Junior explorer Rubix Resources (ASX:RB6) has joined the throng of hopeful miners looking to unearth lithium in Canada’s prolific James Bay region.
The company has struck a binding deal with Canada-based exploration specialist DG Resource Management (DGRM) to take full control of the Ceiling Lithium Project in Quebec for a mix of cash and scrip.
Under the terms of the deal, Rubix will buy DGRM’s 101 mineral claims comprising the Ceiling Lithium Project for $200,000 in cash and 12.5 million RB6 shares. Rubix will also issue to the sellers 15 million share options, exercisable at $0.20 and expiring on 16 June 2025.
Further, Rubix will grant DGRM a 2% net smelter royalty on all minerals produced and sold from the Ceiling Lithium Project, and DGRM could also receive up to 25 million performance rights over two tranches based on Rubix’s exploration success.
Rubix shares spiked following the news of the deal, closing 50% higher at $0.27 on 24 May.
To help fund the purchase and its subsequent exploration plans, Rubix has tapped private investors for $1.96 million via a share placement under which the company will issue 14 million new shares at $0.14 per share.
As part of the purchase agreement, Rubix has employed DGRM to act as a consultant for the project and provide on-the-ground expertise during upcoming fieldwork and target definition.
A portion of the capital raise will be used to pay for DGRM’s services.
Commenting on the acquisition, Rubix Exploration Manager Casey Blundell says: “The acquisition of the Ceiling Lithium Project represents an enormous opportunity for Rubix shareholders in the world-class lithium jurisdiction of James Bay.
“The acquisition of the Ceiling Lithium Project represents an enormous opportunity for Rubix shareholders in the world-class lithium jurisdiction of James Bay”
We are very excited by the scale and potential of the project — over an impressive 25 km strike-length of the inferred Wemindji Greenstone Belt — and look forward to working with James Bay lithium experts DGRM, to getting on the ground immediately to conduct initial exploration activities with an aggressive goal of commencing a maiden drill program later this year.”
The purchase and accompanying Rubix capital raise remain subject to shareholder and regulatory approvals, as well as financial and legal due diligence. Rubix says it expects the transaction to be completed on or around 14 July 2023.
Rubix Resources is based in Perth and primarily focused on its Australian base metal and gold asset portfolio. The company owns the Lake Johnston and Collurabbie North projects in Western Australia and the Etheridge and Parperbark projects in Queensland.
The Ceiling Lithium Project in James Bay, Quebec, lies in the same district known to host several ‘significant’ assets, including Patriot Battery Metals’ (ASX:PMT) Corvette Property, Allkem’s (ASX:AKE) James Bay Deposit, and Nemaska’s (TSE:NMX) Wabouchi Deposit.
Write to Joshua Smith at Mining.com.au
Images: Rubix Resources Ltd
