Cypress Development (CYP.V) has closed the acquisition of the Clayton Valley Lithium project owned by Enertopia (ENRT). As this piece of property is located adjacent to the Cypress Development claims and Cypress’ exploration efforts have indicated the lithium-bearing claystone units on the Cypress land appear to be continuing onto the newly acquired claims. This could potentially have a positive impact on the feasibility study as it gives Cypress Development greater flexibility to develop the project.
It’s quite likely Cypress will be able to generate lot more value than it will be paying for the claims. Cypress has made a US$1.1M cash payment and has issued 3 million shares to Enertopia for a total pro forma value of around C$5.5M.
Disclosure: The author has a long position in Cypress Development. Cypress is a sponsor of the website. Please read our disclaimer.
