Australian lithium explorer and developer, Oceana Lithium, has made a significant move by acquiring 100% ownership of Monaro Lithium Canada from Noranda Royalties in a joint cash and shares deal. The purchase includes an upfront payment of A$225,000 ($170,000) and up to 9.5 million Oceana lithium shares, valuing the transaction at approximately A$3.45 million ($2.6 million). With this acquisition, Oceana Lithium marks its first foray into the Canadian market, expanding its portfolio that already includes projects in Brazil and Australia.
Monaro Lithium Canada holds the rights to 207 mineral claims, encompassing the highly prospective Monaro Lithium Project in Quebec, Canada. Spanning over 104 km², the project area is situated in the renowned James Bay region, known for its rich lithium exploration opportunities. Several global mining companies, including the industry giant Rio Tinto, have already invested in lithium projects within this region.
Oceana’s Chairman, Gino Vitale, emphasized the significance of the deal, stating that the acquisition consolidates over 40km of contiguous Archean greenstones with geological features highly favorable for LCT-type lithium mineralization. Notably, the package includes known pegmatites and extensive greenstone-granite contact zones, which have been instrumental in major discoveries in the area. The proximity to Winsome Resources’ Adina lithium discovery, which revealed high-grade lithium deposits, further underscores the potential of the Monaro Lithium Project.
In preparation for exploring and potentially developing the Monaro Project, Oceana Lithium is raising capital through a share placement. The company has received overwhelming interest, leading to an oversubscribed placement that will provide $4.1 million from the offering at $0.32 per share. These funds will support the company’s exploration efforts not only in Canada but also ongoing projects in Brazil and Australia, including its Solonópole and Napperby projects.
For Noranda Royalties, divesting its ownership in Monaro Lithium Canada represents a strategic move that may allow the company to focus on other ventures or realize the value of its lithium assets in the James Bay region.
As Oceana Lithium ventures into Canada, this acquisition signals the growing importance of lithium mining in the global drive for renewable energy and electric vehicle technologies. With the acquisition of the Monaro Lithium Project, Oceana positions itself to tap into the vast potential of the James Bay region and contribute to the sustainable development of lithium resources for the future.
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