Canadian mineral exploration company Genius Metals has announced its agreement to acquire a 100% stake in the Paka lithium property located in James Bay, Québec, Canada. The property consists of 189 contiguous claims covering over 97km² in the prospective Archean La Grande greenstone belt, just 15km south of the Trans-Taiga government road.
As per the terms of the deal, Genius Metals will obtain full ownership of the Paka property by making a cash payment of $60,000 to private vendor Jean-David Moore upon the transaction’s closing. Additionally, the company will issue six million common shares to Moore. Under the agreement, the vendor will also receive a 2% net smelter returns royalty on production from the property.
Once the acquisition is complete, Moore, who is already a shareholder of Genius Metals, will become the largest shareholder in the company, holding a total of 8.49 million shares, representing approximately 9.9% of the outstanding shares. The transaction is subject to regulatory and other necessary approvals.
Genius Metals President and CEO Guy Goulet expressed satisfaction with the acquisition, stating, “We are pleased to conclude the acquisition of this highly prospective lithium property and increase our commitment to lithium exploration in the prolific James Bay Territory.” Goulet also emphasized the strategic value of Moore’s involvement due to his extensive experience and successful track record in the industry.
According to data from the Ministère des Ressources Naturelles du Québec, numerous granitic outcrops, often pegmatitic, have been identified on the Paka property and its surrounding areas. Genius Metals intends to prioritize assessing these outcrops for their lithium content and undertake a comprehensive prospecting campaign across the property to identify and sample lithium-bearing pegmatites.
The completion of the transaction is contingent upon obtaining all necessary regulatory approvals, after which Genius Metals will further advance its exploration efforts in the promising lithium-rich region of James Bay.
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