Rockland Resources has agreed to take a 100% interest in the Elektra claystone lithium project in northern Sonora, Mexico.
An option agreement has been signed to acquire the strategically located project, which is being developed by Bacanora Lithium (50%) and Ganfeng Lithium (50%).
According to the deal, Rockland can earn a 100% interest in the project by issuing ten million Rockland common shares and paying $1.5m over 48 months.
Rockland will have an option to buy 50% net smelter return (NSR) for $1m at any time while the vendors will be granted a 2% NSR.
Rockland CEO Mike England said: “The Elektra lithium project acquisition represents a decisive move into the battery metal sector for Rockland, in addition to our gold exploration projects.
“With global lithium demand expected to quadruple by 2025, and with claystone lithium deposits recognised as a significant near-term lithium production source, the acquisition of the Elektra project is a rare opportunity.”
The Elektra project comprises four exploration concessions, which cover a total area of 41,818ha in the northern portion of the Sonora.
The concessions of the project are contiguous to the north (Tecolote) and south (Tule) of Bacanora-Ganfeng’s Sonora Lithium Project, which is estimated to hold a large, scalable and high-grade lithium resource.
Rockland president and director Dr Richard Sutcliffe said: “The Elektra lithium project targets lithium-rich clays and claystone units, derived from alteration of shallow-dipping volcanic rocks.
“Rockland’s exploration program will have the objective of defining a lithium resource on the Agua Fria prospect and to test multiple other lithium targets outlined by surface sampling and trenching that could potentially be developed by low-cost, low-strip, conventional open-pit mining.”