- Recharge Metals (REC) enters a binding agreement to snap up a full interest in the Express lithium project in Canada
- The project comprises 139 mineral claims over two contiguous blocks within the prolific James Bay region of Quebec
- It hosts several known pegmatite outcrops and lies roughly 12 kilometres southeast of Allkem’s (AKE) James Bay lithium deposit
- Recharge will undertake a share placement to raise $2.5 million to fund the acquisition and its planned exploration efforts over the next 12 months
- REC shares are soaring 34 per cent higher to 15 cents at 11:17 am AEDT
Recharge Metals (REC) has entered a binding agreement to acquire a full interest in the Express lithium project in Canada.
The project contains 139 mineral claims over two contiguous blocks within the prolific James Bay region of Quebec. It hosts several known pegmatite outcrops.
It lies nearby Allkem’s (AKE) James Bay deposit, Cygnus Metals’ (CY5) Pontax lithium project and other significant lithium deposits.
As part of the purchase deal, Recharge will pay DG Resource Management, the vendor of the project, C$250,000 (A$270,000) in cash, 22.5 million ordinary REC shares and up to 22.5 million performance rights in return for the Express project.
REC will also issue just under 6.2 million options, exercisable at 20 cents and expiring in three years.
Recharge Metals Managing Director Felicity Repacholi-Muir said it was exciting to acquire a slice of the “world-class” lithium province.
“James Bay is emerging as a world-class lithium province, with the Express lithium project located right at the heart of it and surrounded by significant lithium resources and discoveries,” Ms Repacholi-Muir said.
“We look forward to unlocking the lithium potential at Express with the expertise and input of the highly respected Dahrouge Geological Consulting team, who, importantly, are based in the region.”
DG Resource Management holds an 18.8 per cent stake in Recharge and will continue to hold its exposure to Express following the acquisition.
Recharge the project benefitted from “excellent” infrastructure, including sealed road access, hydropower, well-established towns and airports.
Recharge will now undertake a $2.5 million share placement to raise funds for the acquisition and exploration activities throughout the course of the next 12 months.
REC shares were soaring 34 per cent higher to 15 cents at 11:17 am AEDT.