Hertz Energy (CSE:HZ, OTCQB:HZLIF) announced on Friday its acquisition of the Agastya Lithium Property in Quebec’s James Bay region, comprising 209 mineral claims across approximately 10,650 hectares.
The deal, structured through an arms-length option agreement with Prospectus Capital Inc. and Hertz’s wholly owned subsidiary Canuck Lithium Corp., bolsters the company’s presence in a region renowned for lithium exploration.
The Agastya property spans three non-contiguous claim blocks along the greenstone belt hosting significant lithium-cesium-tantalum pegmatite deposits.
While no mineral resources have been defined on the Agastya property, Hertz plans to pursue aggressive exploration efforts, leveraging approximately C$750,000 in flow-through capital dedicated to critical minerals.
Under the terms of the acquisition, Hertz will issue 8 million common shares to the vendor and grant a 2% gross metal royalty on all metals produced from the property.
In a separate development, Hertz confirmed it would not proceed with its Snake Lithium Project in the James Bay region following inconclusive results from earlier sampling programs. The company plans to concentrate its efforts on the Agastya property and other holdings, including the AC/DC Lithium and Harriman Antimony properties in Quebec, the Lake George Antimony Property in New Brunswick, and its Namibia Uranium Project.
Hertz also disclosed a C$60,000 loan agreement with CEO and director Kulwant Malhi. The one-year loan carries an 8% annual interest rate.
Hertz Energy (CSE:HZ, OTCQB:HZLIF) aims to advance its portfolio of critical mineral projects amid rising demand for lithium and other key materials for clean energy and technology applications.