Valor Resources (ASX: VAL) has advanced its agreement with Pegmatite One Lithium and Gold Corp (CSE:PGA), initially announced in December last year, by finalising a definitive purchase option agreement to secure 100% ownership of the highly prospective Frazer Lake Lithium Project in Ontario, Canada.
Terms of the Deal
Upon signing the agreement, Valor will make a cash payment of $80,000 to PGA.
Other key terms include issuing 30,000,000 shares at a deemed price of $0.004 per share or $120,000 cash, at Valor’s discretion, upon the commencement of on-ground field-based exploration activities or by June 1, 2024, whichever comes earlier.
An additional 30,000,000 shares at the same price or $120,000 cash, also at Valor’s discretion, will be due three months after the start of on-ground field-based exploration activities.
In the event Valor chooses to proceed with the 100% acquisition, it must issue 1,000,000,000 shares on a pre-consolidation basis.
With the Frazer Lake Lithium Project, among three promising lithium projects in northwestern Ontario, standing out for its potential, Valor has secured a cost-effective option to obtain a collection of promising lithium projects.
Valor’s addition of the Frazer Lake Lithium Project complements its extensive portfolio, featuring uranium and rare earth assets in Canada’s renowned Athabasca Basin, while concurrently advancing toward finalising a definitive agreement for the Morrison Lake Property and completing the acquisition of the Jesaulenko project.
Frazer Lake Lithium Project
The Frazer Lake Lithium Project, covering 83.1 square kilometres in northwestern Ontario, has shown promising lithium potential since its spodumene discovery in August 2023, with recorded grades of up to 7.25% Li2O.
Figure 1: Spodumene Bearing Pegmatite from Channel Sampling.
The spodumene-bearing pegmatites on the property have already been mapped and channel sampled, with the recent channel sampling returned results including:
- 44 metres at 0.54% Li2O, including 3 metres at 0.97% Li2O
- 3 metres at 1.27% Li2O, 1 metre at 1.76% Li2O
- 2 metres at 0.87% Li2O
The Project boasts an estimated 30-metre-wide outcrop of spodumene-bearing pegmatite, extending uninterrupted to the northeast, awaiting drill testing.
A continuous channel sample, spanning 49 metres, was conducted obliquely to the spodumene-bearing pegmatite’s strike, with pegmatite identified along 47.5 metres of the channel’s length.
Upon transaction completion, a follow-up channel sampling along the northeast strike is proposed to finely delineate the mineralisation’s geometry and extent.
Figure 2: Plan View of Frazer Lake Channel Sample and Li2O assay values
Valor Resources‘ Executive Chairman, George Bauk, provided insight on the agreement.
“We are pleased to have signed a definitive purchase option agreement on the Frazer Lake Lithium Project as we continue to methodically tick the various boxes towards the repositioning of Valor as Thunderbird Resources over the next few months,” he said.
“The Fraser Lake Lithium Project is a potentially exciting addition to our portfolio, and we look forward to getting teams on the ground to commence initial exploration activities. Our aim is to finalise the lithium transactions in the coming weeks and will be working to get on the ground as soon as possible.”
VAL’s Australian Securities Exchange-listed share price is currently trading at $0.003 (1.15pm UTC+ 8 hours).