Lithium Royalty, a Canada-based lithium-focused royalty company, has reached a royalty deal with Power Metals on the Case Lake Lithium project in Ontario, Canada.
As per the agreement, Lithium Royalty will receive a 2% gross overriding revenue royalty for C$1.5m ($1.1m). Power Metals will pay the royalty to Lithium Royalty.
The Case Lake Lithium project has six known pegmatite dykes across a 10km-long trend. Power Metals reported that the trend is consistent with high-grade, coarse-gained, spodumene mineralogy close to surface.
The main dyke is thought to include 19m at 1.86% lithium oxide from 7m, and 15m at 1.58% from 19m.
It is estimated that the mineralisation is open in all directions and at depth.
The dykes appear have continuity, which will be explored in a drill campaign this year.
Case Lake project is located around 80km east of Cochrane in north-eastern Ontario.
The site is also located near gold mining camps in Abitibi Greenstone belt and has year-round access to roads including the Translimit Road, which runs close to the site.
Lithium Royalty president and CEO Ernie Ortiz said: “This transaction adds the 32nd royalty to the LRC portfolio, our third since 15 March 2023 IPO transaction, and our 13th royalty in Canada. We are pleased to partner with Power Metals Corp. at its prospective Case Lake Project in an established and supportive mining jurisdiction.”
Proceeds from the royalty sale will be used for an exploration and drilling programme at the site.
Power Metals recently hired a vice-president of exploration to lead the 15,000m drill campaign.
This campaign is considered to the largest in the company’s history with more than double the amount of cumulative metres drilled at the site.
In recent times, the province of Ontario has become a destination for the battery industry.
Recently, Volkswagen announced plans to invest C$7bn to build a battery centre in St Thomas.
The automaker plans to have a 90 gigawatt-hour battery facility, which could use up to 70,000 tonnes of lithium chemicals.