ASX-listed mining companies Galan Lithium and Redstone Resources have agreed to set up a 50:50 joint venture (JV) to acquire a 100% stake in the Camaro-Taiga-Hellcat property blocks in Quebec, Canada.
Galan and Redstone are acquiring the properties from Infinity Stones Ventures and two private individuals.
The lithium projects are located in Quebec’s highly prospective James Bay Lithium Province and collectively cover an area of 5,187 hectares (ha).
They are located next to Patriot Battery Metals’ (PMET) emerging CV8 and CV13 pegmatite discoveries. It is claimed that PMET’s CV8 has samples averaging around 4.6% of lithium oxide (Li2O).
Furthermore, the JV has secured an option to acquire 100% of two additional lithium projects covering 1,415ha of land in Ontario's Electric Avenue near Frontier Lithium's (Frontier) PAK Lithium Project.
The Taiga and Camaro projects are situated in the Meso-Archean to Paleoproterozoic La Grande Subprovince of the Superior Provence.
These two projects are hosted in amphibolite, biotite hornblende tonalite, conglomerate, granodiorite, granite, hornblende biotite diorite, quartz-rich diorite and wacke.
Pegmatite dykes at the projects range from centimetre-scale anatectic sweats to 5m-wide dykes. They have also been traced up to 200m in length.
Furthermore, the dykes consist of plagioclase feldspar, potassium feldspar, quartz and minor biotite with local tourmaline and muscovite.
The Hellcat property within the project is thought to have spodumene-bearing pegmatite dykes.
As part of the agreement, Galan will issue 250,000 shares and pay C$500,000 ($364,780) to Infinity. It will also issue 300,000 shares to another vendor and pay C$255,000 for the James Bay projects.
After signing the agreement, Galan will pay C$20,000 in a three-month option exclusivity fee to Infinity. If the option is exercised, Galan will pay C$200,000 and issue C$230,000 worth of shares to the company.
Galan and Redstone have also agreed to pay a 2% net smelter return royalty for the overall James Bay lithium projects and PAK lithium projects with a right to buy back half of the royalty by paying each royalty holder C$1m.
As per the agreement and the JV terms, Redstone plans to issue 50 million of its shares to Galan valued at C$500,000.
Furthermore, if the option is exercised, Redstone will issue an additional 20 million of its shares to Galan valued at C$215,000.
Galan managing director Jian Pablo (JP) Vargas de la Vega said: “Galan is very pleased to invest in the world-renowned James Bay Lithium district in Québec, Canada. In joint venture with Redstone, who will be the manager. Galan is very experienced in lithium exploration and looks forward to the joint venture initiating exploration in the region. Securing an option in a premier lithium district of North-West Ontario also pleasing to Galan. Both projects are low-entry-cost ventures into Canada.
“The JV projects are of quality and situated nearby excellent lithium discoveries, with the James Bay Lithium Projects being adjacent to the Patriot Battery Metals high-grade CV8 pegmatite discovery, and the PAK Lithium Projects situated in Ontario's Electric Avenue area.
“Securing a prospective position in two premier lithium exploration global hotspots is value accretive and complements our exploration efforts in Greenbushes South in Western Australia to create further value for shareholders in parallel with our development and production [of] lithium brine assets in Argentina.”
