Critical metals explorer Leeuwin Metals Ltd (ASX:LM1) has further solidified its position as one of the largest lithium exploration projects in Canada by area, agreeing to acquire additional tenure next door to its Cross Lake Lithium Project (previously Jenpeg Lithium Project) in Manitoba.
Leeuwin has entered into a binding agreement with Rocas Del Norte to acquire the additional tenure adjacent, a move that aligns with the company’s strategy to consolidate the underexplored Cross Lake Greenstone Belt of which it is the single largest landholder.
The additional tenure extends the company's footprint to over 2,000km2, with over 70 kilometres strike of underexplored greenstone, further strengthening its tenure area and overall position.
Potential regional opportunity
The ongoing resampling of drill holes has delivered promising high-grade lithium results, combined with the historic channel sampling suggesting a potential regional opportunity within the belt.
Recent results from four drill holes reported last month delivered high-grade lithium intercepts up to 1.75% lithium oxide, reinforcing the project's potential value.
This acquisition aligns with Leeuwin’s plans for upcoming summer field activities within the project area. A regional mapping and sampling initiative is planned to deepen Leeuwin’s geological understanding of the Cross Lake pegmatite field system.
Leeuwin managing director Christopher Piggott said: “This cost-effective acquisition aligns with Leeuwin’s strategy as a first mover into the Cross Lake Greenstone Belt. This is a great result for the company, which has successfully secured 100% of the entire belt.
“Additionally, this new tenure paves the way for further exploration success and regional growth, complementing the Cross Lake Project area. This acquisition reinforces our commitment to strategic growth and to ensure we maximise our ability to create shareholder value as we enter this exciting new phase of field exploration of our Cross Lake project.”
Acquisition terms
Consideration for the acquisition will comprise CA$25,000 (A$28,500) cash, and the issue CA$25,000 worth of LM1 shares (the number of shares will be based on volume-weighted average price of LM1's shares over five business days prior to the purchase agreement).
The cash consideration will be sourced from existing cash on hand. The parties have agreed to enter into a 1% net smelter royalty on all minerals mined or derived from the claim, with the option for Leeuwin to repurchase the royalty at any time for CA$1 million.