Kenorland Minerals has agreed to sell rights and 100% interest in 844 mining claims that make the Opinaca Lithium Project located within the James Bay region of northern Quebec, Canada to Targa Exploration.
Under the definitive agreement, Targa Exploration will also acquire rights to two mineral exploration licence (MEL) applications that cover several lithium-bearing pegmatite occurrences in eastern Manitoba.
The two MEL applications cover a total area of 19,029ha in eastern Manitoba, which comprise the Red Sucker Lake and Red Cross Lake lithium-bearing pegmatite occurrences.
In exchange for the projects, Targa will issue 4,377,375 of its common shares, grant 3% net smelter royalty over the projects, and make $100,000 in cash payments to Kenorland at the closing of the transaction.
In a press statement Kenorland said: “Following the Closing, Kenorland shall be entitled to receive 9.9% of the common shares or other equity securities issued by Targa in future financings until Targa has raised an aggregate of not less than $5,000,000 pursuant to such financings.”
Subject to regulatory nod, the transaction is planned for completion in January 2023.
Targa president and CEO Jon Ward said: “I am thrilled to see Targa provide its shareholders with exposure to exploration for lithium pegmatites in Canada. Lithium is essential to achieve the goal of minimising carbon emissions and we believe the best place in the world to explore for lithium is Northern Canada.”
The Opinaca Project comprises a cluster of highly anomalous and coincident regional lithium and cesium lake sediment geochemical anomalies that could hold Li-Cs-Ta pegmatite mineralisation.