Green Technology Metals Ltd (ASX:GT1) has secured 100% ownership of the Junior Lake Lithium project that is just 22 kilometres from its flagship Seymour Project in Ontario, Canada and offers “outstanding potential to make new proximal lithium discoveries and strategically grow the resource base for Seymour”.
The project comprises 591 staked mineral claims on 109 square kilometres of tenure that hosts multiple LCT pegmatites at surface, with drill-ready targets.
Green Technology signed an agreement in March for the option to purchase an 80% interest in the Junior Lithium Project from Landore Resources Canada Inc.
Following initial exploration success, the company has now opted to execute a purchase and sale agreement to acquire 100% of the project from Landore.
Seamless alignment
The company already owns a substantial portfolio of strategic lithium exploration claims in highly promising Archaean Greenstone belts in north-west Ontario, prominently featuring its flagship Seymour Project.
Its strategic focus is on rapidly advancing both the Seymour and Root projects towards production, aiming to become the preeminent lithium producer in Ontario.
The company says the Junior Lake Project, which is also adjacent to the company’s Falcon Lake lithium claim, holds immense promise. It provides a valuable opportunity to secure additional feedstock for a lithium concentrate plant at Seymour, aligning seamlessly with its broader strategic objective of emerging as a leading, lithium-focused near-term producer.
The acquisition expands the company's footprint at the prospective Caribou Lake-O’Sullivan greenstone belt, and with it the promise of new lithium deposits, considering the confirmed presence of multiple LCT pegmatites at the surface at Junior Lake.
Green Technology CEO Luke Cox said, “We are delighted to announce our achievement of 100% ownership of the Junior Lithium Project.
“The Junior Lake Project's proximity to Seymour, coupled with its adjacency to GT1's lithium claim at Falcon Lake, offers a unique opportunity to bolster our resource base at Seymour.
“This transaction aligns seamlessly with our overarching strategic goal of becoming a prominent player in the lithium sector, with a focus on near-term production. It complements our progress on the flagship Seymour Project and the development of our lithium chemical plant in Thunder Bay, in line with our mission to become Ontario's first vertically integrated lithium producer.”
Key terms
The company will pay Landore C$1,000,000 (A$1.16 million) cash, plus shares worth C$600,000 at a price of A$0.425 per share, and the existing 2% net smelter royalty.
Green Technology does have rights to repurchase 1% of that royalty for $1,000,000, which is over the Swole Lake project, which comprises nine mineral claims within Junior Lake located in and around the Swole Lake lithium occurrences.