Mineral explorer CDN Maverick Capital has agreed to acquire the Northwind Lake property, a lithium pegmatite exploration project in Electric Avenue Lithium District in Ontario, Canada.

The property is located 10km from Frontier Lithium’s PAK lithium deposit in the Red Lake mining division.

It has a series of mineral claims that cover 7,040 hectares (ha) of land.

The PAK deposit is said to have a measured mineral resource of 7.23 million tonnes (mt) of 1.87% lithium oxide (Li₂O) and an indicated resource of 2.76mt of 2.22% of Li₂O.

As a deal consideration, Maverick will issue 500,000 shares and pay $100,000 in cash.

Of the cash component, $50,000 will be paid on deal closing while the remaining amount will be paid after 120 days.

The shares to be issued will be subject to a hold period of four months.

CDN Maverick Capital CEO Adam Cegielski said: “With this acquisition, Maverick will increase its foothold in the lithium space: capitalising on the enthusiasm for localised supply chains; one of the fundamental drivers for the lithium market.

“Ontario specifically, is injecting more and more funds as part of their mandate to make their province ‘the first jurisdiction on everybody’s mind’, according to the Minister of Energy, Northern Development and Mines Greg Rickford.

“We hope to be a part of this momentum. With our increasingly diverse but strategic portfolio of projects, we are uniquely positioned to adapt to lithium development and production's innovative and progressive landscape while always staying aligned with our shareholders.”

Last month, the company agreed to acquire the Chabinoche project, a lithium district located 60km north of Matagami, Quebec.

The 40,000ha project consists of 711 claims and has two main targets; the Chabinoche target with 266 claims and the Poncheville target with 445 claims.