SPOD Lithium Corp. is a mineral exploration company focused on the acquisition and development of mineral properties containing battery, base, and precious metals
Spodumene bearing pegmatite boulder from the North Nipigon Project. (Credit: Spod Lithium Corp.)
SPOD LITHIUM CORP. (“SPOD” or the “Company”) (CSE: SPOD) is pleased to announce that it has entered into a property purchase agreement dated as of November 16, 2022 (the “Agreement”) with arm’s length vendors (the “Sellers”) respecting the North Nipigon exploration property (the “Property”) as shown in Figure 1. The Property is comprised of a total of 403 mineral claims located north of the town of Nipigon in the Province of Ontario. Each of the Sellers is arm’s length to the Company.
The North Nipigon Project, comprised of three blocks of claims covering approximately 8,475 hectares, is accessible by four season roads and forestry trails. The Property is underlain by Archean metasediments and granites, along with Keweenawan age diabase. Pegmatites in the region occur close to and within the granitic plutons. The Property shares borders with RockTech Lithium’s Georgia Lake Project, Imagine Lithium’s Jackpot Lithium Project, and Ultra Lithium’s Georgia Lake Project. RockTech’s Project contains a compliant measured resource of 2.31Mt of 1.04 % Li20 and a compliant indicated resource of 4.31Mt of 0.99 % (Technical Report, NI 43-101, Preliminary Economic Assessment, Georgia Lake, March 15 2021). There are numerous other known pegmatite occurrences in the region as shown in Figure 1, of which many have been drilled with positive results. On the North Nipigon Project, there have been historical grab samples of pegmatite boulders which returned assay values of 0.764 % Li2O and 0.685 % Li2O as shown in Figure 2 (Ontario Geological Survey AFRI 20000019444).
Under the Agreement, SPOD will acquire the Sellers’ undivided 100% interest in and to the Property by making an aggregate cash payment of $65,000 and by issuing an aggregate of 4,000,000 Class A common shares of SPOD (each, a “Share”) to the Sellers on the closing date under the Agreement. The Shares issued under the Agreement will be issued at a price of $0.225 per Share and will be subject to a four month hold period pursuant to applicable securities laws.
The Property is subject to a 2% net smelter return royalty in favour of the Sellers. The parties intend to negotiate and execute a royalty agreement within six months.
Source: Company Press Release