Blanton” or the “Company) (C: BLNT) is pleased to announce that it has issued its first tranche of shares under the terms of its recently announced share purchase option agreement to acquire American Brines Lithium Corp. (“ABLC”) (see press release dated September 13, 2023).
ALBC which owns American Brines LLC, its wholly owned U.S. subsidiary, holds the Black Rock South lithium brine project, located in Washoe county, Nevada.
The Transaction
The Company entered into a share purchase option agreement dated September 13, 2023, among the Company, ABLC and the shareholders of ABLC pursuant to which the Company has agreed to acquire all the issued and outstanding shares of ABLC from the ABLC shareholders. As consideration under the agreement, the Company has agreed to issue 10,485,015 common shares (the “Shares”) to the ABLC shareholders at a deemed price of $0.10 per common share, issuable as follows:
(i) 3,495,005 Shares on signing (which have now been issued);
(ii) 3,495,005 Shares on the first anniversary of the agreement (at Company’s Option); and
(iii) 3,495,005 Shares on the second anniversary of the agreement (at the Company’s Option).
The Company may in its sole discretion, abandon the property and will not be required to issue any Shares that have not become due for issuance prior to the time of abandonment. If such abandonment occurs prior to the issuance of all Shares, the Company, upon request, will return its respective portion of common shares in ABLC s back to the requesting former ABLC shareholder.
The securities issued under this transaction will be subject to resale restrictions for a period ending four months and one day from the date of issuance.
The transaction is subject to the approval of the Canadian Securities Exchange. The transaction as proposed, is an arm’s-length transaction for the Company, and does not constitute a fundamental change or result in a change of control of the Company, within the meaning of the policies of the CSE.
On behalf of the Board of Directors
Michael Dake
CEO
(604) 683-8610
Cautionary Statement
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Often, but not always, forward-looking information and information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the Company’s expected benefits of the Transaction and opportunities which will arise from the acqusition. The forward-looking information reflects management’s current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking information. Such risk factors may include, among others, but are not limited to: general economic conditions in Canada and globally; industry conditions, including governmental regulation and environmental regulation; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, processing and transportation problems; changes in tax laws and incentive programs; failure to realize the anticipated benefits of acquisitions and dispositions; and the other factors. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. Factors that could cause actual results or events to differ materially from current expectations include: (i) adverse market conditions; and (ii) other factors beyond the control of the Company. New risk factors emerge from time to time, and it is impossible for the Company’s management to predict all risk factors, nor can the Company assess the impact of all factors on Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward-looking information. The forward-looking information included in this news release are made as of the date of this news release and the Company expressly disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable law. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company’s filings with Canadian securities regulators, which are available at www.sedar.com.
