Green Technology Metals (ASX:GT1) has signed a binding option agreement to purchase an 80% interest in the Junior Lake Project in Canada from Landore Resources (LON:LND).
The company says Junior Lake comprises 591 staked mineral claims on 109km-square of tenure located about 22km from Green Technology Metals’ flagship Seymour Project.
The project also hosts 3 drill-ready lithium-caesium-tantalum (LCT) pegmatite prospects identified from previous exploration, which indicates the project’s lithium potential. These targets are the Despard, Swole Lake, and Tape Lake targets, which Green Technology Metals says hosts similar geology to Seymour.
Commenting on the option agreement, Green Technology Metals Chief Executive Officer (CEO) Luke Cox says: “We are excited to secure the agreement with Landore, adding a sizeable tenement package to our portfolio and look forward to commencing exploration on the Junior Lake Project which offers the company a unique combination of a close proximity location, identified targets through previous regional exploration and early indications of similar geology to our flagship Seymour Project.
We plan to commence exploration activities imminently at Junior Lake as we look to grow our resource base for greater Seymour and move swiftly into development.”
“We plan to commence exploration activities imminently at Junior Lake as we look to grow our resource base for greater Seymour and move swiftly into development”
As part of the agreement, Green Technology Metals will pay an option fee of CAD$500,000 to Landore within 5 days of executing the option agreement.
Following this, Green Technology Metals will be required to pay an additional CAD$3.5 million in a combination of cash and fully paid ordinary shares through 3 milestone payments.
The first payment of CAD$500,000 is to be paid to Landore on or before 12 months after the effective date, while the second payment of $500,000 and $500,000 in cash or fully paid ordinary shares based on a 20-day volume weighted average price (VWAP) is required to be paid 24 months after the effective date.
The final payment of CAD$1 million and $1 million in cash or fully paid ordinary shares based on a 20-day VWAP will be required 36 months after the effective date.
Subject to Green Technology Metals satisfying these payments on or before the deadline, Landore will then be required to transfer the 80% option interest to Green Technology Metals.
Following this both companies will be associated into an unincorporated joint venture (JV) with Green Technology Metals holding 80% interest, and Landore holding a 20% interest which will be free carried through to the completion of a Feasibility Study.
Green Technology Metals reports this JV will form an initial management committee composed solely of representatives from Green Technology Metals which will determine and set overall policies, objectives, procedures, and actions for conducting the JV. After completing a Feasibility Study, the management committee will consist of 5 representatives appointed in proportion to each company’s percentage interest in the JV.
If Landore’s interest in the project decreases to below 10%, its JV interest will be converted into a 2% net smelter royalty (NSR) and Green Technology Metals will become the sole owner of Junior Lake. Green Technology Metals will also have the option to repurchase and extinguish 1% of the NSR by paying Landore CAD$1.5 million at any time up to the 2-year period following the declaration of commercial production.
Green Technology Metals will also assume and be bound to satisfy the existing 2% NSR and obtain rights to repurchase 1% of the existing royalties upon paying CAD$1 million, which is over the Swole Lake Project.
Green Technology Metals reports it plans to undertake a 2-phase exploration program at Junior Lake beginning in June 2023. Phase one exploration will initially consist of geological mapping and sampling of the Despard and Swole target areas to identify additional drill targets.
This will be followed up by a phase two maiden 1,200m diamond drilling program initially focusing in the Despard target area. This exploration program is anticipated to be completed by Q4 2023.
Concurrently with the exploration program at Junior Lake, the company will also be undertaking an exploration program including geological mapping of the North Seymour and Falcon project areas.
The Junior Lake Project is located about 235km north-northeast of Thunder Bay in Ontario, Canada. The Caribou Lake-O’Sullivan greenstone belt traverses the project from east to west for about 31km.
Images: Green Technology Metals Ltd
