Usha Resources Ltd (TSX-V:USHA) revealed that it has executed five options with 2758145 Ontario Ltd for the right to purchase 100% interest in five additional lithium pegmatite projects as part of its strategy to build a strong portfolio to complement its 100% owned flagship Jackpot Lake lithium brine project.
The projects in question are the Lee Lake, Mead, Bluett, Gathering Lake and Triangle Lake projects in Ontario. The five properties total 13,408 hectares, bringing Usha's lithium property portfolio in Ontario to seven properties covering 29,088 hectares.
“Each of these properties has the technical merit to be the next major discovery in Ontario’s growing lithium hotbed. As we leverage our experience and initial success at Jackpot Lake to help drive friendly terms for these latest acquisitions, our Australian relationships and on-going discussions are also heating up with the shared belief that all of our Canadian assets, including White Willow, can develop into successful and fiscally prudent partnerships that benefit our shareholders and move these projects forward while carefully managing our share structure,” Deepak Varshney, CEO of Usha Resources said in a statement.
Results from the first hole drilled at Jackpot Lake are pending. Usha is set resume drilling to 2,000 feet in order to complete well installation to the bottom of the basin and sample the higher-porosity sand and conglomerate zone, where the team believes the best potential brines may be located.
“This summer will be a very busy time for the company as we complete the initial two drill holes at Jackpot Lake and begin exploration of our hard rock assets,” Varshney added.
The CEO noted that Usha has working capital of approximately $3 million with "limited costs remaining" and flexibility to partner with strategic companies from Australia on its lithium pegmatite assets.
Usha now has assets within four additional major lithium-cesium-tantalum (LCT) pegmatite districts in Ontario with strong geological potential.
The company said the options were acquired for cash and shares. For Lee Lake the consideration was for $130,000 in cash and $450,000 in shares, for Bluett and Mead the figures were $62,500 and $412,500 respectively while for Gathering Lake and Triangle Lake the figures were $69,500 and $412,500 and $70,850 and $412,500 respectively.
The company it has granted the vendor a 2% net-smelter returns royalty for each of the five assets of which the company may purchase half at any time for consideration of $1 million per option.
Contact the author at jon.hopkins@proactiveinvestors.com