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17/07/2024
Mining News

United Lithium expands its Nordic assets in Finland and Sweden

United Lithium Corp. has announced a substantial expansion of its land holdings in Finland and Sweden. The company has acquired rights to three new properties: the 54,400 hectare Kova Property and the 13,900 hectare Kast Property in Finland, as well as the 14,000 hectare Axmarby Property in Sweden. These acquisitions mark a nearly 300% increase in United Lithium’s Nordic portfolio, strategically positioned in geological terrains highly prospective for lithium-bearing pegmatites.

United Lithium obtained these properties by acquiring all outstanding shares of two private companies, PR1 Finland Oy (a wholly-owned Finnish subsidiary of Pure Resources Ltd.) and Scandinavian Battery Metals (SBM), a Canadian private company. The Kova Property, located approximately 150 km north of Helsinki, is situated in a geological setting known for its pegmatite dykes enriched in various minerals including lithium. The area shares similarities with the nearby Keliber Lithium Mine, currently under development.

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The Kast Property, located near the Rosendal tantalum deposit about 110 km west of Helsinki, is in the Kemiö metallogenic region. This area is known for its potential in rare-element pegmatites, offering prospects for lithium and other minerals critical to modern technologies.

In Sweden, the Axmarby Property expands United Lithium’s presence near its flagship Bergby Project, strategically located north of Gävle on the Gulf of Bothnia coast. This property is noted for its pegmatite dyke systems and geological characteristics conducive to mineral exploration.

Scott Eldridge, President and CEO of United Lithium, emphasized the strategic importance of these acquisitions, particularly in light of Europe’s growing demand for domestic sources of raw materials to support decarbonization efforts. He highlighted the synergies with existing projects and infrastructure, such as Axmarby’s proximity to Bergby, as key advantages.

As part of the acquisition terms, United Lithium paid AUD$20,112 to Pure Resources Ltd. and made payments totaling CAD$40,050 and USD$110,984 to an arm’s-length third-party vendor. Pure Resources Ltd. retains a 2% net smelter returns royalty (NSR Royalty) on the Kast and Kova Properties, with a buyback option for 1% of the NSR Royalty for CAD$750,000.

These acquisitions represent a significant step forward for United Lithium in expanding its footprint in Europe’s critical minerals sector, positioning itself to meet the region’s growing demand for sustainable raw materials.

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