Targa Exploration, a Vancouver-based mining company, has reached an agreement to acquire a 100% stake in five lithium exploration projects in Canada.
The company will acquire a portfolio of projects located in the provinces of Quebec and Ontario with a total area of around 137,000 hectares (ha). With the acquisition, Targa’s total portfolio in Canada will grow to 412,000ha.
Of the five projects, three will be located in Ontario and two in Quebec.
The three projects in Ontario are Case Lake, Detour West and Lakeshore.
Consisting of 185 claims cells, Case Lake covers an area of around 3,800ha and sits on the edge of Case Lake Batholith. The project has known lithium occurrences and has been intercepted with pegmatites.
Detour West has two blocks with 255 claim cells and covers 5,300ha. Six holes drilled at the project site have been intercepted with pegmatites.
The Lakeshore project spans around 4,000ha and consists of 191 claim cells.
Besides historic gold exploration, the project has been intercepted with Anomalous beryllium and caesium. Pegmatites were discovered previously but have not been analysed for lithium.
The other two projects in Quebec include Pegmatite Beach, a project covering 97,571ha with pegmatite-bearing geology. There is a trend of lake sediment lithium anomalies.
Harricana is the fifth project. Covering 26,339ha, it is located in the Northern Abitibi region of Western Quebec. The project has a presence of beryl-bearing pegmatite dykes.
For the acquisition, Targa will issue 7.5 million of its shares to the sellers and grant a 1% net smelter royalty.
It also agreed to pay C$755,721.72 ($550,574) in cash including C$100,000 within two days of signing the agreement, C$277,860.86 to be paid within 30 days of the agreement and C$377,860.86 on or before 15 December this year.
The company is also forming a new advisory board with Inventa Capital chairman and co-founder Craig Parry, Discovery Group co-founder and principal John Robins and Luminex Resources exploration senior vice-president Leo Hathaway.
Targa president and CEO Cameron Tymstra said: “This exciting acquisition will be adding a considerable package of prospective ground assembled by John and Leo to our already strong portfolio and is in line with our strategy of going after large land packages in favourable districts with key indicators of lithium pegmatite geology.
“I am humbled by Craig, John and Leo’s decision to join our strategic advisory board as the extensive amount of experience, knowledge and discovery success that they bring to the table will be immensely valuable to Targa going forward and will help the company to prioritise, plan and execute on our ongoing and future exploration programmes.”
