Summit Minerals (ASX:SUM) inks option agreement to acquire 80pc of Castor project, Canada

• Summit Minerals (SUM) is one of the latest ASX-listed companies to set up shop in the prolific James Bay lithium district of Quebec
• Under a binding option agreement, Summit will acquire 80 per cent of the Castor lithium project
• The landholding is more than 118 square kilometres and straddles the northern end of the Yasinski Lake Greenstone Belt
• Two notable other Australian players in the James Bay region are Patriot Battery Metals (PMT) and Allkem (AKE)
• Summit shares closed 3.13 per cent higher, trading 16.5 cents at market close

Summit Minerals (SUM) is one of the latest ASX-listed companies to set up shop in the prolific James Bay lithium district of Quebec, Canada.

Under a binding option agreement, Summit will acquire 80 per cent of the Castor lithium project from two entities; DG Resource Management and individual Kal Malhi.

The company will hunt for spodumene at Castor and, if the hunt is successful, move ahead to a drill onsite.

The landholding is more than 118 square kilometres and straddles the northern end of the Yasinski Lake Greenstone Belt.

Contained within the project boundaries is potentially 33 kilometres of strike length of the same greenstone formation. The project already hosts several known mapped pegmatites, a type of rock often coincident with lithium mineralisation.

Castor sits nearby major infrastructure, including transmission lines to and fro a hydropower development, potentially allowing Summit to benefit from ESG credentials.

Two notable other Australian players in the James Bay region are Patriot Battery Metals (PMT) and Allkem (AKE).

DG Resources, handing off majority ownership of Castor to Summit, is the same entity that gave Patriot Battery Metals its flagship Canadian acreage. Kal Malhi is an entrepreneur from a firm called Bullrun Capital.

Drilling activities for the year ahead are fully funded by a $1.5 million placement.

A third-party geological services firm will conduct a summer field exploration run during the northern summer, should conditions allow.

Summit shares closed 3.13 per cent higher, trading 16.5 cents at market close.