Québec-headquartered Comet Lithium (TSX-V:CLIC) has acquired three new projects in Canada’s lithium-rich James Bay region.
The company has inked a deal with Troilus Gold (TSX:TLG) to acquire the Mercator, Monarch and Elmer East projects, expanding its footprint in the region to over 346 km².
To complete the purchase, Comet Lithium will issue 1.5 million shares and grant Troilus a 24-month participation right allowing the company to maintain its stake in Comet.
Troilus will also be granted a 2% net smelter royalty, with the right to buy back 1% for $3 million on each of the projects.
Comet Lithium President Vincent Metcalfe says the acquisition drives further consolidation in the James Bay area.
“By securing these prospective assets, we are making investments at opportune prices,” he says.
“The well-located and highly prospective projects we are acquiring will be instrumental in our future growth and further enhance our position within the highly active and strategic Trieste Lithium Greenstone Belt.”
The Mercator Project is located 40km southeast of Comet’s Liberty property and Winsome Resources’ (ASX:WR1) Adina project.
It comprises 29 mining claims covering about 14.91km² which sit adjacent to Winsome’s Tilly Project and Loyal Lithium’s (ASX:LLI) Trieste Project.
Comet says the Mercator Project shares several geological similarities to Tilly with little historical exploration completed to date.
The Monarch Project, meanwhile, comprises 39 mining claims covering roughly 20.61km² surrounded by Cygnus Metals’ (ASX:CY5) Auclair Project.
The project is located along a trend of recent pegmatite discoveries, located 60km northeast of the Whabouchi lithium mine owned and operated by Arcadium Lithium (ASX:LTM).
Monarch is also just 1km from Cygnus’ Auriga discovery, which has returned grades of up to 6.5% lithium, and also on trend with the Pegasus pegmatite discovery on Cygnus’ Auclair Project, which returned a hit of 43.7m @ 1.15% lithium below 10m of glacial overburden.
Comet says recent results at Auriga cover a strike length of 1.9km, with multiple parallel pegmatites intersected and mineralisation remaining open in all directions under shallow glacial cover.
The Elmer East Project is covered by 32 mining claims spanning around 16.7km², located 20km southwest of Arcadium’s Galaxy Project and directly north of Azimut Exploration’s (TSX:AZM) Wapatik Project, where eight multi-kilometre target areas have been uncovered.
Comet notes that these prospects at Wapatik include at least 30 distinct outcropping targets likely corresponding to pegmatites, with several anomalous in lithium, cesium and tantalum (LCT) and other associated pathfinder elements.
The acquisition is subject to regulatory approval, including from the TSX Venture Exchange, with completion slated for the third quarter of this year.
Comet, which has a market capitalisation of C$7.5 million ($8.1 million), also owns the Liberty Project, which is the company’s flagship asset.
Write to Angela East at Mining.com.au
Images: Comet Lithium
