Narryer Metals Acquires Major Stake in Canadian Lithium-Tantalum Projects
Narryer Metals has announced a strategic deal to acquire a 70% stake in two promising lithium-tantalum projects, Big Hill and Fran, located in the Northwest Territories' Yellowknife Lithium Province, Canada. This move marks a significant step in Narryer Metals' expansion into the North American lithium market, with the projects situated in the mineral-rich Archean Slave Craton, known for its 50 lithium occurrences.
Covering an expansive area of 98km², the Big Hill and Fran Projects are poised to explore the vast potential of lithium and tantalum mineralization in the region. Big Hill, spanning 62km², is noted for its proximity to Li-FT Power's BIG lithium project and recent spodumene-bearing pegmatite discoveries. The Fran Project, located about 10km north of Big Hill and covering 36km², exhibits lithium and tantalum mineralization across three known pegmatite dyke swarms.
With the deal's approval, Narryer Metals is set to initiate drill permitting and commence fieldwork by May 2024, including a diamond drilling program to further assess the project sites' potential. Highway shareholders will retain a 30% interest in the projects.
The acquisition terms involve Narryer Metals making an initial payment of A$50,000 ($33,066.50) in cash and 12.5 million fully paid ordinary shares. Additionally, the agreement includes a 1.5% net smelter return royalty on lithium production revenue and a 2.5% NSR on other mineral revenues, with deferred consideration based on exploration success.
To facilitate the acquisition and exploration efforts, Narryer Metals has also secured A$1.05 million in funding through the placement of 26.25 million shares. These funds will support the advancement of exploration work at both the Big Hill and Fran projects.
Dr. Gavin England, managing director of Narryer Metals, expressed enthusiasm for the venture, emphasizing Canada's crucial role in the North American lithium battery supply chain. The acquisition near Yellowknife represents an exciting opportunity for Narryer Metals to explore hard rock lithium in Canada's Archean cratons.
