Comet Expands Portfolio with Acquisition of Three Prospective Lithium Projects in the James Bay Region and Appoints a New Director to its Board
Comet Expands Portfolio with Acquisition of
Three Prospective Lithium Projects in the
James Bay Region and Appoints a New
Director to its Board
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% Li
2
O and intersections of up to 13.9 metres @ 1.3% Li
2
O 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% Li
2
O 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% Li
2
O) (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.
Figure 1: Mercator Property - Adjacent to Winsome Resources’ Tilly Project and Loyal Lithium’s
Trieste Project (CNW Group/Comet Lithium Corporation)
Figure 2: Monarch Project - Adjacent to recent discoveries and spodumene-bearing pegmatites
(CNW Group/Comet Lithium Corporation)
Figure 3: Elmer East Property (CNW Group/Comet Lithium Corporation)
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
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For further information:
For further information: Comet Lithium Corporation, Vincent Metcalfe,
Chairman and CEO, [email protected], +1.514.249.9960; 147 Québec Avenue (back
door), Rouyn-Noranda, Québec J9X 6M8, Email: [email protected], Website:
CometLithium.com
CO: Comet Lithium Corporation
CNW 07:30e 15-JUL-24