James Bay Minerals, a Canada-focused lithium explorer, has signed a binding agreement to acquire the Independence Gold Project in Nevada, US.

The project is currently owned by Independence Mining, a JV between Battle Mountain Resources and Americas Gold Exploration.

It spans around 627 acres and is located near Nevada Gold Mine's Phoenix Project.

The acquisition will see James Bay Minerals initially gaining a 51.54% interest in the Independence Gold Project through the purchase of 100% of Battle Mountain Resources for $2.43m (C$3.36m) in shares, priced at $0.15 each.

This transaction is contingent upon shareholder approval and the completion of a $1.5m placement.

Additionally, James Bay has the option to acquire Americas Gold Exploration's stake through an earn-in agreement, which involves issuing two million shares and incurring at least $1.5m in exploration expenditure within one year.

Upon fulfilling the initial conditions and within 45 days of the stage one end date, James Bay is required to issue $500,000 worth of shares to Americas Gold, calculated based on the volume weighted average price of the 30 days prior.

This will increase James Bay's interest in the project to 75%.

To acquire the final 25% interest, the company must spend an additional $1.5m on exploration within a year and pay $1.5m to Americas Gold within 45 days of the stage two end date.

A further $2m cash fee is payable to Americas Gold within 12 months of production commencement, with an option for James Bay to satisfy $1.5m of this through share issuance.

During the earn-in period, James Bay will solely fund and oversee operations at the project, including exploration and development activities.

In conjunction with the acquisition, James Bay is also undertaking a placement of ten million shares at $0.15 per share to raise $1.5m, marking a 25% discount to the last closing price on 10 October 2024.

Wagtail Capital will lead the placement, with company directors Andrew Dornan, Dean Ercegovic and Gerard O’Donovan participating for $100,000, $50,000 and $25,000 respectively.

The proceeds will support exploration and development of both the company's existing projects and the newly acquired Independence Gold Project.

James Bay executive director Andrew Dornan said: “This is an exceptional opportunity for our shareholders and we are extremely fortunate to have secured this acquisition and earn-in at the Independence Gold Project.

“This gives us the opportunity to enhance our existing asset base in North America with a substantial high-grade gold asset with immediate growth potential.

“The combination of existing high-grade resources, significant growth potential at both the near-surface and skarn deposits, and a location in one of the best mining districts globally presents a huge opportunity for the company.”