North America-focused exploration company Megado Minerals (ASX:MEG) has completed the acquisition of the Cyclone Lithium Project in Quebec, Canada.
Under the transaction, Megado made a cash payment of CAD$250,000 and issued 45 million fully paid ordinary shares to Canadian company DG Resource Management as part of the consideration. Some 10% of the consideration shares will be freely tradeable from the date of issue, while 45% will be subject to a 6-month escrow period, and the remaining 45% will be subject to a 12-month escrow period.
Megado also issued 7 million options to acquire fully paid ordinary shares in the capital of the company to the vendor exercisable at a $0.10 on or before the date that is 3 years after the date of issue, along with a 2% net smelter royalty (NSR) over minerals extracted from the project.
Now that the Cyclone acquisition is complete, Megado reports it is currently conducting additional remote sensing work, using high-resolution satellite imagery and detailed topography to perform a structural analysis of the project. A recent analysis of hyperspectral imagery also identified 415 potential lithium-bearing pegmatite targets within the project area.
A recent analysis of hyperspectral imagery also identified 415 potential lithium-bearing pegmatite targets within the project area
The company says existing datasets including government mapping, and high-resolution geophysics will also be reviewed in combination to determine possible controls to pegmatite mineralisation, influence of glaciation, and morphology versus host rock controls, and prospectivity of the target areas to develop a probabilistic ranking of targets that will aid initial fieldwork and follow-up drill targeting.
Megado reports logistics planning is currently underway with on the ground reconnaissance starting as soon as practical, subject to snow cover.
Megado Minerals is an ASX-listed mining company that currently holds the North Fork Rare Earth Project in Idaho, US, and the Cyclone Lithium Project in the James Bay region of Quebec, Canada.
Images: Megado Minerals Ltd
