In a move poised to reshape the landscape of critical mineral exploration in Ontario, PowerStone Metals and privately held Libra Lithium have announced a definitive merger agreement. The acquisition will see PowerStone acquire all outstanding shares of Libra, creating a combined entity with a robust portfolio of lithium projects across the province and in Quebec.

The merger comes at a crucial time for the battery metals sector, with global demand for lithium surging to support the transition to electric vehicles and renewable energy storage. The combined entity will be well-positioned to capitalize on this demand, leveraging Libra’s promising project portfolio and PowerStone’s market presence.

Libra Lithium has rapidly established itself as a significant player in the Canadian lithium exploration scene. Within a year, the company assembled a substantial portfolio of lithium assets and achieved notable discoveries on three grassroots projects. Key assets include the Soules Bay-Caron (SBC), Flanders North, and Flanders South projects in Ontario, as well as the Nemiscau project in Quebec. Notably, the SBC project has yielded promising results, with the discovery of a new pegmatite field containing 18 spodumene outcrops, some reaching up to 30 meters wide, and samples grading as high as 6.64% Li2O. Spodumene crystals up to 0.4 meters long have also been identified at the site.

Adding further momentum to the merger, Libra recently secured a C$33 million (US$23 million) earn-in agreement with KoBold Metals for the Flanders South, Flanders North, and SBC projects. KoBold Metals, backed by prominent investors like Bill Gates and Jeff Bezos, utilizes artificial intelligence and advanced data analytics to identify promising mineral deposits. This partnership brings significant financial resources and cutting-edge exploration technology to the table, enhancing the potential for significant discoveries.

“With limited capital, we were able to build a company with a large portfolio of lithium assets and discover lithium mineralization on three grassroots projects in under a year,” stated Libra Lithium CEO Koby Kushner in a December press release, highlighting the company’s efficient and effective exploration strategy.

KoBold Metals chief strategy officer Daniel Enderton expressed enthusiasm for the collaboration, stating, “The three projects are compelling, and we are eager to follow up on the encouraging data that Libra has collected to date. Furthermore, we believe that combining Libra’s capable team with KoBold’s experienced explorationists and exploration technology will set us up for success.”

As part of the merger process, PowerStone will also consolidate its outstanding common shares on a basis of approximately one post-consolidation share for every 2.4966 outstanding shares. This consolidation is a standard procedure in such transactions and aims to streamline the company’s capital structure.