Canadian gold exploration company Solstice Gold has acquired the Church Lake project and has the option to acquire a 100% interest in the Purdom project, located near the Frazer Lake area in Nipigon, Ontario.
Solstice reached an agreement with 1544230 Ontario and Gravel Ridge Resources (“optioners”) to buy the option to acquire the optioners’ stake in the Purdom project.
It has agreed to pay C$21,000 ($15,488) in cash within ten days and issue 300,000 shares to the optioners.
To exercise the option, the company must conduct exploration expenditure on the claims and make payments, including C$25,000 by the first anniversary of the option agreement followed by a payment of C$30,000 by the second anniversary and a payment of C$34,000 by the third anniversary.
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It must also pay at least C$30,000 for exploration work within the first anniversary.
The optioners will retain a 1.5% net smelter royalty (NSR) on the project, including a 0.75% buyback for C$900,000.
With these acquisitions, Solstice added 96km² of strategic land for lithium pegmatite exploration. The Church Lake project covers 55km² of area with 261 claims and the Purdom project spans 41km²with 14 claims.
The Church Lake project is 5km south of Pegmatite One Lithium’s (PGA) claims, which host a new lithium-caesium-tantalum (LCT) pegmatite discovery.
It is within the halo of two-mica granite mapped by the Ontario Geological Survey (OGS), which is expected to be the source of the LCT pegmatites in the region. OGS’s survey also suggests that the pegmatites are closer to the intrusive.
The project is within the southern end of a fault with several lithium lake sediment anomalies. There are prominent east-west structures across the area’s length.
The Purdom project is located east of PGA’s claims and 3.5km to OGS-mapped two-mica granite. It is claimed to host lithium lake sediment anomalies.
Lake sediment anomalies at the two projects are newly documented and provide positive indications of potential for pegmatite discoveries, Solstice added.
Solstice CEO Pablo McDonald said: “A possible western extension of the Georgia Lake Deposit in this area was identified as part of Solstice’s 2023 Province-wide review of potential lithium areas. We had been tracking progress in the area and decided to seize the opportunity to stake once we saw positive results to confirm its potential.
“We are very happy with the preliminary results we’ve seen from our reconnaissance field trip, and we have already mobilised field teams to the area. We will be making use of structural and geochemical data to vector into the areas of the highest potential in this area while doing systematic coverage of the properties.”