PERTH (miningweekly.com) – ASX-listed Galan Lithium has entered into a binding joint venture (JV) agreement with fellow-listed Redstone Resources to acquire three lithium projects in the James Bay lithium province, in Quebec.
The Camaro-Taiga-Hellcat property blocks collectively cover 5 187 ha and are located adjacent to fellow listed Patriot Battery Metal’s Corvette property.
Further, the JV has also secured an option to acquire 100% of the PAKE east and PAK southeast lithium project comprising 1 415 ha in Ontario's Electric Avenue near Frontier Lithium Inc's PAK lithium project.
Under the terms of the agreement, Galan will issue 250 000 fully paid ordinary shares as well as pay C$500 000 to vendors Infinity Stone Ventures Corp, and would issue 300 000 shares and a payment of C$225 000 to private individuals in consideration for the James Bay lithium projects.
Furthermore, Galan would make a payment of a three-month option exclusivity fee of C$20 000 to Infinity. On the exercise of the option, the company would make a payment of C$200 000 plus issue C$230 000 worth of shares to Infinity based on the volume weighted average price for shares traded on the ASX for the five trading days prior to the date of the exercise of the option, in consideration for the PAK lithium projects.
Furthermore, Galan and Redstone will pay or assume a 2% net smelter return royalty over all of the James Bay lithium projects and PAK lithium projects, with a right to buy back one-half of each royalty payment to each royalty holder of C$1-million.
“Galan is very pleased to invest in the world-renowned James Bay lithium district in Québec, Canada. In JV with Redstone, who will be the manager. Galan is very experienced in lithium exploration and looks forward to the JV initiating exploration in the region,” said Galan MD Jian Pablo Vargas de la Vega.
“Securing an option in a premier lithium district of North-West Ontario is also pleasing to Galan. Both projects are low-entry-cost ventures into Canada. The JV projects are of quality and situated nearby excellent lithium discoveries, with the James Bay lithium projects being adjacent to the Patriot Battery Metals high-grade Corvette pegmatite discovery, and the PAK lithium projects situated in Ontario's Electric Avenue area.
“Securing a prospective position in two premier lithium exploration global hotspots is value accretive and complements our exploration efforts in Greenbushes South in Western Australia to create further value for shareholders in parallel with our development and production lithium brine assets in Argentina.”
Redstone chairperson Richard Homsany said on Wednesday that the company was delighted to be partnering with Galan to further solidify its exposure to the James Bay lithium region, and securing an option in Ontario.
“Redstone has recently commenced operating in Canada and will be the manager of the JV. Galan is a highly experienced lithium exploration business that will bring to the table considerable technical depth and expertise as we aim to accelerate our exploration efforts in the region,” said Homsany.
“These new Canadian assets are a welcome addition to our existing copper and lithium portfolio, and further strengthen our strategy of becoming a leading critical metals explorer and developer.”