Comet Lithium has signed a purchase and sale agreement with Troilus Gold to acquire three prospective lithium projects in the James Bay region of Canada.

The three projects are Mercator, Monarch and Elmer East.

As per the agreed terms, Comet Lithium will issue 1,500,000 common shares to Troilus Gold upon closing the transaction.

Additionally, Troilus Gold will be granted a 24-month participation right to partake in equity financing to maintain its share percentage in Comet Lithium, subject to holding a minimum of 750,000 common shares at the time of financing.

The agreement also stipulates that Comet Lithium grants a 2% net smelter royalty (NSR) on each project, with the option to buy back 1% for $3m (C$4.11m).

Completion of the deal is expected in Q3 2024, contingent on regulatory approvals, including from the TSX Venture Exchange.

The Mercator Project, situated 40km south-east of Comet's Liberty property and adjacent to Winsome Resources' Adina project, spans 14.91km² with 29 mining claims.

It lies next to Winsome Resources' Tilly Project and Loyal Lithium's Trieste Project in a geologically favourable area for lithium-cesium-tantalum pegmatites.

The Monarch Project, accessible by road and encompassing 20.61km² with 39 mining claims, is surrounded by Cygnus Metals' Auclair Project.

Located 60km north-east of the Whabouchi lithium mine, it is considered highly prospective for orogenic gold and volcanogenic massive sulphide deposits.

Troilus Gold's previous exploration indicated strong soil anomalies in lithium, tantalum, cesium and beryllium.

Lastly, the Elmer East Project covers 16.7km² with 32 mining claims and is situated 20km south-west of Arcadium's Galaxy project.

It is north of Azimut Exploration's Wapatik Project, which has identified multiple target areas and outcropping pegmatites.

Comet Lithium president and CEO Vincent Metcalfe said: “The acquisition drives further consolidation in the James Bay area, enhancing our strategic land positions and providing significant optionality for Comet shareholders.

“By securing these prospective assets, we are making investments at opportune prices.

“The well-located and highly prospective projects we are acquiring will be instrumental in our future growth and further enhance our position within the highly active and strategic Trieste Lithium Greenstone Belt.”