Fin Resources to acquire Mt Tremblant lithium project suite in Canada

Perth-based junior Fin Resources (ASX: FIN) has reached an agreement with a private vendor to acquire the Mt Tremblant suite of lithium projects in Canada.

The suite includes the Cancet West, Ross and Gaspe projects which collectively house 480 granted tenements and five pending claims over a total area of 130 square kilometres.

On completion of the transaction, Fin will embark on a program of detailed mapping and geochemical sampling to evaluate and rank areas of highest prospectivity and verify known pegmatite outcrops with a view to generate targets for drilling.

The acquisition is expected to diversify Fin’s commodity exposure and complement its existing projects in Western Australia at McKenzie Springs (nickel, copper, cobalt and graphite) and Sol Mar (salt).

Project suite

The Cancet West project is located in the prolific James Bay area of Quebec over more than 14km strike length of the Archean-aged Guyer greenstone belt, which also hosts the Corvette (owned by Patriot Battery Metals, ASX: PMT) and Cancet (Winsome Resources, ASX: WR1) lithium deposits to the east.

The Ross project encompasses 100sq km and is also located in James Bay over more than 30km strike of underexplored greenstone belt to the east of the large Whabouchi mine, which houses a resource of 36.6 million tonnes grading 1.3% lithium oxide and includes multiple mapped pegmatite occurrences. The project sits on the same belt as Omnia Metals’ (ASX: OM1) tenements.

The Gaspe lithium project is located within the Gaspe Peninsula in southeast Quebec. The company believes this project, which has one of the highest outcrops of lithium in the streams across Quebec, has the potential to host a lithium in clay deposit.

Capital raising

Fin has received firm commitments to raise $550,000 for budgeted exploration at its key projects over the next 12 months.

The capital will be raised through the placement of 30.55 million shares at $0.018 each.

Each share will have a free attaching option on a one-for-two basis with an exercise price of $0.03 and an expiry of two years from the date of issue.

Leading Melbourne boutique, Peak Asset Management, has been appointed lead manager to the raising.

The company will be paid 6% on funds raised and will be issued 4 million broker options on the same terms and price as the placement.

Terms of the deal

Under the terms of the deal, Fin will pay an upfront cash consideration and issue 24 million shares to the vendor plus additional shares over three tranches on the achievement of certain technical milestones.

The first tranche will see Fin issue $375,000 worth of shares to the vendor on the achievement of exploration results grading at least 2% lithium oxide in spodumene or pegmatites across any of the tenements.

The second tranche will see the same amount of shares issued when Fin reports at least one drill intercept result of greater than 10 metres grading at least 1% lithium oxide per tonne.

The final tranche will total $500,000 worth of shares on the announcement of an inferred mineral resource of at least 10 million tonnes grading more than 1% lithium oxide.

The deemed issue price for each tranche will be equal to the 30-day volume weighted average price of Fin shares up to the date on which the relevant milestone is met.

Each tranche is subject to shareholder approval and if approval is not obtained, the relevant milestone value shares will be paid in cash.