Canadian mineral explorer GBML has entered an exclusive option to acquire six additional licence block mining claims next to its PL 1597 Knockeen lithium pegmatite within the Leinster project in Ireland.
GBML signed an option agreement with Tancred Resources to secure the rights to earn these neighbouring claims, which cover an approximate total area of 249km².
With the addition of these claims, GBML’ Leinster lithium project will now grow to around 775km², comprising about 22 mineral claims.
The company agreed to pay $25,000 (C$33.630) in cash upfront within three business days of the date of the agreement.
Within the next 18 months, it will issue 500,000 share purchase warrants, each priced at $0.30. They will be exercisable 18 months from the date of issuance. Along with these, it will also issue shares with a total value of $75,000.
Only after completing these conditions, it can acquire a 25% stake in the assets.
Within 30 months of the date of agreement, GBML will issue shares, with a value totalling $200,000, to Tancred to acquire a 51% interest.
Within 42 months of the agreement date, it will issue shares valued at $300,000 to Tancred to acquire a 100% interest in the assets.
GBML also agreed to issue performance shares with a total value of $1m to Tancred if it announces five tonnes at a concentration of 1% lithium oxide (Li2O).
After a feasibility study is completed, shares with a total value of $2m will be issued.
Once GBML begins commercial production, shares valued at $2m will be issued.
GBML CEO Michael Murphy said: “GBML has had our eye on these additional licences for some time now, but up until recently the land was unavailable. Given the proximity to not only our own active exploration but also to Blackstairs Lithium’s expansive drill programme plans, GBML’s new southern tract of project licences is a significant district addition.
“We have been tracking exploration progress in and around PL 1597 throughout 2023, and have seen the focus area expand in lockstep with favourable geologic reporting. We thank the Tancred team for their partnership and we are looking forward to expanding our exploration efforts.”
The Leinster lithium project is located near Dublin in the counties of Wicklow and South Carlow. After conducting first-phase drilling at Knockeen, the company identified new lithium-cesium-tantalum pegmatite system with lithium-bearing spodumene pegmatites.
Each of the spodumene pegmatites range from 0.10m to up to 0.63m in width, with the highest values up to 2.57% Li2O.
Source: Mining Technology