Rapid Lithium expands North American critical minerals portfolio with Canadian acquisition

Rapid Lithium (ASX: RLL) is looking to take advantage of recent Chinese market manoeuvres by adding to its North American critical minerals portfolio with a range of claims in Canada.

Under the term sheet of the proposed deal, Rapid Lithium and Broadstone Resources are aiming to conclude formal agreements covering the Prophet River gallium-germanium project in British Columbia.

The proposal comes on the back of Rapid’s recent purchase of numerous critical minerals projects in the USA.

Timely acquisition

“The Rapid Lithium board sees this acquisition as very timely given China’s recent announcement that it is banning exports of gallium, germanium and antimony to the US,” managing director Martin Holland said.

“China’s dominant position in the global supply of these minerals, accounting for 98.8% of refined gallium and 59.2% of refined germanium production, means that sources outside China will be in high demand.

“The location of the assets is also complementary to Rapid’s US lithium assets as the company seeks to become a key supplier of critical minerals in the future.”

Germanium samples

Historic Prophet River bulk samples have reported some of the highest germanium values recorded globally.

Germanium and gallium have become exceptionally high-value strategic metals used in the technology sector for semiconductors, fibre optics, solar cells, magnets, batteries and LEDs.

The mineral claims provide a 100%-interest in a 2,110 hectare area covering the historic Cay Mine and surrounding prospective areas.

Previous exploration at the Prophet River project includes 21 drill holes, with bulk samples from two zones grading up to 22.69% zinc, 40 grams per tonne gallium, 1,500 parts per million germanium and 0.36% lead.

Purchase consideration

To acquire the new assets, Rapid will pay approximately $145,000 within 15 days of the proposed transaction’s completion.

It will also issue the seller 133.3 million fully paid ordinary shares and 40 million options.

The options will have an exercise price of $0.015 per share and an expiry three years from the issue date.

Capital raising

Rapid announced earlier this month that it was conducting a partially underwritten entitlement offer to fund the company’s US exploration.

The offer will raise as much as $2 million via a 1-for-1.46 pro-rata non-renounceable entitlement offer to existing shareholders.

The majority of the funds raised are to be applied towards exploration at a number of new projects the company has acquired, or is in the process of acquiring, in the USA.

Rapid also signed a binding agreement in early November to acquire 100% of the issued capital of New Energy (US) Inc., a subsidiary of Patriot Lithium (ASX: PAT), positioning the company as one of the leading strategic landholders in South Dakota.