Highlights:
- Agreement signed to acquire three prospective lithium projects
in the James Bay region.
- The Mercator Project, located east from Comet's Liberty and
Winsome Resources' Adina Projects and adjacent to the Tilly
Project.
- The Monarch Project, on strike with Cygnus Metals'
Auclair pegmatites discoveries
Auriga, Lyra & Pegasus.
- The Elmer East Project, located 20 km north-east
of Arcadium's James Bay
deposit and next to Azimut Exploration's Wapatik project
- The Mercator Project shares several geological similarities to
Tilly with little historical exploration completed to date.
- The Monarch Project hosts multiple Li, Ta, Ca, Be soil
anomalies to be investigated directly on trend with Auclair's recent pegmatites discoveries.
- The acquisition increases Comet's landholding in the world
class James Bay lithium region to
over 346 km².
Upcoming News & Events:
- Results from the June 2024
Liberty field program.
- Commencement of the August 2024
Troilus field program.
- Follow-on and new exploration programs on Liberty, Troilus and
new projects.
ROUYN-NORANDA, QC, July 15,
2024 /CNW/ - Comet Lithium Corporation (TSXV: CLIC)
(FSE: 8QY) ("Comet Lithium" or the "Corporation") is
pleased to announce that it has entered into a Purchase and Sale
Agreement on July 12, 2024 with
Troilus Gold Corp. ("Troilus Gold") (the "Agreement")
pursuant to which the Corporation will acquire from Troilus Gold
three prospective lithium projects located in the James Bay region, namely, the Mercator,
Monarch and Elmer East projects (the
"Transaction").
Vincent Metcalfe, President and
CEO commented, "The acquisition drives further consolidation in the
James Bay area, enhancing our
strategic land positions and providing significant optionality for
Comet shareholders. By securing these prospective assets, we are
making investments at opportune prices. The well-located and highly
prospective projects we are acquiring will be instrumental in our
future growth and further enhance our position within the highly
active and strategic Trieste Lithium Greenstone Belt".
Mercator Project Summary
The Mercator Project is located 40 kilometres southeast of
Comet's Liberty property and Winsome Resources' Adina project (ASX:
WR1). It is comprised of 29 mining claims covering approximately
14.91 km². These mining claims are adjacent to Winsome Resources'
Tilly Project and Loyal Lithium's Trieste Project (ASX: LLI).
The Mercator Project is predominantly covered by sediments with
large, mapped, identified pegmatite dykes, in a favorable
geological environment for LCT pegmatites. The Mercator Project
area is primarily underlain by the Archean Salomon River Formation,
which is interpreted to unconformably overlay the greenstones of
the adjacent Trieste Formation. The lithologies are primarily
metasedimentary, including biotite, amphibole, garnet, and
sillimanite paragneisses, as well as metatexites and local iron
formations.
Monarch Project Summary
The road-accessible Monarch Project is comprised of 39 mining
claims covering approximately 20.61 km². These mining claims are
surrounded by Cygnus Metals' Auclair Project (ASX: CY5) and on
trend with the recent pegmatite discoveries, located 60 kilometres
north-east of the Whabouchi lithium mine owned and operated by
Arcadium Lithium (NYSE: ALTM and ASX: LTM) ("Arcadium"). The
Monarch Project is less than one kilometre west to Cygnus Metals'
Auriga Discovery, with high grades of up to 6.5% Li2O
and intersections of up to 13.9 metres @ 1.3% Li2O from
42.8 metres. Recent results at Auriga covers a strike length of
1.9 kilometres, with multiple parallel pegmatites intersected
and mineralisation remaining open in all directions under shallow
glacial cover. The Monarch Project is also on trend with the
Pegasus pegmatite discovery on Cygnus Metals' Auclair Project of
43.7m @ 1.15% Li2O below
10 metres of glacial overburden was intersected. A third discovery,
the Lyra discovery also on Cygnus Metals' Auclair Project, trend
with the Monarch Project, Lyra has planned drilling, and exhibits
both scale (up to 15 metres wide) and grade (up to 6.7%
Li2O) (please refer to Cygnus Metals Limited press
releases (ASX announcements) dated November
28, 2023, January 10, 2024 and
May 17, 2024). All three spodumene
discoveries to date fall within a highly prospective 10 kilometres
LCT fractionation corridor, identified through the discovery and
sampling of pegmatites, with assays returning favourably low K/Rb
ratios.
The Monarch Project is well-located in the hinge-zone of a
refolded fold, it is also highly prospective geology for orogenic
gold and VMS potential. Previous work by Troilus Gold returned
strong soil anomalies in Li, Ta, Cs, and Be, which are all on trend
with Auclair's pegmatites
discovery. Previous historical work completed by Virginia Mines with a focus on gold
mineralization discovery, included a geophysical magnetic survey in
1996, several drill holes campaigns in 1996, 1997 & 2010 and a
gold grain survey in 2005. The work followed the discovery of the
Golden Butterly showing located in the center of the Monarch
Project.
Elmer East Project Summary
The Elmer East Project is comprised of 32 mining claims covering
approximately 16.7 km². Elmer East Project is located 20 km south
west of Arcadium's Galaxy project. Arcadium's Galaxy project
is the former James Bay Lithium Project of Allkem Limited, who
merged with Livent Corporation in January
2024 to form Arcadium. The Elmer East Project is located
directly north of Azimut Exploration's Wapatik Project (TSX:AZM)
where eight multi-kilometre target areas have thus been defined,
including at least 30 distinct outcropping targets likely
corresponding to pegmatites. Several of these outcrops are
anomalous in lithium, cesium and tantalum ("LCT"), as well as other
associated pathfinder elements for LCT pegmatites (rubidium,
gallium, tin). The Wapatik Project also displays potential for
intrusion-related nickel-copper mineralization and shear-related
gold mineralization, based on the results of exploration programs
conducted by Azimut and Mont Royal since 2021 (please refer to
Azimut Exploration's press releases dated December 7, 2021, June
29, October 3, 2022,
October 27, 2022, April 24, and September
19, 2023).
