Ragnar Metals has entered into a conditional binding agreement to acquire 4 exploration licences in Sweden from Pallas Metals, a subsidiary of Canadian exploration company Pallas Minerals.
Under the agreement, Ragnar’s wholly owned subsidiary, Ragnar Exploration, will acquire the Orrvik Lithium Project in Sweden.
The Orrvik project covers 36km-square and is ‘highly prospective’ for spodumene-bearing lithium-caesium-tantalum (LCT)-pegmatite-type lithium deposits.
The agreement stipulates that Ragnar is required to pay $50,000 in cash within 10 business days of the execution of the agreement as a deposit.
And an additional $450,000 in cash at completion of the acquisition.
Ragnar has also agreed to grant Pallas a net smelter return royalty of 1.5% on all mineral or metallic products extracted and recovered from the area covered by the Orrvik licences.
Commenting on the acquisition, Ragnar Metals Executive Director Eddie King says upon completion, this acquisition will solidify the company’s focus on European critical minerals.
“Interestingly, the 2 spodumene occurrences at surface are 5km apart, highlighting the fantastic potential for the area to host further spodumene (lithium) bearing pegmatite mineralisation.”
Ragnar geologists recently conducted an on-site visit as part of the due diligence process for the project and located the Orrvik spodumene occurrence, where visual spodumene was positively identified in the outcrop.
The company says the current exposure at the surface is approximately 10m by 10m. The Stenback lithium prospect is the other significant exploration site within the project. Novo Litio (now delisted) conducted the primary exploration work in 2017. These initial efforts involved mapping and rock sampling across a northeast-trending pegmatite swarm that stretches approximately 400m in length.
Novo Litio’s rock sampling efforts reportedly returned promising results, with high lithium assays discovered in 2 distinct locations within the central pegmatite — up to 1.9% Li2O in the southern section and up to 2.8% Li2O in the northern section. Additionally, the northern pegmatite displayed elevated tantalum (Ta) levels, reaching up to 7,820ppm Ta, and caesium levels of up to 509ppm. Lower lithium levels, up to 900ppm, were also observed in this northern pegmatite.
Ragnar notes the project represents an ‘exciting’ opportunity to add to the existing lithium tenure in a ‘highly prospective’ district interpreted to represent the western extent of the renowned Kaustinen lithium province in Finland, comprising the ‘largest’ lithium deposits in Scandinavia.
The company is planning to conduct orientation surface sampling programs to define the best method for detecting lithium anomalism undercover, alongside additional rock sampling to build on the current pegmatite assay database.
Detailed magnetic drone surveys will be undertaken to define and delineate ‘important’ structures and intruding pegmatite swarms, as well as an airborne multispectral survey to detect further targets.
Source: Mining Au