Sultan Resources is one step closer to acquiring the Kember and Ruddy Lithium Projects in Ontario, Canada, having completed the second tranche of its recent placement and raising a total of $1.5 million dollars towards the acquisition of the pair of promising projects.
Promising Placement Paving the Way
Sultan issued a total of 30 million shares at 0.05c per share over two tranches to raise funds from a number of completion of resource experienced sophisticated and high net worth investors for the placement, with this second tranche comprising 10 million ordinary shares and raising $500 thousand dollars.
Completion of the placement is a precedent condition to the settlement of the acquisition announced in March and with funds in hand, the Company is now set to move forward with finalising the acquisition.
Alongside funding the acquisition of the pair of lithium projects, money from the placement will also fund the follow-up drilling of Sultan’s Kulin Hill Nickel/Cobalt Project.
Claiming Canadian Lithium
The two highly prospective properties are located in well-established lithium-bearing districts in Ontario, and despite only just completing the placement, Sultan has already been hard at work planning exploration activities for the two projects ahead.
The first of the Projects is Kember Lake, which is located in North Western Ontario and is just 5km away from properties held by Frontier Lithium, where over 398 metres of pegmatite averaging 1.88% Li2O was intersected recently, including a 23.4m zone of 3.12% Li2O, demonstrating the districts lithium potential.
While there has been no recorded exploration of Kember, mapping undertaken by the Geological Survey of Ontario has historically recorded the presence of pegmatitic granites on the property, which the Company is now investigating.
Ruddy Lake meanwhile sits on the northern extremity of the Allison Lake Batholith, which is believed to host the optimal geology for the potential development of lithium, caesium and tantalum-bearing pegmatites, with the Ontario Geological Survey stating that the established margins of the Allison Lake Batholith as an important new target for rare-element mineralisation.
The Project is located adjacent to the Allison Lake Project held by Green Technology Metals, who also believe that the western and northern margins of the Allison Lake Batholith may be the optimal position for the development of highly fractioned pegmatites, terming the margins as a “Goldilocks Zone”.
Sultan is now looking to secure experienced geological consultants based in Canada to kick off an early start to the country’s upcoming field season in summer.
SLZ’s Australian Stock Exchange-listed is currently selling at 5c (11:50 am UTC+ 8 hours).