Recharge Metals upscales placement to $3 million to explore new lithium project

Recharge Metals has secured firm commitments from institutional, sophisticated and professional investors for a conditional A$3 million placement at $0.10 per share. 

Earlier this week the company announced plans to acquire 139 mineral claims over two contiguous blocks in the prolific James Bay Region of Québec, Canada, forming the Express lithium project.

These funds will be used for exploration activities at the project, with initial exploration to include the acquisition of LiDAR, high resolution aerial imagery, and magnetics to assist with defining target areas ahead of a summer field campaign.

Recharge Metals (ASX:REC) says demand for the conditional placement has resulted in the Board’s decision to upscale from A$2.5 million to A$3.0 million.

Summer field season planned

Notably, the Express project is 12km southeast of Allkem’s (ASX:AKE) James Bay Deposit (37.2Mt @ 1.3% Li2O) and 15km northeast of Cygnus Metals’ (ASX:CY5) Pontax Lithium Project.

No material lithium exploration work has been carried out on the area despite the presence of numerous pegmatite occurrences and the Quebec Ministry of Natural Resources and
Forestry declaring the area to be an “underexplored unit that has been very poorly sampled … despite its recognised lithium potential”.

The company’s summer field season will include detailed geological mapping and sampling.

Diamond drilling will be subsequently completed on key lithium targets identified from the mapping and geochemical sampling.

This article was developed in collaboration with Recharge Metals Limited, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.