Loyal Lithium has signed binding agreements with two independent parties to acquire a controlling stake in the Hidden Lake lithium project in Northwest Territories, Canada.
The acquisition involves six contiguous claims containing 14 mapped lithium spodumene-bearing pegmatite outcrops across a 2,500ha land position. Four of the most significant pegmatites of the project have been drill tested with a total strike length of 2,250m.
Loyal Lithium will acquire 60% interest in 1,660ha from Youssa. This includes five contiguous claims of the Hidden Lake lithium project.
The company will acquire 100% interest in 841ha of the project from DG Resource Management.
The transaction involves a cash consideration of A$250,000 ($166,396) to be paid to Youssa and C$35,000 ($25,992.75) to be paid to DG Resource Management.
Besides, Loyal Lithium expects to formalise a joint venture (JV) arrangement with Patriot Battery Metals. The latter is expected to retain 40% interest in the five contiguous claims through the JV.
Following the completion of the acquisition, Loyal Lithium will have a formal change of nature from a gold exploration company to a lithium exploration and development company.
Loyal Lithium managing director Adam Ritchie said: “The acquisition of the Hidden Lake Lithium Project is a game-changer for Loyal Lithium.
“We are delighted to collaborate with our new joint venture partner, Patriot Battery Metals, and bring a fresh approach to this remarkable spodumene project.”
Half of the dykes at the Hidden Lake lithium project are verified to be spodumene rich. The project is located nearly 45km east of Yellowknife.
The five contiguous claims of the project were identified by DG Resource Management which vended the project to Patriot Battery Metals in 2016.
In 2018, the lithium project was transitioned to an earn-in JV with Foremost Lithium. The remaining earn-in for the Canadian lithium project was ceased by Foremost Lithium in the following year, which led to the immediate formation of a 60-40 JV agreement.
