Battery metals: Sayona buys another Canadian lithium project
Sayona Mining (ASX: SYA) has bought another lithium project in Canada, from a private Canadian miner Exiro Minerals.
The Lac Simard project lies just 82km away from Sayona’s Authier Project and adds to its Tansim lithium project. Sayona also have projects in Western Australia.
Over the next three years, Sayona will be able to earn it through exploration as well as cash and share payments. $20,000 in shares will be issued immediately and by the third anniversary up to $140,000 will be granted.
Sayona will have to undertake $10,000 in minimum assessment work by the first anniversary and $10,000 before the second. Exiro will be paid a 2 per cent net smelter return (NSR) royalty upon completion of the deal.
“Tansim’s potential has been reinforced by the latest exploration results, which point to the possibilities of a new lithium deposit within relatively close proximity to Authier,” managing director Dan O’Neill said.
“This acquisition will allow shareholders to further benefit from the growth of the Tansim project, as we work to unlock value from out lithium project pipeline in Canada and Western Australia.”
Shares opened at 1.8 cents, a 6 per cent jump from Friday’s closing price but significantly down on where they were a year ago.
West Australia’s Yilgarn Craton is one of the hottest lithium areas in the world and recent field work by Lithium Australia (ASX: LIT) has confirmed this. The company announced to shareholders the results of exploration and has estimated a conceptual Exploration Target of 5Mt to 8Mt @ 0.8% to 1.2% lithium.
However the company was quick to point out this was just an estimate, not a JORC compliant Mineral Resource. Furthermore, drilling will not begin until the fourth quarter despite a drill target being defined. Managing director Adrian Griffin was cautiously optimistic saying, “there is a good probability of finding mineralisation beyond that outlined in outcrop to date”, but went little further.
Queensland cobalt and copper explorer Greenpower Energy (ASX: GPP) announced assay results from drilling at it Lincoln Springs project and has called the results, “anomalous”. The best intersection found was 4m @ 3.3% copper, 0.16% cobalt and 0.27% zinc. The company will submit more samples to assay laboratories this week and has said the drilling program will be completed shortly.