Libra acquires Stimson project for shares

Executive Summary

• Libra Energy Materials Inc. has acquired a 100% undivided interest in the Stimson project, a drill-ready lithium-cesium asset located in the Case Lake district of Ontario, from Last Resort Resources Ltd. and Bounty Gold Corp.
• The acquisition is part of CEO Koby Kushner’s strategy to consolidate the lithium space through bottom-market M&A, leveraging the project's strategic location along the Quetico-Abitibi subprovince boundary, which hosts major global cesium resources.
• The transaction involves a base purchase price of $50,000 payable in shares, with significant potential upside through bonus shares tied to specific drilling results and a 2% Net Smelter Return (NSR) royalty.

Key Details

• Asset Acquired: 100% undivided interest in the Stimson project, located in the Case Lake lithium-cesium district, Ontario.
• Counterparties: Last Resort Resources Ltd. and Bounty Gold Corp.
• Base Consideration: $50,000 total purchase price, payable via issuance of Libra common shares based on the five-day volume-weighted average price (VWAP) prior to issuance.
• Vendor Option: Vendors have the option to defer receipt of the share payment for up to one year from the agreement date.
• Bonus Share Structure (Drilling Incentives):
  • $100,000 in shares if drilling yields at least 20 meters grading >1% Li2O.
  • $250,000 in shares if drilling yields at least 5 meters grading >3% Cs2O.
• Royalty Terms: A 2% Net Smelter Return (NSR) royalty is payable upon commencement of commercial production.
• Royalty Repurchase Option: Libra has the option to repurchase half of the NSR royalty for $250,000.
• Geological Context: The project straddles the boundary between the Quetico and Abitibi subprovinces, adjacent to Power Metals' Case Lake deposit. Historical drilling (DDH PT94-11) identified a 39.8-meter interval of granitic complex containing possible spodumene pegmatite.
• Strategic Rationale: CEO Koby Kushner cites low acquisition costs, excellent infrastructure access (roads/rail), and favorable lithium price trends as key drivers for the acquisition.
• Qualified Person: Benjamin Kuzmich, PGeo, Vice-President, Exploration, reviewed and approved the technical data.

Notable Quotes

• "With a low acquisition cost, we are executing our strategy of consolidating the lithium space through bottom-market M&A. The drill-ready Stimson project is strategically located along the same geological subprovince boundary that hosts Power Metals' nearby Case Lake lithium-cesium project -- one of the largest cesium resources globally." — Koby Kushner, CEO