Forza Expands Lithium Assets through Acquisition of Planet Green

Forza Lithium (CSE: FZ) has formally sealed a definitive share purchase agreement, signifying a momentous expansion of its lithium portfolio with the acquisition of 100% ownership in Planet Green Metals. This strategic move underscores Forza's commitment to bolstering its position in the lithium market.

The essence of this transaction lies in Forza's acquisition of all issued shares of Planet Green, constituting a significant milestone in the company's growth trajectory. The consideration for this acquisition involves Forza issuing 11,300,001 of its own common shares, with an estimated market value of $904,000 (C$1.22 million).

As part of the transaction's intricacies, the vendors of Planet Green will be recipients of one Forza payment share for each share they currently hold. It's noteworthy that these payment shares will be subject to a mandatory four-month hold period, further emphasizing the stability and commitment associated with the completion of this acquisition.

A noteworthy aspect of this deal is the voluntary pooling of 9,050,000 payment shares under a Pooling Agreement. This strategic decision speaks to the alignment of interests and long-term vision between Forza and the vendors of Planet Green, fostering a collaborative approach to the future prospects of the combined lithium portfolio.

Beyond the immediate implications of the share purchase, the agreement extends to an amended option agreement dated January 16, 2024. According to this agreement, Planet Green retains the option to acquire a complete interest in the Harrison Road Lithium property. This provision adds an additional layer of flexibility and potential for further expansion of Planet Green's lithium assets.

The synergy between Forza Lithium and Planet Green Metals in this strategic acquisition is poised to create a formidable force in the lithium market. With Forza's issuance of common shares as consideration, the alignment of interests through the pooling agreement, and the potential expansion through the Harrison Road Lithium property option, this acquisition sets the stage for sustained growth and innovation in the lithium sector.

As the lithium market continues to evolve, driven by the increasing demand for lithium-ion batteries in various industries, Forza's strategic moves, such as the acquisition of Planet Green, position the company favorably to capitalize on emerging opportunities. The integration of Planet Green into Forza's lithium portfolio signifies not just an expansion in numbers but a strategic alignment to navigate the dynamic landscape of the lithium industry. Investors and stakeholders alike will be closely watching the outcomes and developments stemming from this transformative acquisition.

To exercise the aforementioned option, Planet Green is required to make payments totaling $102,000. These payments are scheduled on specific dates, falling between 15th February 2024 and 3rd August 2026.

The initial optionors, namely Gravel Ridge Resources and 1544230 Ontario, will uphold a 1.5% net smelter royalty. Notably, a portion of this royalty, one-third to be precise, is available for purchase by Planet Green at a cost of $600,000. Upon such a buyout, the remaining 1% royalty will be retained by the original optionors. The strategic acquisition of Planet Green by Forza Lithium serves not only to fortify its standing within the lithium market but also to complement its existing Jeanette Property. This move underscores Forza's commitment to strategic growth and diversification in the lithium sector.