Blaze Minerals (ASX:BLZ) has struck a Heads of Agreement (HOA) with Exiro Minerals to acquire 100% of the North Spirit Lithium Project in Ontario, Canada.
In tandem with the purchase, Blaze has launched a $2 million share placement.
The company says the North Spirit Project is strategically located in Ontario’s ‘Electric Avenue’ in the Red Lake region and comprises 1,698 claims for about 340km-square.
The project lies about 30km along strike to the southeast of Frontier Lithium’s (TSXV:FL) world-class PAK and Spark Lithium projects, which host mineral resources of 7.2Mt @ 1.8% Li2O measured and indicated and 2.8Mt @ 2.22% Li2O inferred, and 18.8Mt @ 1.5% Li2O indicated and 29.7Mt @ 1.3% Li2O inferred, respectively.
Blaze Minerals shares soared 90% to close at $0.019 on Friday 26 May.
Upon execution of the HOA, Blaze will pay a non-refundable cash fee of CAD$50,000 to Exiro and, within 5 business days of the completion of due diligence on the assets, will pay Exiro an additional CAD$50,000 on top of the issue of 55 million shares at an issue price of $0.01 per share.
Other terms of the HOA include Blaze granting Exiro a royalty of 2% of the net smelter return on all minerals produced from the licences by the company, which shall otherwise be granted on customary terms, with effect on and from the settlement date.
Blaze is also expected to assume in-country exploration management of the project.
The company notes the acquisition comes following a recently reported intercept of 398m @ 1.88% lithium oxide (Li2O) including 23m @ 3.12% Li2O from Frontier Lithium.
Additionally, whole rock analysis of litho-geochemical data reveals multiple areas of fractionation and enrichment in key volatile elements, which represent a precursor to lithium mineralisation.
It is also reported by Blaze that samples gathered from work on 1km sampling spacing have been used as an exploration guide to the acquisition of the mineral claims and as a springboard for work on the project to be completed.
Speaking on the acquisition, Blaze Minerals Corporate Director Mathew Walker says: “We are delighted to have acquired a substantial landholding in the highly prospective ‘Electric Avenue’ in Ontario and look forward to the execution of our northern hemisphere summer exploration program with our partners at Exiro.”
“We are delighted to have acquired a substantial landholding in the highly prospective ‘Electric Avenue’ in Ontario”
Meanwhile, Blaze also notes it has received firm commitments for a placement to raise up to $2 million from new and existing professional and sophisticated investors.
Under the placement, Blaze will be expected to issue up to 200 million fully paid ordinary shares at $0.01 per share, which represents a 1.35% premium to the company’s 15-day volume weighted average price (VWAP) and nil discount to its last closing price.
Proceeds from the placement are expected to be primarily used to support the company’s obligations pursuant to the HOA and exploration and development activities at the project, as well as across the company’s existing project, and for general working capital.
With the HOA between both parties now signed, Blaze Minerals announces it will move forward with initial field activities that have been designed to target two micra-granite pegmatites defined in regional Ontario Geological Survey (OGS) mapping. These are interpreted to compare ‘favourably’ to results from Frontier’s PAK deposit.
Blaze Minerals is an ASX-listed exploration company with a portfolio that supports a business model designed to facilitate the discovery and development of economic mineral deposits. The company has a primary focus on the gold exploration and development of its projects in the Murchison and North Eastern Goldfields regions of WA.
Meanwhile, Exiro Minerals combines modern technology with traditional methods and historical paper date to acquire and explore high-quality mineral projects. The company has an experienced management team in the Red Lake region with an ‘advanced’ and ‘positive’ relationship with indigenous committees.
Write to Adam Drought at Mining.com.au
Images: Blaze Minerals Ltd
