Diversified miner Intra Energy Corporation (ASX:IEC) has completed a $3.6 million capital raise to begin exploring its new Llama Lithium Project in Quebec, Canada.
Under the placement, first announced on 18 May 2023, the $6.48 million market capitalisation company reports it has issued 720 million shares at $0.005, including a 1-for-2 free-attaching option exercisable at $0.15 within 24 months.
Intra Energy says it intends to begin exploration at Llama immediately, with a detailed mapping and sampling campaign set to begin in the second half of 2023. The company will also use high-resolution aerial imagery and magnetics to define ‘high-quality’ targets.
Subject to approvals, diamond drilling will be used on the targets identified through the mapping and geochemical sampling campaign.
Shares in Intra Energy have spiked 25% to match the placement price of $0.005 as of 11:40am on Wednesday morning.
The Llama Lithium Project lies in the James Bay region of Quebec, Canada, and covers 123 mineral claims over 63km-square of the Dalmas and Escale formations.
While no historical geological exploration has been recorded on the project, the company says DG Resource Management identified Llama as being prospective for lithium after reviewing pegmatite occurrences within the greenstone rocks throughout the region, with the appropriate indicator mineralogy for hosting spodumene-bearing pegmatites.
Although ‘significant’ discoveries of lithium at projects close to Llama demonstrate the exploration potential of the James Bay region and inform Intra’s exploration programs moving forward, the company notes this does not confirm Llama will host such mineralisation.
Intra Energy Corporation is a diversified mining and energy group focused on finding battery, base, and precious metals across its Llama Lithium Project in Canada and the Yalgarra Project in Western Australia.
On 18 May 2023, the company entered into an agreement to acquire Llama from DG Resource Management for CAD$950,000, 195 IEC million shares, 97.5 million options, and 150 million performance rights.
Write to Harry Mulholland at Mining.com.au
Images: Intra Energy Corporation Ltd