Avalon Advanced Materials has closed the transaction with GoldON Resources to acquire a full interest in the seven-claim, 1,008ha Paterson Lake property in Ontario, Canada.
The property is located adjacent to the north and west of Avalon's Separation Rapids Lithium Project near Kenora.
Avalon has issued 500,000 common shares of its capital stock to GoldON as consideration for this acquisition.
The shares will be subject to a four-month hold period expiring on 2 July.
Avalon Advanced Materials CEO Don Bubar said: “There is abundant potential for discovery of additional lithium pegmatites in the Separation Rapids region that can provide future sources of feed for our planned lithium production facility in the Kenora area.
“We are committed for the long-term to building a business that can take advantage of the energy storage revolution and the rapidly growing demand for lithium battery materials.
“Consistent with Ontario's commitment to innovation and clean energy technology, we see an opportunity to participate in creating new cleantech supply chains, anchored in northern Ontario, for the advanced materials needed to make these goals a reality.”
The acquired property hosts three known lithium pegmatite occurrences, known as Glitter, Wolf and Rattler, along with a number of smaller, under-explored pegmatites bearing lithium, tantalum, rubidium and tin.
These occurrences come under the same geological formation that hosts Avalon's Separation Rapids pegmatite deposit.
Some of these occurrences are in close proximity to targets planned for testing during the company's upcoming drilling programme and may be included in this programme.
A Canadian mineral development company, Avalon Advanced Materials specialises in niche market metals and minerals.