Snow Lake Resources Ltd. (NASDAQ: LITM) completed the purchase of Surface Metals Inc.’s remaining 49% interest in 37 mineral claims located in southeastern Manitoba, bringing the total acreage of the Shatford Lake, Birse Lake, and Cat‑Euclid Lake claim groups to 17,009 acres. The transaction, valued at $650,000, gives Snow Lake full ownership of the claims and a modest lithium‑related exploration portfolio.
The acquisition aligns with Snow Lake’s broader strategy to diversify its resource base, but the company’s primary focus remains on uranium exploration. Snow Lake has secured significant funding for its uranium projects in Namibia and the United States, and it has indicated that lithium exploration on the newly acquired claims will be limited until the lithium market recovers from its current depressed levels. The $650,000 cash inflow provides a small liquidity boost that can support ongoing uranium activities without materially altering the company’s overall financial position.
Financially, the deal represents a modest addition to Snow Lake’s asset portfolio. While the cash inflow is limited, the acquisition does not significantly change the company’s balance sheet, which has recently reported net losses and a negative return on equity. Nonetheless, the transaction strengthens Snow Lake’s claim portfolio and provides a potential future revenue stream should lithium demand rebound.
Additional context: Snow Lake earned a 51% interest in the claims through an option agreement dated January 29 2024. The transaction also includes a 2% gross overriding royalty in favor of Lithium Royalty Corporation. Surface Metals is divesting its Manitoba interest as part of a broader strategy to focus on its core gold and lithium projects in Nevada.
The lithium market remains subdued, and Snow Lake’s management has signaled that exploration on the Manitoba claims will be deferred until market conditions improve. The acquisition therefore represents a strategic, low‑risk expansion that supports the company’s long‑term diversification goals without diverting significant resources from its uranium program.
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