PERTH (miningweekly.com) – Junior Loyal Lithium has unveiled plans to acquire a majority stake in the Hidden Lake lithium project, in the Northwest Territories of Canada.
The company has struck binding agreements with two independent parties to secure the controlling interest in the project, acquiring a 60% interest in 1 660 ha from vendor Youssa, and a full 100% interest in a further 841 ha from vendor DG Resource Management.
The acquisition includes a 2 500-ha land position across six contiguous claims containing 14 mapped lithium spodumene-bearing pegmatite outcrops with the four that have been drill tested spanning a cumulative strike length of 2 250 m.
ASX- and TSX-V listed Patriot Battery Metals will retain a 40% interest in five contiguous claims and will form a joint venture (JV) with Loyal Lithium.
Under the terms of the agreement, Loyal Lithium would pay the vendors A$250 000 in cash and will issue 14-million company shares, as well as a further four-million options with an exercise price of 60c each and an expiry date of three years.
The company would also take responsibility for a 2% net smelter royalty payable on the claims.
“The acquisition of the Hidden Lake lithium project is a game-changer for Loyal Lithium. We are delighted to collaborate with our new JV partner, Patriot Battery Metals, and bring a fresh approach to this remarkable spodumene project,” said Loyal MD Adam Ritchie.
"The Yellowknife region has a proud history of lithium exploration, dating back to the 1950s. However, the district has been relatively overlooked in recent times until Li-FT Power secured its potentially world-class Yellowknife lithium project in late 2022. Yellowknife is a well-established mining city with experienced mining services and workforce. Loyal Lithium is looking forward to fostering relationships with the local stakeholders and becoming an important part of this emerging lithium district,” said Ritchie.
“The exploration work conducted to date has been very encouraging with all of the spodumene-rich dykes remaining open along strike and at depth. Additionally, the metallurgical pilot plant performance to date is exceptional and is a direct product of the consistency and purity of the Hidden Lake ore. I have no doubt that Hidden Lake will provide desired feedstock to many potential downstream partners.”