Canada-based junior exploration and development company Platinex has signed a binding letter of intent (LoI) to acquire the Muskrat Dam critical minerals project in Ontario, Canada.

The Muskrat Dam project is located around 125km northeast of Frontier Lithium’s PAK lithium project and 125km northwest of Newmont’s Musselwhite gold mine.

The project contains six property blocks, which cover a collective 10,950ha area in the highly prospective Muskrat Dam Lake (MDGB) and Rottenfish (RGB) greenstone belts.

Platinex will acquire a 100% stake in the Muskrat Dam critical minerals project by way of an earn-in option agreement, through its subsidiary, Endurance Elements.

The company will make a cash payment of C$25,000 ($18,382) upon closing, issue C$25,000 within 60 days of closing, and make another 200,000 in three years.

Platinex CEO Greg Ferron said: “The acquisition of the Muskrat Dam Project fits well with our strategy of acquiring large-scale projects in significant greenstone belts in Ontario.

“This acquisition is being completed on attractive earn-in terms with a low up-front cost.

“Our initial focus will be to confirm the nature of mineralisation at the Axe Lake Property and potential lithium grades through a prospecting and evaluation program.”

The project includes the Axe Lake Property with the potential to host lithium-bearing pegmatites and contains compelling Cu-Ni-PGE, gold, and chromite targets.

It includes the northwest-trending Axe Lake deformation zone (ALDZ), a major high-strain zone interpreted to pass through the property.

The Muskrat Dam project also includes the Windigo gold property, located at the southeast end of MDGB, with gold associated with pyrite-chalcopyrite and occurs in quartz vein lenses

In addition, the project also includes the Rottenfish property and the Fox Bay Property

Platinex said that the acquisition of the Muskrat Dam project will strengthen its position as a significant player in critical mineral exploration in Ontario.

The W2 Cu-Ni-PGE project controls the Lansdowne House Igneous Complex, an important feature of the Oxford Stull Dome, near the Ring of Fire region in Ontario.