Monger Gold completes acquisition of American Consolidated Lithium and prospective Scotty project
Monger Gold is well-funded with $4.75 million in the bank to begin exploration at its Scotty lithium project.
Monger Gold (ASX: MMG) has completed the $2 million acquisition of American Consolidated Lithium, which holds the rights to acquire the Scotty lithium project in southern Nevada.
Scotty is considered to be a very large-scale, sediment-hosted project comprising 700 placer mining claims covering approximately 56.6 square kilometres.
It is situated 70km from Albermarle Corporation’s Clayton Valley (Silver Peak) lithium mine (which is the only producing lithium mine in the US) and 330km from Tesla’s giant lithium-ion battery and electric vehicle manufacturing facility (or gigafactory).
The project adjoins the Bonnie Claire lithium project owned by Iconic Minerals, which hosts an inferred resource of 3.4 billion tonnes at 1,013 parts per million lithium for 18.3 million tonnes of lithium carbonate equivalent.
Large lithium asset
The acquisition of American Consolidated Lithium provides Monger with immediate exposure to a large and strategically-located lithium asset in a world-class mining jurisdiction.
High-tenor, coherent, undrilled soil anomalies defined in limited previous work have confirmed the Scotty project has potential to host a sizeable lithium resource.
Monger will also get direct access to American Consolidated Lithium’s team which has considerable experience in North America’s minerals exploration sector.
Milestone achievement
Monger chairman Peretz Schapiro said the highly-prospective acquisition was a milestone achievement for the company.
“This acquisition is truly transformational and underpins our strategy and vision of becoming a leading supplier of lithium to the North American downstream battery industry,” he said.
“We will be well placed to execute on this vision by developing the Scotty project and continuing to seek out value accretive acquisitions.”
He said plans were underway for an aggressive exploration program at Scotty, including drilling and systematic soil sampling, with the aim of delineating a maiden resource.
The company is in the process of recruiting a new chief executive officer with experience in the global lithium field.
Capital raising
Last month, Monger completed a $1.76 million capital raising through the issue of 7.04 million new shares at $0.25 each to sophisticated and professional investors.
The placement boosted the company’s cash at hand to approximately $4.75 million and will allow it to remain fully-funded to conduct its planned exploration program.