Noram Lithium Corp (NRM)

[Mr. Zen]

Noram Lithium Says Lithium Royalty and a Fund Make US$14-Million Investment in the Zeus Lithium Project
2022-02-07 03:15:43 PM ET (MT Newswires)

03:15 PM EST, 02/07/2022 (MT Newswires) -- Noram Lithium (NRM.V) on Monday said it signed a binding letter of intent with Lithium Royalty and Waratah Electrification and Decarbonization AIE LP (E&D) for the US$5-million purchase of a 1% gross overriding royalty on its Zeus lithium project in Nevada and a US$9-million investment through a private placement.
The company said the royalty interest is structured as a US$4-million payment on closing and a further US$1 million when Noram completes a definitive feasibility study for the project.
Lithium Royalty and E&D will also buy US$9 million of shares priced at C$0.825 each in a private placement. The two have the option to make further investments but agreed to limit their stake in Noram to under 19.9%.
"We are absolutely thrilled to have Lithium Royalty Corp. and its globally recognized financial and technical team as a key strategic and cornerstone shareholder. LRC's strong vote of confidence in our advanced Zeus Project and alignment with Noram's strategy is significant and we look forward to developing our strategic relationship over time," chief executive Sandy MacDougall said in a release.
Noram shares were halted prior to its release and no resumption of trading has yet been announced. They last traded Friday, closing at C$0.80 on the TSX Venture Exchange.