Corcel exercises option to acquire Canegrass Lithium Project
Exploration and development country Corcel has exercised its option to acquire the Canegrass Lithium project in Western Australia, it announced on Tuesday.
The AIM-traded firm said the project covers an area of 2,500 square kilometres, and is located within the Windimurra Igneous Complex.
It said the complex consists of basic cumulate rocks that could broadly be classified as gabbroic in composition.
The project is predominately underlain by the lower zone of the Windimurra Intrusive Complex - a series of olivine-rich gabbro and gabbronorite which grade upwards into more leucocratic gabbroic rocks.
Corcel said it would issue 50 million new ordinary shares to Huntsman Exploration at the previously-agreed issue price of 0.4p, equating to £0.2m in total consideration.
The shares would be issued after the company's upcoming general meeting, scheduled for 26 April.
Historic exploration completed by Aldoro on Canegrass consisted of satellite imagery interpretation, geochemical sampling, rock chip sampling, and an initial phase of drilling.
A satellite imagery-based interpretation was conducted by Huntsman across the entirety of the project, and revealed extensive swarms of what was being interpreted as pegmatites.
Those interpreted pegmatites are located within the same lithologies and setting as that at Aldoro's project.
Additionally, Corcel said rock chip sampling conducted by Aldoro had confirmed the presence of high-grade rubidium with associated lithium mineralization 1,400 metres to the east of the Canegrass Lithium Project.
“Building upon our recent acquisition and farm-out of the Mt Weld rare earth elements project, which is now approaching drilling, Corcel is pleased to have now acquired a high-upside, low-cost lithium project, adjacent to Aldoro Resources' Wyenmandoo lithium-rubidium-tantalum project in Western Australia,” said chief executive officer Scott Kaintz.
At 1056 BST, shares in Corcel were up 4.61% at 0.4p.
Reporting by Josh White for Sharecast.com.