Recharge Metals snaps-up Express lithium project in Canada’s prolific James Bay region
The Express lithium project is located within an emerging world class lithium province.
Recharge Metals (ASX: REC) has joined a number of early movers in Canada’s James Bay region, which is becoming increasingly well-known as a world-class lithium province, with the acquisition of the Express pegmatite project.
The company emerged from a trading halt today, with news it was acquiring the lithium project, which is only 12km south of Allkem’s (ASX: AKE) James Bay deposit and 15km east of Cygnus Metals’ (ASX: CY5) Pontax asset.
The nearby James Bay deposit has a reserve of 37.2 million tonnes grading 1.3% lithium.
Other nearby projects are Nemaska Lithium Inc’s Whabouchi asset, which has a reserve of 36.6Mt at 1.3% lithium; Sayona (ASX: SYA) and Piedmont’s (ASX: PLL) Abitibi lithium hub, with resources of 119.1Mt at 1.05% lithium; and Critical Elements’ (TSXV: CRE) Rose project with 26.3Mt at 0.87% lithium in reserves.
Express comprises 139 mineral claims across two contiguous blocks in the prolific James Bay region, Quebec. All-up, the project spans 73.5 square kilometres and outcropping pegmatites have already been noted.
Recharge is acquiring Express from DG Resource Management (DGRM), which vended the world-class Corvette asset to Patriot Battery Metals (ASX: PMT).
Patriot’s drilling at Corvette has unearthed broad and high-grade intercepts including a stand-out of 156.9m at 2.12% lithium at the CV5 pegmatite.
Recently appointed Recharge managing director Felicity Repacholi-Muir said James Bay was “emerging as a world class lithium province” and that the company’s newly acquired Express project was “right at the heart of it” surrounded by “significant” lithium resources and discoveries.
“We look forward to unlocking the lithium potential at Express with the expertise and input of highly respected Dahrouge Geological Consulting team, who importantly are based in the region.”
Acquisition terms
To ensure it has required funds to acquire Express and undertake exploration, Recharge has completed a $2.5 million placement.
Sophisticated and professional investors participated in the placement, which will see 25 million shares issued at $0.10 each.
In consideration for Express, Recharge will pay C$250,000 in cash, plus 22.5 million ordinary shares and almost 6.19 million options. The options will be exercisable at $0.20 within three years of being issued.
Further shares will be issued upon Recharge meeting various milestones at Express including reporting at least five rock chips with grades exceeding 1% lithium, achieving intercepts of at least 5m at 1% lithium, and development of a JORC resource with a minimum 10Mt at 1%.
DGRM will also have a 2.75% gross smelter return royalty from any revenue generated from express.
Also under the deal, a related party to DGRM, Dahrouge Geological Consulting, will provide a geological consulting service to Recharge at Express.
Express lithium project
James Bay has seen minimal modern exploration despite emerging as one of the world’s most endowed lithium terrains.
Express has the advantage of proximity to advanced lithium projects along with well-established towns, sealed roads, hydro-generated power, and airports.
The project is about 8km off the James Bay road and adjacent to Hydro-Quebec powerlines.
Although outcropping pegmatites have been observed at Express, Recharge said minimal exploration at the project had focused on lithium.
Ms Repacholi-Muir said the Recharge board believes Express is an “exceptional opportunity” to create value for shareholders.
The company’s initial exploration program will comprise high-resolution aerial surveys and magnetics to define target areas ahead of a summer field campaign.