High Tide Resources Corp (CSE: HTRC) has entered into an option purchase agreement to acquire a 100% interest in the Clearcut Lithium Project in the emerging Cadillac-Pontiac lithium camp in the Abitibi Témiscamingue region southwest of Val d’Or, Quebec.
The Property consists of 249 claims covering approximately 14,400 hectares within a network of logging roads allowing for good access and reduced exploration costs. Quebec MERN Report DP-338 issued in 1975 indicates that the Property is underlain almost entirely by granite with pegmatite.
“Adding the Clearcut Lithium Project to High Tide’s project portfolio is a low-risk and potentially high-reward opportunity for all our shareholders,” Director, President and Interim CEO, Steve Roebuck, said.
Lithium is in high demand making Clearcut a natural fit alongside our Lac Pegma Copper-Nickel-Cobalt Project that further diversifies our battery metals projects along with our flagship Labrador West Iron Project.”
Companies already active in the Cadillac-Pontiac camp include Winsome Resources, Sayona Mining, Vision Lithium, Brunswick Exploration and Renforth Resources.
In February 2022, Vision Lithium reported 2.17% Li2O over 5.5 metres from a channel sample taken from its nearby Cadillac Lithium Property confirms the presence of spodumene-bearing pegmatite dykes in the Cadillac-Pontiac camp.
Increasing worldwide demand for lithium from the nascent battery sector has focused exploration on areas of historical pegmatite-type lithium deposits.
Since 2016 Sayona Mining Ltd. has accelerated exploration and development of the Authier lithium deposit and the recently acquired, past-producing North American lithium mine in the Preissac-Lacorne-Lamotte area located just 20 kilometres to the north of the Cadillac-Pontiac camp.
This advanced activity has resulted in a keen interest in the lithium potential of Cadillac-Pontiac where traditionally there has been very little exploration due to the focus on the rich gold and volcanogenic-type base metal deposits found in the prolific Abitibi Greenstone Belt lying just to the north.
Agreement Details
Pursuant to the Agreement, the Company may acquire a 100% interest in the Property by making aggregate cash payments of $100,000, issuing an aggregate of 1,000,000 common shares of the company and incurring an aggregate of $1,000,000 in exploration expenditures on or before the third anniversary date of the Agreement.
The Vendors will retain a 2.0% net smelter royalty, 0.5% of which may be purchased by the Company for $1,000,000.
Further, the company has agreed to make additional one-time milestone payments of $500,000 and $1,000,000 upon the filing of a positive feasibility study and upon the start of commercial production respectively.
The milestone payments may be paid in cash or the issuance of shares at the Company’s discretion and shall be deemed to be an advance to the Vendors to be deducted against future royalty payments.
For further information please visit: www.hightideresources.com .