Terms of Acquisition
Pursuant to the Agreement, upon closing of the Transaction Comet
Lithium will be required to:
- Issue 1,500,000 common shares to Troilus Gold.
- Grant a 24-month participation right to Troilus Gold allowing
Troilus to participate in any equity financing in order to maintain
its equity percentage in the Corporation, subject to certain
conditions including Troilus Gold holding at least 750,000 common
shares of Comet Lithium at the time of the equity financing.
- Grant a 2% Net Smelter Royalty ("NSR") with right to buyback 1%
for $3 million on each of the
Mercator Project, the Monarch Project and the Elmer East
Project.
The Transaction remains subject to regulatory approval,
including that of the TSX Venture Exchange.
The closing of the Transaction is expected to occur in the third
quarter of 2024.
Documents
New Acquisition Images – July
2024
Kyle Frank Appointed to the Board
The Corporation is also pleased to announce the appointment of
Kyle Frank to its Board of
Directors. Mr. Frank is currently Troilus Gold's Vice-President,
Exploration. Mr. Frank is a Professional Geoscientist registered in
the Provinces of Quebec and
British Columbia, with over a
decade of experience, working primarily in advanced stage
exploration focusing on resource expansion, as well as in open pit
mining production and technical roles. Mr. Frank previously held
senior positions at Copper Mountain Mining Corporation and Thompson
Creek Metals Corporation. Kyle has a B.Sc. in Geoscience from
Western University in London, Ontario.
The appointment of Mr. Frank remains subject to the approval of
the TSX Venture Exchange.
Qualified Person
Vincent Cardin-Tremblay, P. Geo
(ogq #1386, PGO #3347), registered in the Provinces of Québec, and
Ontario is Vice President
Exploration to Comet Lithium, is a qualified person under
National Instrument 43‑101 – Standards of Disclosure for
Mineral Projects. He has reviewed the technical contents of
this news release and has approved the disclosure of the technical
information contained herein.
About Comet Lithium Corporation
Comet Lithium is a dynamic lithium-focused exploration company
active in the prolific James Bay
District of Quebec. Comet
Lithium's flagship asset is its 100%-owned Liberty Property
contiguous to Winsome Resources' Adina lithium deposit, a growing
high-grade lithium discovery. Comet Lithium is advancing its
Liberty Property to first-ever drilling.
Cautionary Note regarding the JORC Data
The JORC Code has been accepted for current disclosure rules in
Canada under NI 43-101. There are
no technical report supporting the presented results as this is not
required under JORC Code. Readers must be aware that the technical
information relating to Cygnus Metals has been obtained from
several press releases of Cygnus Metals (the "Cygnus Press
Releases") and such information has not been verified by the
Corporation's Qualified Person but is believed to be reasonably
reliable. While Comet Lithium has determined that the results are
relevant to the Monarch Project given that the Monarch Project and
the Cygnus's Auclair project are
adjacent to each other and Monarch Project is on strike with
Cygnus' mineralized pegmatites in addition that Cygnus has
identified pegmatite targets located less than 500 m away from the Auclair-Monarch claim border. Readers are
cautioned to not place undue reliance on the results as it is not
indicative of the mineralization of the Monarch Project and the
Cygnus result do not mean or imply that mineralization exist on the
Monarch Project.
Forward-Looking Statements
This news release contains statements that may constitute
"forward-looking information" within the meaning of applicable
Canadian securities legislation. Forward-looking information may
include, among others, statements regarding the future plans,
costs, objectives or performance of Comet Lithium, or the
assumptions underlying any of the foregoing. In this news release,
words such as "may", "would", "could", "will", "likely", "believe",
"expect", "anticipate", "intend", "plan", "estimate" and similar
words and the negative form thereof are used to identify
forward-looking statements. Forward-looking statements should not
be read as guarantees of future performance or results, and will
not necessarily be accurate indications of whether, or the times at
or by which, such future performance will be achieved. No assurance
can be given that any events anticipated by the forward-looking
information will transpire or occur, including the approval of the
Transaction by the TSX Venture Exchange required in order to
complete the Transaction and the anticipated closing date of the
Transaction, the timing to release and the results from the
June 2024 Liberty field program, the
timing for the commencement of the August
2024 Troilus field program as well as the follow-on and new
exploration programs on the Comet Lithium's Liberty
and Troilus properties and new projects. Forward-looking
information is based on information available at the time and/or
management's good-faith belief with respect to future events and
are subject to known or unknown risks, uncertainties, assumptions
and other unpredictable factors, many of which are beyond Comet
Lithium's control. These risks, uncertainties and assumptions
include, but are not limited to the risks, uncertainties and
assumptions described under "Financial Instruments" and "Risk and
Uncertainties" in Comet Lithium's Annual Report for the fiscal year
ended December 31, 2023, a copy of
which is available on SEDAR+ at www.sedarplus.ca, and could cause
actual events or results to differ materially from those projected
in any forward-looking statements. Comet Lithium does not intend,
nor does it undertake any obligation, to update or revise any
forward-looking information contained in this news release to
reflect subsequent information, events or circumstances or
otherwise, except if required by applicable laws.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of the release.
SOURCE Comet Lithium Corporation