Critical Resources (ASX:CRR) has satisfied the condition precedent for the binding purchase and sale agreement with TSX-V listed Power Metals Corp (TSX-V:PWM) to acquire its Gullwing-Tot Lakes property.
The Gullwing-Tot Lakes property, along with the Mavis Lake Lithium Project and recently staked ground, will form an enlarged contiguous project area of some 30km long and 9.5km wide, with a total area of 22,984 hectares (Mavis Lake Project area).
The entire Mavis Lake Project area lies within the prospective Sioux Lookout Domain in the Wabigoon Subprovince. Works so far identifies 2 pegmatites that were subjects of historical exploration efforts by Power Metals.
Gullwing-Tot Lakes is located in Drope and Webb townships, 30km northeast of Dryden, Ontario, and approximately 5.5km northeast of the Mavis Lake ‘Main Zone’ where the Company has been successfully drilling for lithium since April 2022.
Historical exploration completed by Power Metals centred on 2 outcropping pegmatites (Gullwing Lake and Tot Lake), delivering results up to 6.78% Li2O, historical exploration has also discovered high-grade results for tantalum and cesium.
Historical exploration completed by Power Metals centred on 2 outcropping pegmatites
With its location, the Gullwing-Tot Lakes property, like Mavis Lake, has ‘excellent’ and immediate access to national level road and rail infrastructure, hydropower and support services from the town of Dryden.
The purchase and sale agreement executed between the company and Power Metals on 16 December is binding on both parties. The agreement was subject to completion of due diligence requirements, which has now been completed.
The company will now administer the cash and share payment requirements to acquire a 100% interest in the mining claims, being:
- A cash payment of CAD$600,000 ($656,000) made to Power Metals (or nominee); and
- Issue of CAD$600,000 ($656,000) of deemed value in the company’s securities to Power Metals (or nominee).
The company will also grant Power Metals a 1% gross margin royalty for mineral production within the mining claims acquired by the company.
Critical Resources reports it is anticipated that exploration efforts will commence in the Canadian summer, focused principally on mapping and geochemical field work to develop and refine future drilling targets.
Initial efforts will centre on the Gullwing and Tot Lakes pegmatites.
Critical Resources will leverage its existing exploration team and contractors supporting Mavis Lake in order to complete efforts at the Gullwing Tot Lakes property.
Write to Adam Orlando at Mining.com.au
Images: Critical Resources Ltd & iStock
