Australia-based Critical Resources has closed the acquisition of a 100% stake in the Mavis Lake lithium project in Ontario, Canada.

The project has been acquired from Essential Metals and its joint venture (JV) partner International Lithium (ILC).

According to the agreement signed in October 2021, Critical Resources paid $1.08m (A$1.5m) in cash and issued 68 million shares to the sellers. It also issued eight million shares to the facilitator of the transaction.

Critical Resources will pay another $1.08m (A$1.5m) in cash and A$100,000 of Critical Resources shares on the definition of a Joint Ore Reserves Committee-compliant resource for the project with no less than five million tonnes (Mt) resources, containing no less than 50,000t of lithium.

Additionally, the firm will pay $1.08m (A$1.5m) in cash and A$100,000 in shares on the definition of a resource containing no less than 10Mt and at least 100,000t of lithium.

Critical Resources managing director Alex Biggs said: “We have no doubt that the project will add significant value to the business moving forward.

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“Our strategy in 2022 is to begin exploration drilling as soon as possible once permitting is completed. We have multiple targets to explore with a view to achieving, over time, the milestones set out by the vendors of five million and ten million tonnes.”

ILC plans to use the sale proceeds to strengthen its balance sheet and fund the exploration programme in the Raleigh Lake project.

ILC chairman and CEO John Wisbey said: “ILC remains deeply committed to Ontario with our claims at our 100%-owned Raleigh Lake lithium and rubidium project near Ignace, Ontario, now totalling over 47,700ha, and we are glad to be able to focus our Canadian efforts on that major project.

“We retain a further C$1.38m of upside in further payments at Mavis Lake if CRR achieves the hoped for results there.”