Corcel plc has signed an exclusive 30-day option to acquire 100% of the lithium rights of the Canegrass project in Western Australia.
CANEGRASS
The project, comprising several granted mineral tenements, extends over part of the Windimurra Igneous Complex, a large differentiated layered ultramafic to mafic intrusion within the Yilgarn craton.
Canegrass is a conical to sheet-like body intruded into the Archaean granite-greenstone terrain of the Murchison Province, outcropped over 2,500 km2 and has an age of around 2,800 Ma*.
Corcel said that historic exploration comprised satellite imagery interpretation, geochemical sampling, rock chip sampling and an initial phase of drilling.
The high degree of outcrop exposure and lack of vegetation meant that satellite imagery interpretation would provide “rapid low-cost evaluation” initially to review and target pegmatite swarms.
“The Canegrass lithium project, which sits next to (and could be an extension of) Aldoro [Resources Ltd]’s existing pegmatite project, has generated rock chip sample grades of up to 2% Li20 and rubidium grades of up to 1.8% and is ripe for near term high impact drill activity,” added chief executive Scott Kaintz.
TRANSACTION
During the option period, Corcel will pay vendor Huntsman Exploration Inc a non-refundable £20,000.
The company has started due diligence and, if it acquires Canegrass, will issue Huntsman 50,000,000 new ordinary shares at a deemed issue price of 0.4p equating to £200,000 in aggregate.
This represents a 34% premium on the closing price on 21 February 2023 and is also the entry price of Corcel’s new cornerstone investor, announced in December 2022.
*one million years
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