Critical Resources Limited (ASX:CRR) has satisfied the Condition Precedent for the binding Purchase and Sale Agreement with TSX-V listed Power Metals Corp (TSX-V:PWM) to acquire Power Metals’ Gullwing- Tot Lakes property in Ontario.
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.
The Mavis Lake Project Area lies within the prospective Sioux Lookout Domain in the Wabigoon Subprovince.
Gullwing-Tot Lakes is located in Drope and Webb townships, 30 km northeast of Dryden, Ontario, and approximately 5.5 km 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 centred 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.
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, which has now been completed.
The company will now administer the cash and share payment requirements to acquire a 100% interest in the mining claims, being:
• A cash payment of C$600,000 made to Power Metals (or nominee); and
• Issue of C$600,000 of deemed value in the company’s securities to
Power Metals (or nominee).
The company will also grant Power Metals a 1% Gross Margin Royalty for mineral production within the mining claims acquired by the company.
Future Works
It is anticipated that exploration efforts will commence in the Canadian summer, focused principally on mapping and geochemical field work to develop and refine future drilling targets. Initial efforts will center on the Gullwing and Tot Lakes pegmatites.
The company will leverage its existing exploration team and contractors supporting Mavis Lake in order to complete efforts at the Gullwing Tot Lakes property.
For further information please visit: https://www.criticalresources.com.au/
