The Critical Resources Ltd (ASX: CRR) share price is exploding higher on Wednesday following a completed acquisition by the company.
At the time of writing, the emerging copper and gold development company's shares are up 19.51% to 4.9 cents. This means that over the past week, its shares have now risen by more than 30%.
Critical Resources formally acquires lithium project
Investors are fighting to get a hold of the Critical Resources share price after the company announced its latest update.
According to this morning's release, Critical Resources advised it has completed the acquisition of the Mavis Lake lithium project.
Located in Ontario, Canada, the project lies within a well-established lithium province close to highway and railway transportation arteries. Previous drilling results at the site have yielded positive assays which present significant exploration potential.
The region is littered with other projects which are also situated within the vicinity of Marvis Lake.
The key terms of the transaction consist of a $1.5 million cash payment split evenly to Essential Metals Ltd (ASX: ESS) and Canadian-listed International Lithium Corporation. In addition, a further $1.5 million payment will be made in the form of 68 million Critical Resources shares. These will be issued at a price of 2.2 cents apiece, again evenly split between Essential Metals and International Lithium.
Should certain milestone targets be reached, up to $3 million will be paid in cash depending on the definition of the Mineral Resources estimate. In the event that the relevant milestones are not met within 5 years, the obligation to reward the vendors will expire.
Critical Resources managing director, Alex Biggs commented:
We are very excited to complete the acquisition of the Mavis Lake lithium project.
We have no doubt that the Project will add significant value to the business moving forward. Our strategy in 2022 is to begin exploration drilling as soon as possible once permitting is completed. We have multiple targets to explore with a view to achieving, over time, the milestones set out by the vendors of 5.0 million and 10.0 million tonnes.
About the Critical Resources share price
Since this time last year, the Critical Resources share price has accelerated to achieve gains of almost 110%. The company's shares hit a 52-week high of 5.4 cents in November, before treading lower in the following month.
Critical Resources commands a market capitalisation of roughly $50.29 million and has approximately 1.09 billion shares on issue.
