Lithium aspirant Sultan Resources has completed a $1.5m cap raise and is finalising the purchase of two hot lithium projects in Ontario, Canada’s ‘Goldilocks’ zone.
The company has received the all clear to complete its landmark acquisition of two Canadian lithium projects after receiving the second tranche of its recent share placement.
Sultan Resources (ASX:SLZ) raised a total of $1.5m from the issue of 30 million shares at 5c per share from sophisticated investors.
It will now complete the acquisition of the Kember Lake lithium project from Frontier Lithium and the Ruddy project – north of fellow Australian explorer GT1’s projects, from XS Minerals.
It will issue a total of 34,905,660 shares worth $1.85m at a price of 5.3c, with $185,000 Australian cash and C$6000 going to XS and C$120,000 to the Canadian vendors, who will retain a 1.5% new smelter royalty.
Kember Lake is next door to Frontier Lithium’s Spark deposit, where it intersected an impressive 398.2m @1.88% Li2O including a 23.4m zone at 3.12% and recently upgraded its total resource to 18.8 million tonnes (mt) with an average grade of 1.52% Li2O indicated and 29.7mt with an average grade of 1.34% Li2O inferred resources.
Underexplored Ruddy is thought to contain meta-volcanic and meta-sedimentary lithologies on the margins of the Allison Lake Batholith that could potentially contain fractionated pegmatite dykes.
Sultan said it’s continuing its review of historical data and is already advanced in its planning for exploration activities at both projects.
This article was developed in collaboration with Sultan Resources, 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.