American Battery Metals wants option to acquire Viken vanadium project in Sweden

The Viken vanadium project is located in Sweden’s Jämtland County, picture here. Photo by Jan Norrman, Wikimedia Commons.

American Battery Metals (CSE: ABC) announced this week that it has entered into a non-binding letter of intent to acquire a 90% interest in Ontario-based E.U. Energy Corp. and its 100%-owned Viken project in Sweden.

In a media statement, the North Vancouver-based company said the letter of intent stipulates that American Battery Metals has to issue 20 million shares in exchange for 90% of the issued and outstanding shares of E.U. Energy, in addition to the right for E.U. Energy to nominate one member to the board.

The proposed transaction is also subject to a non-brokered private placement for C$1.5 million, a bridge loan to E.U. Energy, due diligence, finalization by both parties to enter into a definitive agreement, in addition to regulatory approvals.

As a result of the financing condition in the LOI, ABM will pursue a non-brokered private placement for C$1.5 million

“This transaction represents a significant milestone for ABM as the Viken is one of the largest, development-stage, vanadium projects globally with the potential for substantial by-product metal production,” Michael Mulberry, President & CEO of American Battery Metals, said in the press release.

Viken is located in Jämtland County, 570 kilometres north-northwest of Stockholm.

The project is host to a significant National Instrument 43-101 polymetallic Mineral Resource, representing an in-situ vanadium (V2O5) Mineral Resource of 163 million pounds in the Indicated category and 16.7 billion pounds in the Inferred category.

According to American Battery Metals, the project has seen a significant amount of work with a 2010 Preliminary Economic Assessment outlining an open pit mine for vanadium, molybdenum and nickel, followed by a 2014 Updated PEA to evaluate the use of bio-heap leaching.

“More recently, E.U. Energy has engaged P&E Mining Consultants Inc. to evaluate a more efficient footprint, lower CAPEX, vanadium-focused operation with the potential for significant by-product metal production,” ABM said in the media brief.

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