Critical Resources Ltd (ASX:CRR) has dotted the I’s and crossed the T’s on its Graphic Lake Lithium Project acquisition in Canada.
The resources stock finalised the Ontario-based lithium and rare earth elements asset acquisition after confirming the buy did not require Canadian Investment Review Board approval.
Graphic Lake marks an extension of Critical’s existing assets in Canada, situated roughly 180 kilometres from the company’s newly acquired Mavis Lake Lithium Project.
CRR says the acquisition strengthens its lithium exploration footprint in an underexplored and emerging lithium province in Ontario.
“Natural synergies are clear”
Speaking to the acquisition’s settlement, Critical Resources managing director Alex Biggs said: “The final acquisition of Graphic Lake is a clear demonstration of our intent to develop our business in Canada.
“The natural synergies with our Mavis Lake asset are clear, both from a commodity and exploration standpoint.
“Graphic Lake presents an exciting opportunity to conduct exploration works to further define and understand the pegmatite trend from the northeast to the southwest across the property.
“Recent additional ground acquisitions have further increased our exploration opportunities across this exciting asset.
“We look forward to starting our work programs and will keep the market updated.”
The fine print
In exchange for the lithium asset, CRR will hand over:
- An A$80,000 cash payment (including the A$10,000 paid as an option fee);
- A$120,000 worth of CRR shares (calculated at the 20-day volume-weighted average price); and
- A 1.5% net smelter royalty, capped at C$500,000 with the option to purchase at any time for C$500,000.
With the acquisition now settled, Critical intends to pay out the required cash and shares in the coming days.
About Critical Resources
Critical is a base metals and lithium exploration and development focused company headquartered in Perth, Western Australia.
Recently, the company has engaged in a structured process of change at the director and executive level.
These changes represent a renewed focus on providing shareholder value through exploring, developing and advancing the company’s long-held NSW assets, newly acquired lithium assets in Canada and copper assets in Oman.