- Cygnus Metals (CY5) acquires two “highly prospective” projects in the James Bay region of Quebec, Canada
- The new acquisitions come from Canadian Mining House and include the Sakami and Auclair projects
- The two new projects will bring CY5’s total ground coverage to 756 square kilometres across four projects, establishing Cygnus as “one of the major lithium explorers” in the region
- Cygnus Managing Director David Southam says the next 12 months will be an “exciting time” for the company
- Cygnus Metals shot up 21.62 per cent to close at 22 cents on Monday afternoon
Cygnus Metals (CY5) shares have soared after the company announced the acquisition of two “highly prospective” projects in the James Bay region of Quebec, Canada.
The new acquisitions come from Canadian Mining House and include the Sakami and Auclair projects. Cygnus said the new purchases would establish the company as “one of the major lithium explorers” in the region.
CY5 said the purchase would bring its total ground coverage to 756 square kilometres across four projects, with the two new sites offering “excellent infrastructure” with year-round road access.
The Sakami project includes 231 claims and spans 118 square kilometres. The region remains largely under-explored, with very little work completed to date.
To earn a 100 per cent interest in Sakami, Cygnus must make a C$300,000 (A$328,700) cash payment and hand over 3.4 million fully paid ordinary shares to the sellers.
Additionally, Cygnus will incur exploration expenditure to the amount of C$1 million within the first 36 months of closing the option agreement.
The Auclair project comprises 589 claims and includes a visual intersection of 11 metres of spodumene-bearing pegmatites. The project will cost Cygnus C$395,000 cash plus four million fully paid ordinary shares.
Both acquisitions are subject to shareholder approval.
“We have already established the presence of extensive spodumene-bearing pegmatites, and we are on track to publish a maiden resource in the middle of this year,” Cygnus Managing Director David Southam said.
“The Sakami project provides us exposure to the same belt as Patriot’s and Winsome’s major discoveries, while Auclair gives us a secondary advanced project with lithium minerals already identified in drilling.”
The MD said the company’s next 12 months will be an “exciting time”, with three diamond drill rigs in operation.
Cygnus Metals shot up 21.62 per cent to close at 22 cents on Monday afternoon.