Pioneer Lithium launches IPO to fund lithium exploration plans in Canada
Well-credentialled newcomer Pioneer Lithium is the latest Australian junior explorer to take up a significant position in the surging Canadian lithium hunt.
Pioneer, which is looking to list on the ASX with the proposed code of ‘PLN’, has launched a $5 million initial public offering (IPO) to support its plans to hit the ground running in Ontario and Quebec to test the significant lithium potential the company has already identified.
The company has entered into option agreements to acquire interests in three prospective lithium projects to date – the Root Lake (90%) and Lauri Lake projects in Ontario (100%) and the La Grande (100%) lithium project in Quebec.
To lead the focus on progressing its positive exploration portfolio is a team of industry veterans with a record of success in finding lithium in Canada, led by executive chair Robert Martin, which has already played a major role at Critical Resources (ASX: CRR) with a market cap of around $80 million and Battery Age Minerals (ASX: BM8), which has a $30 million market cap.
Highly regarded team
The highly experienced Pioneer board and management team have completed a combined 50,000m plus of drilling in Canada in their various roles.
Executive chairman Robert Martin brings more than 25 years’ experience to this role.
He currently holds the positions of: non-executive chairman of Critical Resources, non-executive chairman of Battery Age Minerals, non-executive chairman of Equinox Resources (ASX: EQN), non-executive director of Parkd (ASX: PKD) and director of TSX-V listed Volt Carbon Technologies (TSX-V: VCT).
The company’s non-executive directors include Nigel Broomham, with over 12 years’ industry experience, highlighted by more than 10 years in the battery metals sector, specifically in lithium and manganese.
He is joined by Gerard O’Donovan who has close to 15 years of success in managing large scale construction and mining development projects and operations across various commodities including lithium, copper and iron ore.
Also on the team is Agha Shahzad Pervez, who has over 10 years’ experience in working with ASX listed companies.
He is currently the executive chairman of Viridis Mining & Minerals (ASX: VMM) which recently acquired a world class rare earths project in Brazil.
Once the company is listed it intends to name Clinton Booth as chief executive officer.
Mr Booth’s background includes over 20 years’ experience in the mining and energy sectors, including experience in lithium exploration, development and operations across hard rock and brine deposits.
He has previously held senior positions at Fortescue Future Industries, Galaxy Resources (now Allkem (ASX: AKE)) and Sundance Resources.
Prime assets identified
Mr Martin said Pioneer’s primary initial focus will be on the exploration and development of the Root Lake project in the Red Lake lithium district of Ontario.
The Ontario tenements are well located between two known lithium deposits held by Green Technology Metals (ASX: GT1) – the Root Bay deposit (JORC 2012 resource of 8.1 million tonnes at 1.32% lithium oxide) and the McCombe deposit (JORC resource of 4.5 million tonnes at 1.01% lithium oxide).
“We are very pleased to bring this highly prospective lithium exploration portfolio to investors through the Pioneer Lithium IPO. The Root Lake project represents an exceptional opportunity, lying between two existing deposits, with compelling potential for future exploration to extend this known lithium mineralisation onto Pioneer’s ground,” Mr Martin said.
“Previous exploration has already confirmed the presence of high-grade spodumene mineralisation at Root Lake and we are very much looking forward to getting on the ground to get our maiden exploration program underway as soon as we’ve completed our ASX listing.”
“With drilling permits already in place, our aim will be to work towards the rapid delineation of a maiden mineral resource estimate at Root Lake, while also progressing early exploration works at our other critical mineral projects, Lauri Lake and La Grande.”
Historical drilling unveils lithium promise
Historical drilling at Root Lake has confirmed the presence of coarse-grained spodumene-rich pegmatite mineralisation.
With drill permits already in place, Pioneer says it will waste no time gaining early drilling access following completion of the IPO.
The company is already planning to establish relationships with First Nations groups and commence environmental baseline surveys, with a summer field works program including lidar and ortho imagery, magnetic surveys and field prospecting at Root Lake scheduled to commence in September.
The company is looking to begin its maiden drilling program in October.
James Bay lithium target
Pioneer Lithium’s La Grande project is located in the “red hot” James Bay lithium region of Quebec and is made up of three prospects (La Grande-River, La Grande-Quatre West, and La Grande-Quatre East) spanning a total area of 4,687 hectares.
The project is located strategically along trend from Patriot Battery Metals’ (ASX: PMT) Corvette lithium project, 20km west of Winsome Resources’ (ASX: WR1) Cancet project and 25km north-east of Loyal Lithium’s (ASX: LLI) Brisk project.
The La Grande project has received almost no historical exploration and Pioneer believes it represents an exciting, grassroots exploration opportunity in this world-class lithium district.