Australian mining company Coolabah Metals has agreed to acquire Hampden Lithium, which owns four lithium exploration properties within the James Bay
region of Quebec, Canada.
The four properties, namely Carmoy, Taiga, Mago North and Le Grande, occupy 113km².
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They are near to the Corvette property owned by Patriot Battery Metals, where recent drilling has detected a potential spodumene deposit.
Coolabah will issue ten million of its shares as a deal consideration and offer five million performance rights after securing rock chip samples from any of the assets.
It also obtained firm commitments for a A$1m placement at ten cents per share, which marks a premium to its last traded price of 9.6 cents.
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The 75.8km² Carmoy project is said to be underlain by Neoarchean biotite-muscovite granites and biotite-magnetite bearing granites and tonalites. There is also a mapped pegmatite in the south and prominent linear dyke structure.
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By GlobalDataThe 16.3km² Taiga property sits 15km north of Patriot Battery Metals’ CV5 deposit.
Mineralisation of this site coincides with contact between the magnetic iron formation of the Guyer group and the tonalite formations.
Mago North is located 25km west of Taiga and underlain by Neoarchean tonalitic gneiss.
The tonalitic gneiss is in contact with Guyer group greenstones located to the south of the claim block.
McCoy Lake is located in the Red Lake region of northwestern Ontario, covering 70km². It is claimed to hold 58.4 million tonnes at 1.50% of lithium oxide.
Drill results from February 2022 concluded 332m at 1.6% lithium oxide.
The project also has an underexplored greenstone assemblage located near fertile granite systems.
Coolabah Metals managing director Cameron Provost said: “Lithium is becoming increasingly important as the world shifts towards renewable energy sources and electric transportation. As demand for these technologies grows, so too does demand for lithium.
“The James Bay Region of Quebec, Canada is known for containing significant resources of lithium and this 100% acquisition positions Coolabah Metals as a player in the fast-growing lithium exploration market.
“Timing of the acquisition is excellent, leading into the Canadian field season. Coolabah Metals looks forward to updating the market as testing of these structures unfolds.”
