Lightning Minerals, an Australian Stock Exchange (ASX) listed mineral exploration company, has signed a binding letter of intent (LOI) with Lithium Rabbit Quebec to acquire two projects in the prolific lithium region of James Bay, in the Canadian province of Quebec.

The move is aligned with Lightning Minerals’ plan to develop a portfolio of high-quality lithium and critical minerals assets in tier-one jurisdictions. The company’s flagship property Dundas Project is located in Western Australia.

Under the terms of the LoI, Lightning Minerals plans to acquire 100% stake in the Dalmas Project and Hiver Project.

The 47km2 Dalmas Project is located around 45km to the east of Winsome Resources’ Adina lithium Project. It comprises felsic intrusive lithologies juxtaposed against greenstone and metasedimentary units.

The property is expected to host pegmatite emplacement and lithium-caesium-tantalum (LCT) mineralisation potentiality.

The Hiver Project includes an area of 32km2 and is situated adjacent to Megado Resources’ Cyclone lithium Project. It is considered to have a geologically favourable host environment for hard rock LCT pegmatite style mineralisation.

The LoI grants Lightning Minerals an exclusivity period of 60 days for a cost of A$30,000. The company will conduct due diligence on the projects during this period.

Subject to various conditions, the mineral exploration company will sign a definitive agreement to acquire the two properties within 45 days of signing of LoI.

As agreed, Lightning Minerals will pay an additional A$220,000 in cash and issue A$250,000 in ordinary shares as consideration for the acquisition.

The vendor will also be entitled to a 2% Net Smelter Royalty, of which 1% may be bought back by the acquirer for A$1m.

Lightning Minerals CEO Alex Biggs said: “This acquisition will be a significant step forward for the Company in its exposure to lithium. Having ground positions in two of the most prospective lithium regions globally, Western Australia and Quebec is an excellent opportunity.

“We have been actively pursuing project acquisition opportunities both in Canada and Australia since our listing in November 2022 and have reviewed multiple projects. As we grow the Company, we look to build our project pipeline with high quality additions to our portfolio, presenting upside to investors that is relevant to the global push towards electrification and green energy.”