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- Critical Resources (CRR) completes acquisition of the Mavis Lake Lithium Project in Canada from Essential Metals (ESS) and the International Lithium Corporation (ILC)
- CRR is acquiring 100 per cent of the project, totalling 2544 hectares and six contiguous mining leases
- The cash-and-stock deal with Essential Metals and ILC is worth approximately $1.5 million in cash which is to be split evenly
- Essential plans to use the funds generated from the sale to focus its efforts on its West Australian lithium and gold projects
- Critical Resources is up 26.8 per cent to 5.2 cents while Essential Metals is in the grey at 22 cents
Critical Resources (CRR) has completed its acquisition of the Mavis Lake Lithium Project in Ontario, Canada from Essential Metals (ESS) and the International Lithium Corporation (ILC).
CRR is acquiring 100 per cent of the project, totalling 2544 hectares and six contiguous mining leases.
In late October 2021, ESS and ILC as joint venture partners announced the divestment of the project, of which ESS owned 51 per cent.
The cash-and-stock deal with Essential Metals and ILC is worth approximately $1.5 million in cash which is to be split evenly, with another $3 million milestone payments, also to be split between the two parties.
ESS and ILC will split $1.5 million fully ordinary paid shares (calculated at $0.022 a share) for 68,000,000 fully ordinary paid shares in Critical Resources 50/50.
Essential plans to use the funds generated from the sale to focus its efforts on its West Australian lithium and gold projects with the advancement of the Pioneer Dome Lithium Project in WA’s Eastern Goldfields of high priority.
“We are very excited to complete the acquisition of the Mavis lake lithium project,” said Critical Resources Managing Director Alex Biggs.
“We have no doubt that the Project will add significant value to the business moving forward. Our strategy in 2022 is to begin exploration drilling as soon as possible once permitting is completed. We have multiple targets to explore with a view to achieving, over time, the milestones set out by the vendors of 5.0 million and 10.0 million tonnes.”
Previous drill programs have yielded high-grade lithium oxide (Li2O) intercepts including 55.25m at 1.04 per cent Li2O from 80.75m in drill hole MF18-53.
The company now plans to complete diamond drilling across the Mavis Lake tenements, initially focused on the Fairservice and Pegmatite 18 prospects. As more targets are identified both across the tenements and at depth further drilling will be deployed.
There are no weather restrictions as to when drilling can begin, and the company intends to commence exploration diamond drilling as soon as possible.
Critical Resources is up 26.8 per cent to 5.2 cents while Essential Metals is in the grey at 22 cents.
