ION Energy Limited said it is acquiring the Bliss Lake lithium pegmatite project in the Northwest Territories, Canada, with exploration to commence immediately.
Numerous pegmatites occurrences have been identified from Landsat images of the project, the largest of which has been interpreted to be more than 300 metres in strike length, the company said.
Located 30 kilometres from Yellowknife and 5 kilometres from road networks, the project is also less than 15 kilometres from Li-FT Power’s “Road Access Group” where several lithium-bearing pegmatites have been identified and samples at over 1% Li2O, according to ION.
"The company is very pleased to have signed a binding definitive agreement for the acquisition of 5,798 hectares Bliss Lake lithium project in the Northwest Territories,” said ION CEO Ali Haji in a statement.
“The prospect is within 10s of kilometres from other proven pegmatite fields and allows ION Energy to be a multi-jurisdictional, multi-asset company that has the ability to serve two major, established geographies.”
The all-equity transaction, which will consist of two equity tranches, will ultimately allow the seller of the project to gain a 5% interest in ION, the company said.
The first tranche will be $150,000 of company shares at a value of $0.35 per share and the second tranche will be $350,000 of company shares at a value of $0.35 per share subject to a four-month hold period.
The seller will also be granted a 1% net smelter royalty (NSR), with ION holding the right to repurchase one-half of the NSR at any time for $500,000.
ION is committed to exploring and developing high-quality lithium resources in strategic jurisdictions.
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