High-Tech Metals (ASX:HTM) has entered into agreements to acquire both the Norpax deposit and Reynar Lake Project in Ontario, Canada.
The company reports these acquisitions will ‘significantly’ increase its exposure to nickel sulphides within its Werner Lake Cobalt Project area, as well as to other battery metals such as copper and cobalt.
High-Tech says it plans to build on the recent exploration success at its Werner Lake project by immediately getting underway with planning exploration on the newly acquired projects.
As part of the acquisition High-Tech will review all available geological data, as well as prepare a sampling program of known mineral occurrences on the projects in conjunction with reconnaissance geological mapping.
To acquire Norpax, the company has entered into an agreement with Tribeca Nominees and Rare Capital, in which High-Tech will pay the vendors $125,000 in cash, and pay an additional $30,000 in cash for previous work undertaken.
The company notes its option agreement to acquire Reynar Lake from Michael Thompson, it will reimburse the assignor of the option (Rai Rajan) an initial option fee of CAD$10,000, and will also issue an additional AUD$5,000 worth of options in the company.
If the company chooses to exercise the option following due diligence, High-Tech will pay Thompson CAD$75,000 on or before 8 November 2023, and an additional CAD$100,000 as reimbursement for exploration expenditure already incurred by Thompson.
Subject to exercising of the option, High-Tech will enter into an agreement with Fladgate Exploration Consulting to perform any and all mineral exploration services for a period of 3-years.
Other terms of the Reynar acquisition include High-Tech paying a 1% net smelter royalty to Thompson upon the start of commercial production.
Commenting on the acquisition, High-Tech Metals Executive Director Sonu Cheema says: “We are excited by the acquisition of Norpax and the option over Reynar Lake with the potential for a nickel discovery in a historic nickel producing province of Canada. Not only do the acquisitions increase our exposure to nickel, but it also increases the company’s landholding substantially making High-Tech one of the largest landholders in the area.
As the projects lay in the area of Werner Lake, the company’s geological team are familiar with the geological setting. This has been recently proven by the company’s discovery of high-grade samples of nickel sulphide (that exceeded assay detection limits) in the Werner Lake Project.
The company plans to utilise its expertise in the area by undertaking a review of all available geological data, performing a systematic geochemical sampling program of known mineral occurrences on the projects in conjunction with reconnaissance geological mapping and relog and assay all known and available core.”
High-Tech Metals is a battery metals-focused explorer and developer working on its wholly owned flagship Werner Lake project in northwest Ontario, Canada.
The Norpax Nickel Sulphide deposit lies 1km west of Werner Lake and has a historical non-JORC compliant resource of 1.010 million tonnes (Mt) at 1.2% nickel and 0.5% copper.
Reynar Lake immediately adjoins Werner Lake and is considered prospective for nickel, copper, and cobalt. This project, if the option is exercised, will provide High-Tech with additional landholding to potentially increase its cobalt resource and explore for additional nickel sulphide mineralisation.
Write to Adam Drought at Mining.com.au
Images: High-Tech Metals
