Diversified critical minerals exploration company Cygnus Metals (ASX:CY5) is set to expand its Canadian-based exploration portfolio with the acquisition of the Sakami Project in the James Bay region of Quebec.
The company says the 118km-square project, which is currently held by Canadian Mining House, will increase its total ground coverage within the prospective region to 756km-square across 4 projects. This acquisition is also expected to establish Cygnus as a ‘major’ James Bay lithium explorer.
Cygnus notes Sakami is located only 44km west of Patriot Battery Metals’ (ASX:PMT) Corvette Project, which is host to the ‘outstanding’ CV5 discovery. The project is also situated directly adjacent to Winesome Resources’ (ASX:WR1) Cancet Project, which represents another ‘significant’ discovery.
Exploration undertaken on the project to date is reported to have been limited, with the only drilling completed on the property being for gold and base metals in 1976, which comprised 5 diamond drillholes. No specifically targeted lithium exploration has been recorded to date.
Key terms of the acquisition for the Sakami project include Cygnus paying the vendors a cash payment of CAD$300,000 and 3.45 million fully paid ordinary shares. The company is also expected to incur exploration expenditure to the amount of CAD$1 million within the first 36 months of closing the option agreement.
As of 12:50pm AWST Cygnus Metals’ share price had increased by 16.22%.
The company has also increased the ground position of its Auclair Project to 337km-square with the acquisition of the Beryl Project, which represents a 12-fold increase from the original acquisition from Osisko Development.
Historic drilling undertaken at Auclair returned a visual intersection of 11m of spodumene-bearing pegmatites, presenting an ‘exceptional’ opportunity for the company to conduct the first ever lithium focussed exploration program at the expanded project.
Details of the acquisition for Beryl include Cygnus paying the vendors a cash payment of CAD$395,000 and issuing 4 million fully paid ordinary shares. Cygnus is also expected to incur the same exploration expenditure as reported at Sakami.
In addition, Cygnus reports it will grant a 2% net smelter royalty on both projects payable to CMH.
However, both acquisitions are subject to Cygnus obtaining shareholder approval.
Addressing the acquisition, Cygnus Metals Managing Director David Southam says: “Cygnus has established an enviable land holding in the tier-one lithium district of James Bay in Canada, being one of the hottest lithium exploration districts in the world.
We have already established the presence of extensive spodumene-bearing pegmatites and we are on track to publish a maiden resource in the middle of this year.
“We have already established the presence of extensive spodumene-bearing pegmatites and we are on track to publish a maiden resource in the middle of this year”
The Sakami project provides us exposure to the same belt as Patriot’s and Winesome’s major discoveries while Auclair gives us a secondary advanced project with lithium minerals already identified in drilling.
The next 12 months is going to be an exciting time for the company, with three diamond drill rigs operating to ensure we maximise our ability to create shareholders value.”
Cygnus Metals is an ASX-listed exploration company focused on advancing its James Bay and Western Australia-based exploration portfolios. Both the Sakami and Beryl projects are located in the ‘world-class’ James Bay lithium district of Quebec, Canada and are described as having ‘excellent’ infrastructure with year-round road access.
Images: Cygnus Metals Ltd
