Narryer Metals (ASX:NYM) has entered into an agreement with Highway Lithium to acquire a 70% interest in 2 lithium-tantalum focused projects, namely the Big Hill and Fran projects, in the Northwest Territories, Canada.
The company’s share price had soared 114.285% to $0.060 as of 1pm AEDT this afternoon (12 March 2024) on the back of the announcement.
Assuming the acquisition gains the requisite approvals, Narryer plans to kick off drill permitting and prepare for fieldwork once the field season begins around May this year.
Field work activities will include a diamond drilling program.
As part of the agreement, in consideration for an exclusivity period, Narryer has agreed to pay a $50,000 cash payment, issue 2.5 million fully paid ordinary shares in the company, as well as 2.5 million options exercisable at $0.10 each on or before 31 December 2026 to Highway Lithium.
In consideration for the acquisition, Narryer will pay a $50,000 cash payment, 12.5 million fully paid ordinary shares in the company, and a 1.5% net smelter return royalty (NSR) from revenue generated from lithium production, as well as 2.5% from revenue generated from minerals other than lithium.
The company reports if a Bankable Feasibility Study (BFS) is completed on either project, then Highway shareholders have the option to fund their expenditure commitments pro-rata or convert their remaining 30% of the issued capital into a royalty in addition to the existing royalty, of a 1% NSR from revenue generated from lithium production.
Managing Director Gavin England says the company sees the future of hard rock lithium exploration in northern Canada.
“The Big Hill Project area contains spodumene-bearing pegmatites identified along strike from mineralisation currently being drilled by Canadian-listed Li-FT Power (CVE:LIFT) at its BIG Lithium Project.
The Big Hill mineral claims have drill ready targets, which with our ongoing lithium exploration in Ontario and Quebec, will provide Narryer with an exciting 2024 exploration season.
We will also investigate the exploration potential of the Fran Project, which contains the Riber Pegmatite, with historic high-grade tantalum samples.”
Both projects contain mapped lithium-caesium-tantalum (LCT) pegmatites with the potential to host ‘significant’ lithium and tantalum mineralisation and cover a 98km-square area.
Further, Narryer received binding commitments to conduct a placement to raise $1.050 million through the issue of about 26.250 million new fully paid ordinary shares at $0.04 per share.
Morgans Corporate acted as lead manager to the placement.
The funds will be used towards undertaking further exploration work at the Big Hill and Fran projects, following completion of the acquisition.
Narryer Metals is a critical minerals explorer focused on its assets in Canada and Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Narryer Metals
