Recharge Metals has completed the acquisition of the Wapistan lithium project in Canada, increasing its landholding in the prolific James Bay region of Québec to over 180 square kilometres.
The large-scale project was acquired from Canadian company Rockland Resources and comprises 219 mineral claims over two contiguous blocks across 107sq km.
It is believed to overlay 30km of the same greenstone belts which host lithium mineralisation at Q2 Metals’ Mia development and Ophir Gold’s Radis project.
Cash consideration
Recharge has paid Rockland an upfront cash consideration of $552,000 and will forward another $220,000 for payments made in acquiring the project.
It will also issue Rockland with 5 million Recharge shares, of which 50% will be subject to six months’ voluntary escrow.
Recharge is required to send Rockland a deferred payment of $552,000 no later than six months following the transaction.
Should it default on its obligations, Rockland will have the right to buy-back 100% of the mineral claims for $1.10.
Recharge will also grant a 2% net smelter return royalty to Rockland, which may be reduced to 1% in return for a cash payment of $552,000.
Share placement
Recharge has completed a $1.1 million share placement to advance exploration activities concurrently at Wapistan and its flagship Express lithium project, located 120km to the south.
The schedule of work at Wapistan will include a property-wide LiDAR (light detection and ranging) and orthophoto survey; field-based prospecting, rock sampling and geological mapping; and a diamond drilling campaign.
The placement was via the issue of 5.7 million new and fully-paid ordinary shares at $0.19 each to sophisticated and professional investors.
Keen to start work
Managing director Felicity Repacholi-Muir said the company was keen to start work at Wapistan, which has not been subject to historical lithium targeting or exploration.
“This “belt-scale” project significantly enhances our footprint in the James Bay area,” she said.
“The geology of the project, its proximity to other highly successful projects, and having geological teams available nearby to start quickly, make this an obvious opportunity to create value for our investors.”
