Canadian company Musk Metals has agreed to acquire two lithium properties strategically located in James Bay, Quebec, from two undisclosed vendors.

The transaction involves the Pontax South and Ile Interdite properties.

Under the deal, Musk Metals will acquire the two lithium properties by making a $50,000 (C$66,000) cash payment to the arm's length vendors upon the closing of the next hard dollar financing.

Musk Metals will also issue 1.5 million of its common shares to each of the two vendors, as well as grant a 2% underlying royalty.

The Pontax South property comprises 105 claims covering 5,603 hectares (ha) and is located immediately adjacent to the south of the Li-Ft Power-owned Pontax project, which comprises the extensive lithium anomaly.

The Ile Interdite property comprises 20 claims covering a total area of 1,089ha. It extends more than 5km along the Nottaway River Shear Zone.

In a press statement, Musk Metals said: “The Ile Interdite property hosts an important beryl showing that was identified in the 1960s by the same group of Quebec government geologists who reported spodumene at both Whabouchi and Cyr deposit's locations.

“Beryl is a relatively rare pathfinder mineral for lithium, often observed in pegmatites. At Ile Interdite, beryl is disseminated in a pegmatite.”

Subject to applicable regulatory approvals, the transaction is due to be closed no later than 31 July 2023.