Narryer Metals has reached a deal with Highway Lithium to acquire a 70% stake in two lithium-tantalum projects, Big Hill and Fran, located in Canada's Yellowknife Lithium Province in Northwest Territories.
Together, the Big Hill and Fran Projects cover an area of 98km². This is hosted within the Archean Slave Craton, which has 50 known lithium occurrences.
The Big Hill spans 62km² and sits along a strike from Li-FT Power’s BIG lithium project that covers an area of 2.9km².
Notably, a spodumene-bearing pegmatite was recently discovered north of the BIG project's mineral claim boundary.
Lithium-caesium-tantalum pegmatites have been identified within the Big Hill claims, including spodumene occurrences in channel and rock samples.
The Fran Project, which is around 10km north of Big Hill, covers 36km² and shows signs of lithium and tantalum mineralisation. It hosts three known fractionated pegmatite dyke swarms with beryl and rare earth elements.
Upon receiving the necessary approvals for the deal, Narryer Metals plans to initiate drill permitting and prepare for fieldwork, which is expected to commence around May 2024.
The fieldwork will include a diamond drilling programme, aimed at further exploring the potential of these sites.
Current Highway shareholders will continue to hold a 30% interest in the projects.
As consideration for the acquisition, Narryer Metals must make an initial payment of A$50,000 ($33,066.50) in cash, 12.5 million fully paid ordinary shares, a 1.5% net smelter return royalty (NSR) on lithium production revenue, and a 2.5% NSR on revenue from other minerals.
Deferred consideration is based on exploration success and includes additional shares contingent on achieving certain drilling and resource delineation milestones by set dates between 2026 and 2029.
Additionally, Narryer Metals has agreed to an exclusivity fee, which includes a cash payment of A$50,000 and 2.5 million fully paid ordinary shares, as well as 2.5 million options exercisable at A$0.10 each before the end of December 2026.
The company also secured binding commitments to raise A$1.05m via the placement of 26.25 million shares at A$0.04 apiece.
Funds raised through the two-tranche placement will be utilised to advance exploration work at the Big Hill and Fran projects.
Narryer Metals managing director Gavin England said: “Canada will be the first part of the supply chain for future lithium battery development in North America, and Narryer Metals sees the future of hard rock lithium exploration in the Archaean cratons of northern Canada.
“The company is excited about the acquisition of lithium-focused projects close to Yellowknife in Northwest Territories, Canada.”
