Record Resources, a Canadian mineral exploration company, has signed an option deal with an arms-length private exploration company to acquire three lithium properties and one uranium property in western Ontario, Canada.
The properties include the Whitemud River lithium prospect, O’Malley property and Rope Lake lithium prospects.
The seller will receive 21 million of Record’s shares over a three-year period, with 700,000 shares annually.
These shares are priced at C$0.035 per share, giving them a total value of C$73,500.
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It will also receive a cash payment of C$64,000 payable over the three-year period. For the first year, it will receive C$24,000, followed by C$20,000 each in the second and third years.
Whitemud River has 111 claims and is around 200km from Red Lake. This property returned lithium values ranging between 22.2 parts per million (ppm) and 46.6ppm.
The O’Malley property is located near Junior Lake on the Tashota greenstone belt and has 36 claims. The pegmatites found at the property are hosted in mafic metavolcanic and metasedimentary units and in close proximity to the Swole Lake lithium occurrence.
The Rope Lake lithium prospect is located around 165km from Thunder Bay and has 72 claim cells. The prospect includes a highly siliceous gneiss zone with thickness in several metres.
It also contains thin pegmatite and quartz veinlets less than a centimetre in thickness.
The uranium property in western Ontario includes ten claims.
Record also plans to raise up to C$200,000 via a non-brokered unit offering, at C$0.035 per unit. It will include one share of the company and one share warrant.
With each warrant, the holder can acquire a share at C$0.06 for 24 months following the issue of warrants.
The company will use the proceeds from the placement for exploration and working capital requirements.