Lightning Minerals has signed a binding letter of intent (LoI) with Lithium Rabbit Quebec to acquire the latter’s two projects in the prolific lithium region of James Bay in Quebec, Canada.

Under the LoI, Lightning Minerals intends to acquire a 100% stake in the 47km² Dalmas Project and 32km² Hiver Project.

With the LoI, Lightning Minerals is granted an exclusivity period of 60 days for a cost of A$30,000 ($19,532). This is effective from 10 August 2023.

During this period, the company will conduct due diligence on the two projects.

Subject to various conditions, Lightning Minerals will sign a definitive agreement to acquire the two properties within 45 days after the date of signing of the LoI.

As consideration for the acquisition, Lightning Minerals will pay an additional A$220,000 in cash and issue A$250,000 in Lightning Minerals ordinary shares.

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By GlobalData

Lithium Rabbit Quebec will receive a 2% net smelter royalty, of which 1% may be bought back by the acquirer for A$1m.

Located 45km to the east of Winsome Resources’ Adina lithium Project, the Dalmas Project comprises felsic intrusive lithologies juxtaposed against greenstone and metasedimentary units.

The property is expected to host pegmatite emplacement and possible lithium-caesium-tantalum (LCT) mineralisation.

Situated adjacent to Megado Resources’ Cyclone Lithium Project, the Hiver Project is said to hold a geologically favourable host environment for hard rock LCT pegmatite-style mineralisation.

The LoI forms part of Lightning Minerals’ efforts to develop a portfolio of quality lithium and critical minerals assets in tier-one jurisdictions.

Lightning Minerals CEO Alex Biggs said: “This acquisition will be a significant step forward for the company in its exposure to lithium. Having ground positions in two of the most prospective lithium regions globally, Western Australia and Quebec, is an excellent opportunity.

“We have been actively pursuing project acquisition opportunities both in Canada and Australia since our listing in November 2022 and have reviewed multiple projects. As we grow the company, we look to build our project pipeline with high-quality additions to our portfolio, presenting upside to investors that is relevant to the global push towards electrification and green energy.”