Solstice Gold has agreed to acquire a property to explore lithium pegmatite exploration within the Quetico lithium district in the Long Lake area in Ontario.
The company entered an option deal with 1544230 Ontario and Gravel Ridge Resources to purchase the land package.
Known as the Kamuck Property, the acquired package is spread across 31km² of land. It is located 200km from Thunder Bay and 40km from Geraldton, and includes seven multi-cell claims on the eastern flank of the district.
Recent spodumene discoveries by exploration groups define an expanded area with high lithium potential within the Quetico subprovince. The lithium district is centred around the Rock Tech-owned Georgia Lake Lithium deposit.
The newly acquired Kamuck property is located near these discoveries and is said to exhibit abundant pegmatite with fertility indicator minerals.
Recent prospecting at the Kamuck property indicates more than 80% pegmatite on a traverse on a 50-hectare feature identified by aerial imagery. The pegmatites occur within a high potential 50ha area identified on satellite images.
However, there is no record of any exploration or detailed governmental mapping of the area.
The company needs to pay C$10,000 ($7,276) in cash within ten days of the option agreement and issue 200,000 shares to the sellers, after receiving TSX Venture Exchange approval.
It also needs to pay C$14,000 on the first anniversary of the option agreement, followed by C$20,000 in cash on the second anniversary and C$28,000 on the third anniversary.
After the option has been exercised, the sellers will retain a 1.5% net smelter return (NSR) on the project. Solstice can buy back 0.5% of the NSR by paying C$500,000.