Intra Energy (ASX:IEC) shares soar on project acquisition in Canada’s prolific James Bay region

• Intra Energy Corporation (IEC) surges 60 per cent off the back of acquiring the Llama lithium project in the prolific James Bay region of Quebec, Canada
• IEC inked a binding agreement with DG Resource Management (DGRM) to acquire the project, comprising 123 mineral claims across 63 square kilometres
• The company announced it secured $3.6 million through a conditional share placement to fund the acquisition and initiate exploration activities
• Once the acquisition is complete, IEC will kick off exploration activities, which include a detailed geological mapping and sampling campaign
• IEC shares are up 60 per cent and trading at 0.8 cents at 3:19 pm AEST

Shares in diversified miner, Intra Energy Corporation (IEC), have soared 60 per cent in midday trade after the company announced it agreed to acquire the Llama lithium project, located in the prolific James Bay region of Quebec, Canada.

IEC inked a binding agreement with DG Resource Management (DGRM) for complete ownership of the project, comprising 123 minerals claims across 63 square kilometres.

The project also resides 40 kilometres from Winsome Resources’ (WR1) Adina project and 120 kilometres from TSX-listed Patriot Battery Metals’ Corvette project, in a region that is rapidly becoming known for hard rock lithium exploration.

To fund the acquisition and begin exploration, IEC announced it received firm commitments from sophisticated and professional investors, raising $3.6 million through a conditional share placement.

However, in terms of the deal, the company will need to fork out $1 million (C$950,000) in cash, plus 195 million IEC shares, 97.5 million options and 150 million performance rights vesting into shares.

“The acquisition of Llama provides IEC with a significant footprint in the James Bay Lithium District, Quebec,” DGRM President Jody Dahrouge said.

“With negligible historic exploration for spodumene pegmatites, Llama is situated in a favourable geologic setting with very good potential.”

IEC Managing Director Benjamin Dunn said the purchase with DGRM gave the company “confidence” in the project’s potential.

“DGRM has a remarkable track record of identifying successful projects in the region,” he said.

Once the acquisition is complete, IEC aims to kick off exploration activities, which include a detailed geological mapping and sampling campaign, followed by the use of high-resolution aerial imagery and magnetics to define high-quality targets.

Diamond drilling will then be carried out on the identified targets, subject to approvals.

IEC shares were up 60 per cent and trading at 0.8 cents at 3:19 pm AEST.