Vancouver, British Columbia – June 7, 2022 – Gold Lion Resources Inc. (“Gold Lion” or the “Company”) (CSE:GL) (OTC:GLIOF) (FWB:2BC) announces that it has signed and closed a share purchase agreement dated June 6, 2022 (the “SPA”) with 1000173975 Ontario Inc. (“OntarioCo”) in respect of the Company’s previously announced transaction (the “Transaction”), whereby the Company has acquired all of the issued and outstanding shares of OntarioCo. OntarioCo’s principal asset and undertaking is its interest in the Black Lake Mineral Property, which is located in northern Saskatchewan (the “Property”).
The Property presents a significant opportunity for Gold Lion with respect to battery metals, including Cobalt, Nickel, Copper as well as Gold. The nearby KoBold Metals' Faith in Gravity site is being targeted due to its supply of Cobalt. KoBold’s backers include venture capital firm Andreessen Horowitz and Breakthrough Energy Ventures.
Cobalt is a popular choice for batteries because the metal increases battery life and energy density, which increases electric vehicle (EV) range, by keeping the battery composition stable as the battery is continuously charged and discharged. Nickel has been widely used in batteries for decades going back to Nickel-Cadmium and later Nickel Metal Hydride cells. Most high-performance EV batteries use Nickel-Manganese-Cobalt (NMC) with Nickel comprising 80% of the mix. Tesla mainly uses Nickel-Cobalt-Aluminum with the same 80% Nickel.
Pursuant to the SPA, the Company has issued an aggregate of 20,000,000 common shares (the “Consideration Shares”) to the shareholders of OntarioCo at a deemed price per Consideration Share of $0.05, representing aggregate consideration of $1,000,000. The aggregate consideration paid under the Transaction was based on a valuation of OntarioCo dated June 6, 2022, which was prepared by an independent business valuator.
The Transaction was completed pursuant to available prospectus exemptions in accordance with applicable securities legislation. The Consideration Shares are subject to a hold period of four months and a day from issuance pursuant to applicable securities laws. The Transaction was an arms-length transaction for the Company and did not constitute a fundamental change or result in a change of control of the Company, within the meaning of the policies of the CSE.
Guy Bourgeois, Gold Lion’s CEO commented, “We are excited to acquire this strategic North American property, our shareholders will benefit from exposure to key battery metals in addition to our Gold assets. Cobalt, Nickel and Copper are in high demand due to EV and renewable market growth. This strategic acquisition, combined with our other Polymetallic and Gold projects, creates a valuable portfolio of North American Gold and battery metals assets located in close proximity to current projects and past-producing mines with low political, social and environmental risk.”
About Gold Lion Resources Inc.
Gold Lion Resources Inc. is a mineral exploration company actively involved in the exploration of its precious metal focused portfolio including the Cuteye and Fairview Properties located in Idaho and British Columbia. For more information please visit: https://goldlionresources.com/.
ON BEHALF OF THE BOARD OF DIRECTORS
Guy Bourgeois, CEO
T: +1 (902) 225-8881
The CSE and Information Service Provider have not reviewed and does not accept responsibility for the accuracy or adequacy of this release.
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 acquisition of the Property. 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.