Consolidated Lithium Metals Inc. (TSXV: CLM | FRA: Z36 | OTCQB: JORFF) has announced a significant expansion of its lithium portfolio in Québec. The company entered into a term sheet with Linear Minerals Corp. on June 4, 2026, to acquire a 100% undivided interest in the Augustus Lithium Project and additional adjacent claims located in the Abitibi and James Bay regions.
Transaction Details
The proposed transaction involves the acquisition of 449 mineral claims covering approximately 215 square kilometers. Of these, 358 claims are in the Abitibi region and 91 claims are in the James Bay region. The total consideration is valued at approximately C$2.75 million, comprising C$687,500 in cash and C$2,062,500 in common shares of Consolidated Lithium Metals.
Payment Structure
The cash portion is payable upon closing. The share portion will be issued based on the 20-day moving average trading price of CLM shares on the TSX Venture Exchange from June 4, 2026. These shares will be subject to applicable statutory hold periods and any escrow provisions required by the TSXV and the definitive agreement.
Key Terms
- Exclusivity Period: Linear Minerals has granted Consolidated Lithium Metals a legally binding exclusivity period until October 1, 2026, for due diligence and finalization of the definitive agreement.
- Break Fee: A binding C$1,687,500 break fee applies if Linear Minerals terminates the term sheet to accept a superior proposal or breaches exclusivity obligations.
- Right of First Refusal: Consolidated Lithium Metals has a right of first refusal over sales of the consideration shares, subject to conditions.
- Right to Match: In the event of a superior proposal, Consolidated Lithium Metals has a legally binding right to match, subject to certain conditions.
Financing and Timeline
Consolidated Lithium Metals plans to finance the transaction through internal resources, strategic financing initiatives, and support from existing shareholders and external financial advisors. The parties aim to execute the definitive agreement by July 19, 2026, pending completion of due diligence and regulatory approvals.
This acquisition marks a strategic move for Consolidated Lithium Metals to strengthen its position in the lithium-rich regions of Québec, supporting the growing demand for lithium in the electric vehicle and energy storage markets.
