Lithium One Metals has signed an option agreement to purchase a 100% interest in the Lac Astrid Lithium Project in northwestern Quebec, Canada from Glenn Griesbach.
The project comprises 70 mineral claims that cover a total area of around 3,600ha.
It is located in a very active hard rock lithium pegmatite area in the prolific James Bay area in Quebec, approximately 900km north-northeast of Montreal.
Under the arms-length option agreement, Lithium One holds an option to make aggregate cash payments of $600,000 in three tranches and issue a total of 1.2 million units and three million common Lithium One shares upon execution of the deal.
It will also issue one million Lithium One shares on the first anniversary of the agreement, and two million shares on the second anniversary of the deal.
The share issuances and cash payments increase over the term of the deal.
Upon Lithium One exercising the option, Glenn Griesbach will continue to hold a 3% net smelter returns royalty on the Lac Astrid Project.
Glenn Griesbach will use the deal proceeds for mineral exploration and general working capital purposes.
The Lac Astrid Lithium property is situated 11km east of Patriot Metals’ Corvette Lithium discovery, within the 50km ‘CV Lithium Trend’. Patriot Metals describes CV Lithium Trend as an emerging spodumene pegmatite district.
As part of the initial exploration work, Lithium One Metals will focus on assessing outcropping white pegmatite with muscovite and tourmaline at the property.