Base and precious metal developer Redstone Resources (ASX:RDS) has secured an exclusive option to acquire 2 lithium projects in the ‘prolific’ James Bay Lithium District in Québec, Canada.
The company says both the Radisson East and Sakami Lithium projects have a combined land area of 90km-square and cover more than 50km of ‘highly prospective’ greenstone belt with coincident lithium-in-lake anomalism.
Redstone Resources will also move forward with an inaugural field program for the current Canadian summer field season. The field program will test and confirm several of the targets for their potential to contain lithium mineralisation.
Redstone reports the newly acquired projects host numerous known advanced lithium projects and new lithium discoveries, as well as several known pegmatite occurrences and outcrops.
Redstone notes the acquisition further complements its portfolio of battery mineral projects at Attwood Lake in Ontario, and its West Musgrave Copper Project in Western Australia.
This acquisition is part of Redstone’s strategy to increase its battery minerals exposure and explore for commodities with growing demand.
Redstone states the agreement has been executed with Oliver Friesen (the optionor) in order to acquire a 100% undivided legal and beneficial interest in 177 unpatented mining claims which are filed with the Ministère des Ressources Naturelles et des Forêts (the MENR), situated within the Province of Québec.
Key terms of this agreement include 25 million fully paid ordinary shares in the capital of the company being issued to the optionor and other named persons. The optionor will also enter into, and must procure each of the other holders to enter info, an escrow agreement in respect of at least 50% of the shares comprising the initial payment for a period of 6 months.
Other terms include a cash payment of $75,000 45 days from the date of signing of the agreement, as well as 2 additional cash payments of $250,000 on the first and second anniversary dates of the signing.
Speaking on the acquisition, Redstone Resources Chairman Richard Homsany says: “We are pleased to add these highly prospective lithium projects to our portfolio and take a significant position within the prolific James Bay Lithium district in Québec, Canada, a tier one mining jurisdiction. The Projects cover over 50km of greenstone belt strike length, which is geology that is known to host spodumene‐bearing pegmatites throughout the world class James Bay Lithium district.
“We are pleased to add these highly prospective lithium projects to our portfolio and take a significant position within the prolific James Bay Lithium district in Québec”
Greenstone belts are the key host geology at each high‐grade lithium project nearby including Corvette, Cancet and the Mia Lithium Project. This acquisition, in addition to the Attwood Lake Lithium Project in Ontario and the Company’s 100% owned West Musgrave Copper Project in Western Australia, positions Redstone well to explore for minerals that will be in growing demand for the battery supply chain.”
Redstone Resources is a developer exploring its wholly owned prospective West Musgrave Project, including the Tollu Copper deposit in Western Australia, as well as its Attwood Lake Lithium Project in Ontario, Canada.
The Radisson East Lithium Project comprises 2 claim packages covering 43 individual mineral claims totalling 21.9km-square and is considered prospective for lithium mineralisation.
The Sakami Lithium Project comprises 3 claim packages covering 134 individual mineral claims totalling 67.8km-square. Both projects are located in the James Bay region of west-central Québec, Canada.
Redstone Resources had $323,000 cash on hand at the end of 31 March 2023, as reported in its latest quarterly report released on 28 April 2023.
Write to Adam Drought at Mining.com.au
Images: Redstone Resources Ltd