Canadian exploration company Volta Metals has confirmed its satisfaction with the due diligence process to acquire an 80% interest in the Springer-Lavergne rare earth and gallium project near Sturgeon Falls, Ontario.
The Springer-Lavergne project spans 5,000ha and has total rare earth oxide deposits of 4.17 million tonnes (mt), with additional potential for high-grade gallium.
Volta Metals has agreed to revised terms for the acquisition and plans to sign a definitive agreement containing the revised terms before the end of May 2025.
The updated terms for the acquisition include an initial cash payment of C$100,000 ($72,145) and the issuance of ten million common shares to RZJ Capital Management, the vendor, along with a payment of C$220,400 to surface rights owners.
Subsequent anniversary payments and share issuances will further contribute to the acquisition costs, with the vendor also sharing payment obligations to the surface rights owners.
Volta will have the option to acquire the remaining 20% interest in the project and has agreed to grant a net smelter returns (NSR) royalty to the vendor.
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By GlobalDataThe company cautions that there is no certainty that the agreement will be concluded, and the current letter of intent is non-binding.
Additionally, Volta’s previously announced private placement offering is expected to close concurrently with the signing of the definitive agreement.
The offering includes units comprised of common shares and warrants, subject to regulatory approvals and a statutory hold period.
In a separate development, Volta has acquired additional mineral claims along the Seymour-Caribou Lithium trend, expanding its Aki critical minerals project in north-western Ontario.
The acquisition, subject to signing an option agreement with the claims vendor, involves cash payments of $58,000 over four years and share issuances to the claims vendor, with an NSR royalty also being granted.
Last year, Volta Metals acquired the ZigZag Lithium property in Ontario for $350,000, expanding its position in Ontario’s lithium sector.
