Australian exploration company Lepidico has entered into a binding option agreement with Critical Elements Corporation to acquire up to 75% of the Lemare lithium project in the James Bay region of Quebec, Canada.
The Lemare project consists of 158 claims securing a total ground position of 7,433 hectares in a region of Quebec that boasts other lithium deposits and known mineralisation. It also boasts several advanced compliant lithium resources, including the Whabouchi deposit and Critical Element’s own Rose project.
Earlier exploration work conducted at Lemare identified a granite pegmatite dyke containing a considerable amount of spodumene.
Lepidico Chairman Gary Johnson said the acquisition would further expose the company to the lithium sector following the signing of the Memorandum of Understanding with Crusader Resources to exploit lithium resources in Brazil earlier this month.
“Lemare is a significant landholding that is highly prospective for lithium mineralization boasting a large pegmatite that is ready to be drilled,” Mr Johnson said.
Critical Elements President Jean-Sebastien Lavallee said the arrangement with Lepidico would allow Lemare to advance towards resource delineation and project development over its other properties.
“Critical Elements is currently focused on the development of its Rose lithium project. With Lepidico farming into the Lemare project, shareholders of both companies will be able to benefit from successful exploration of a highly prospective project.”
At the beginning of February, Lepidico entered into an exclusive agreement with Perth-based exploration company Platypus to complete mutual due diligence for the purpose of investigating whether or not an agreement for the acquisition of Platypus of Lepidico or its assets can be agreed.
“The Lemare acquisition is another prospective opportunity for Lepidico that we will consider as part of our due diligence,” said Platypus Managing Director Tom Dukovcic.
“Platypus has undertaken to assist Lepidico in the assessment of Lemare and we are fully supportive of the potential acquisition as it would deliver a quality project to the growing lithium portfolio.”