TomaGold Corporation revealed that it has entered the lithium space, acquiring 107 claims in the James Bay region of Quebec, Canada.
The group said it has bought 38 claims from Noranda Royalties for C$60,000 in cash, along with 69 further map-designated claims covering a total area of 5,487.52 hectares (Ha).
All the claims are near the James Bay Lithium Brisk project, which is optioned by Monger Gold and along from the Trans-Taiga regional road and power line infrastructure, around 5 kilometres from the LG-3 airport.
"Historically, there has been no lithium exploration activity on the project, with the exception of a historical spodumene-bearing pegmatite showing that was identified by the Quebec Ministry of Energy and Natural Resources on June 17, 2015. The corporation will soon begin a sampling and prospecting program on its entire property," TomaGold said In a statement.
READ: TomaGold says IP survey results reveal strong geophysical anomalies on Obalski property in Quebec
As well as paying C$60,000 in cash in stages for the Noranda Royalties claims, TomaGold said it will issue 1 million of its shares at closing. Noranda Royalties will also receive a 2% net smelter return (NSR) royalty, of which 1% can be purchased back by TomaGold for C$1 million in cash.
Updating on its Oblaski project in the Chibougamau region, TomaGold also said that a 2,947 metre (m) drilling program has now been completed and all samples have been sent to the lab.
"A total of six holes were drilled in the new zone to the south that was identified by the 3D induced polarization (IP) survey conducted this winter. The corporation will soon carry out new IP geophysical surveys in these last six holes and in old holes deemed relevant in the same area," it added.
Explorer TomaGold is focused on gold, lithium and rare earth element projects. It has interests in five gold properties near the Chibougamau mining camp in northern Quebec: Obalski, Monster Lake East, Monster Lake West, Hazeur and Doda Lake, as well as a 24.5% interest through a joint venture with Evolution Mining Ltd and New Gold Inc in the Baird property, near the Red Lake mining camp in Ontario.
The company also has a 100% interest in a lithium property in the James Bay region of Quebec.
Contact the writer at giles@proactiveinvestors.com