New Age Metals Inc (TSX-V:NAM, OTCQB:NMTLF) told investors that it has acquired 4,338 hectares of mineral claims in Northern Manitoba’s South Bay pegmatite field which comprise the SouthBay Lithium project.
The company noted that all the claims are held by its 100%-owned lithium division, Lithium Canada Development, and are independent of the agreement it has with partner Mineral Resources Limited in Southern Manitoba.
The South Bay pegmatite field is known to host LCT-type rare metal pegmatites of the beryl-columbite subtype, and the area is prospective for lithium and cesium, it added.
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“The property has excellent potential for lithium in a region that has been historically underexplored,” New Age Metals CEO Harry Barr said in a statement. “These acquisitions confirm our commitment to our lithium division, adding another road-accessible property in a favorable mining jurisdiction”.
New Age Metals said it continues to expand its Manitoba lithium division’s land holdings as a leading explorer for battery metals in the province. The company has 11 projects in Southern Manitoba which are under option to Mineral Resources Limited, one of the top 5 lithium producers worldwide.
About the SouthBay Lithium project
The company noted that the SouthBay Lithium Project consists of 19 claims covering 4,338 hectares and encapsulates the South Bay rare metal pegmatite dyke swarm in northwestern Manitoba.
The property is transected by an all-weather road and a power line. The property is 65 kilometers east of the historic mining town of Leaf Rapids and 40 kilometres east of the past-producing Ruttan zinc-copper base metal deposit.
The SouthBay Lithium project hosts numerous pegmatites which are interpreted to be part of a large granite-associated pegmatite field that extends for several kilometres both north and south of the property. Several pegmatite dykes have been identified by previous operators on the claims which have not yet been subject to geochemical sampling. These pegmatites are reported to carry a variety of uncommon minerals including beryl and tourmaline.
In 2019, a biogeochemical survey completed by the previous operator, Mount Morgan Resources, defined anomalous responses in numerous elements including lithium and cesium. The anomalies correspond with historic enzyme leach soil geochemical anomalies from a 2005 survey completed by Tantalum Mining Corporation of Canada. Both survey types documented elevated lithium, cesium, tantalum, and a host of other metals in association with complex pegmatites.
Working with its consultants, Axiom Exploration Group, New Age Metals said it is currently preparing a Go-Forward exploration plan for the project, and recommendations will be forthcoming.
Warrant amendments
The company also announced that it intends to apply to the TSX Venture Exchange to amend the expiry date of an aggregate of 31,116,675 share purchase warrants to extend the original expiry dates by two years. All other terms and conditions of the warrants will remain the same.
Of the 31,116,675 warrants proposed for amendment, 26,741,673 warrants entitle the holders to purchase one common share of the company at a purchase price of $0.20 per share and 4,375,002 warrants entitle the holders to purchase one common share at a purchase price of $0.25 per share.
The warrants proposed for amendment have original expiry dates of March 18, 2023, March 23, 2023, March 31, 2023, and August 25, 2023. The warrants were issued under private placements which closed on March 23, 2021, and August 25, 2021. Under Exchange policy, no agent warrants will be extended. The proposed amendments are subject to regulatory approval.
New Age Metals is a junior mineral exploration and development company focused on the exploration and development of green metal projects in North America. It has two divisions: a Platinum Group Metals division and a Lithium/Rare Element division.
Contact the author at stephen.gunnion@proactiveinvestors.com