Junior explorer Burley Minerals (ASX:BUR) has signed a heads of agreement with privately held Aurora Lithium to purchase 5 lithium projects in Manitoba, Canada.
Burley, which has a $15.7 million market capitalisation, has its eyes on the Paull Lake, Oxford Lake, Partridge, Cormorant, and White Rabbit projects.
The company says these projects give it exposure to rocks in the Superior Province area of the Canadian Shield — an ‘emerging and extremely underexplored’ lithium region.
Under the terms of the deal, Burley will pay Aurora 2 million shares in return for the projects, 1.2 million of which will be voluntarily escrowed for 12 months, as well as up to 12 million facilitation performance rights.
The first million performance rights will convert into Burley shares upon the grant of 3 mineral exploration licences over any of the projects within 2 years from their date of issue.
Another 2 million performance rights will convert into Burley shares if the company achieves 10 rock chip samples of more than 1.5% lithium oxide (Li2O) from any of the projects within 3 years.
If Burley hits 3 drilling intercepts wider than 10m and grading higher than 1% Li2O at any project within 4 years, it will either pay the sellers $1 million or 4 million Burley shares.
Finally, if Burley can achieve an inferred resource of no less than 10 million tonnes grading at least 1% Li2O at any project within 5 years, it will pay the sellers either $1.65 million in cash or 6 million Burley shares.
On top of all this, Burley will grant the sellers a 2% net smelter royalty payable on all minerals obtained from the projects.
Burley Managing Director and CEO Stewart McCallion says following the company’s exploration success at its Chubb Lithium Project in Quebec, it is now looking to expand its landholding to cover a further 1,000km-square in Manitoba.
“The addition of 5 new projects provides a unique value proposition to Burley’s existing lithium portfolio.
The Burley exploration team can now leverage its substantial lithium exploration experience when preparing to begin exploration programs on the new properties.”
“The Burley exploration team can now leverage its substantial lithium exploration experience when preparing to begin exploration programs on the new properties”
Aurora is the current legal owner of two granted mineral exploration licences at the Cormorant and White Rabbit projects, covering 186km-square and 70km-square of ground, respectively.
Meanwhile, Burley has applied for exploration claim applications for Paull Lake, Partridge, and Oxford Lake through its wholly owned subsidiary, Bouvier Lithium Inc.
Burley Minerals had roughly $4.1 million cash and cash equivalents at hand as of 30 September 2023.
Write to Joshua Smith at Mining.com.au
Images: Burley Minerals
