ACME Lithium Inc. (CSE:ACME, OTCQB:ACLHF), the explorer, told investors it has entered Saskatchewan, striking deals with Gem Oil Inc to acquire the 41,694 hectare (Ha) Bailey Lake Pegmatite Discovery Area in the province.
The large claim area contains multiple indications of spodumene-bearing pegmatites with potentially economic-grade lithium.
Historical reported sampling by Gem Oil includes up to 3,950 parts per million (ppm) lithium in the Bailey Lake region, while sampling by the Saskatchewan Geological Survey includes results up to 3,470 ppm lithium at the Misaw Lake region to the east of Bailey Lake.
"ACME has established an aggressive strategy in identifying, acquiring, and exploring high-quality lithium properties in both Canada and the United States," said Steve Hanson, the CEO of ACME in a statement.
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"The Bailey Lake Pegmatite Discovery Area is an underexplored region with great potential and provides an important entry for ACME into the Province of Saskatchewan."
An initial interpretation for the Bailey Lake region is an albite spodumene or rare element spodumene type pegmatite in outcrop and boulder trains, while the Misaw Lake region contains a rare element complex lepidolite type pegmatite boulder train, said ACME.
ACME has entered two deals with Gem Oil. Under the terms of the option agreement, it must pay a total of C$450,000, issuing 450,000 shares, and incurring a total of C$1.554 million in exploration and development expenditures over three years to acquire 13 contiguous claims encompassing 25,900 Ha.
Gem Oil will retain a 2% Net Smelter Return (NSR) royalty.
ACME has also entered into a purchase agreement with Gem Oil to acquire five additional Bailey Lake claims comprising of 15,794 Ha for the sum of C$9,476.28 and the grant of a 1% NSR.
Saskatchewan is a highly prospective region for critical mineral development and ACME said the addition of the Bailey Lake claim to its extensive North American portfolio further positions the firm to "advance its goal to provide a domestic supply of lithium to the Canadian and United States markets".
Contact the author at giles@proactiveinvestors.com