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Critical Resources Limited (ASX:CRR) (“Critical Resources” or “the Company”) is pleased to advise that it has satisfied the Condition Precedent for the binding Purchase and Sale Agreement with TSX-V listed Power Metals Corp (TSX-V:PWM) (“Power Metals”) to acquire Power Metals’ Gullwing- Tot Lakes property.
Highlights
- Critical Resources to acquire 100% of the Gullwing-Tot Lakes property from TSX-V listed Power Metals Corp (TSX-V:PWM)
- Gullwing-Tot Lakes property covers ~7,518 hectares, located approximately 5.5km northeast of the Mavis Lake ‘Main Zone’ where the Company has been successfully drilling since April 2022
- The Gullwing-Tot Lakes property is considered to be highly prospective for lithium mineralisation, with historical exploration identifying multiple spodumene-bearing pegmatites over the project area, with rock-chip samples returning grades up to 6.78% Li2O1
- The acquisition, underpinned by continued positive drilling results, strongly align with the Company’s development focus for the Mavis Lake Lithium Project
Property Details
The Gullwing-Tot Lakes property, along with the Mavis Lake Lithium Project and recently staked ground, will form an enlarged contiguous project area of approximately 30 km long and 9.5 km wide, with a total area of 22,984 hectares (“Mavis Lake Project Area”). The Mavis Lake Project Area can be seen in Figure 1, the entire Mavis Lake Project area lies within the prospective Sioux Lookout Domain in the Wabigoon Subprovince. Figure 1 also identifies the two pegmatites that were subjects of historical exploration efforts by Power Metals.
Figure 1 – New (increased) Mavis Lake Project Area
Gullwing-Tot Lakes is located in Drope and Webb townships, 30km northeast of Dryden, Ontario, and approximately 5.5km northeast of the Mavis Lake ‘Main Zone’ where the Company has been successfully drilling for lithium since April 2022.
Historical exploration completed by Power Metals centered on two outcropping pegmatites (Gullwing Lake and Tot Lake), delivering results up to 6.78% Li2O, historical exploration has also discovered high-grade results for tantalum and cesium. For full exploration results refer to Critical Resources’ ASX Announcement - released 20 December 2022.
With its location, the Gullwing-Tot Lakes property, like Mavis Lake, has excellent and immediate access to national level road and rail infrastructure, hydro-power and support services from the town of Dryden.
Purchase and Sale Key Terms
The Purchase and Sale Agreement executed between the Company and Power Metals on 16 December 2022 is binding on both parties. The agreement was subject to completion of due diligence requirements to the satisfaction of the Company (“Condition Precedent”), which has now been completed.
This article includes content from Critical Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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