Cazaly Resources (ASX:CAZ) has finalised the agreement terms to acquire up to 100% of the Sundown Lithium Project, located in the James Bay lithium province, Quebec, Canada.
The Sundown project represents a significant acquisition for the Company, comprising 510 mining claims covering an area approximately 260km2 and possessing over 200 documented outcropping pegmatites.
The large tenement holding is strategically positioned between Allkem’s (ASX:AKE) James Bay deposit with a lithium reserve of 37.2Mt @ 1.3% Li2O, and Patriot Battery Metals (ASX:PMT) Corvette Lithium Discovery which is host to 70 lithium bearing pegmatites over a 214km-square land package.
Further recent success in the region includes Critical Elements’ Rose deposit (37.2Mt @ 0.94% Li2O), Nemaska’s Whabouchi deposit (36.6Mt @ 1.3% Li2O) and Winsome Resources’ (ASX:WR1) Cancet exploration target with 15-25Mt @1-2% Li2O.
Cazaly and vendor 1Minerals Corp entered into a property option agreement, which includes various cash, stock, and non-refundable option fee components, as well as a 2% net smelter royalty.
As part of the agreement, shares will be issued, based on the volume weighted average share price for the period of 5 consecutive trading days on which shares are traded up to and including the trading day prior to the relevant issue date, at the then prevailing C$/A$ exchange rate as published on the website of the Reserve Bank of Australia.
1Minerals Corp work with companies focused on the acquisition, exploration, and development of mineral properties in Canada and internationally. They have one of the largest grassroots lithium portfolios in North America and Quebec, Canada.
Commenting on the acquisition, Cazaly’s Managing Director Tara French says: “We are excited to be able to announce the completion of the acquisition of this special asset. Through Sundown, Cazaly now possesses a major plot of land in an emerging lithium province with significant exploration potential courtesy of relatively untested, outcropping pegmatites.
We are nestled in amongst some other major lithium projects and while our in-country exploration team have been delayed by the damaging forest fires, we cannot wait to get boots on the ground to start confirming targets once the area has been deemed safe for entry.”
“Through Sundown, Cazaly now possesses a major plot of land in an emerging lithium province with significant exploration potential courtesy of relatively untested, outcropping pegmatites”
This all follows the completion of due diligence activities by Cazaly, encompassing a review of historic exploration activities at Sundown. The Cazaly board is satisfied that the various reports identify the potential for significant lithium mineralisation at the project, which represents a strong opportunity to deliver value for shareholders through exploration.
Following the completion of due diligence, Cazaly has finalised desktop target generation activities for further follow-up exploration.
The company has engaged an in-country team to conduct its first phase of exploration that will consist of a reconnaissance field work program and rock chip sampling, in order to conduct on-ground assessments at key targets to be compared with historically documented reports.
Cazaly remains ‘excited’ about the potential of the Sundown project however access has been severely affected due to forest fires in the region.
Access restrictions are now easing as the fires have abated, and areas become safe to explore. The initial field program is now scheduled for Q3 2023 subject to clearances from the relevant authorities.
Write to Adam Orlando at Mining.com.au
Images: Cazaly Resources Ltd