The junior lithium explorer Targa Exploration Corp. (CSE: TEX) (FRA: V6Y) (OTCQB: TRGEF) has inked an agreement to acquire 5 expansive lithium properties in Ontario and Quebec, thereby expanding the company’s land package by almost 50 per cent.
On Wednesday, Targa announced the acquisition of a project portfolio with a collective span of 137,000 hectares. The company now has a 412,000-hectare Canadian land package.
“This exciting acquisition will be adding a considerable package of prospective ground assembled by John and Leo to our already strong portfolio and is in line with our strategy of going after large land packages in favourable districts with key indicators of lithium pegmatite geology,” said Cameron Tymstra, President and CEO of the company.
In addition to the property acquisition, Targa also announced that it is establishing a new Advisory Board comprised of leaders in the industry. They include John Robins, geologist, prospector and Co-Founder of Vancouver’s Discovery Group; Leo Hathaway, Executive Chairman of Golden Shield Resources (CSE: GSRI) and Senior Vice President of Lumina Gold Corp (TSX-V: LUM) and other influential figures.
“The exploration and development of lithium resources in Canada is the new ‘Gold Rush’,” said Robins.
In Quebec, Targa will be acquiring the Pegmatite Beach, Harricana and Case Lake projects and in Ontario, the company will be receiving the Detour West and Lakeshore projects.
Pegmatite Beach is the largest by far, spanning 97,571 hectares. It covers a 60-kilometre trend of lake sediment lithium anomalies and has significant pegmatite-bearing geology, much of which is yet to be assessed for its lithium extraction potential.
Targa will be providing the vendor with 7.5 million common shares, $755,700 in cash and a 1 per cent net smelter royalty for the properties.
Prior to the announcement last month, Targa had a cash balance of $850,000. The company will be providing the vendor with the cash amount in three payments before the end of the year.
Targa is actively engaged in a partnership with Kenorland Minerals Ltd (TSX-V: KLD), a major shareholder in the company.
Targa also operates the Shanghai gold and silver project in Yukon, 38 kilometres north of the Village of Mayo.
The company’s shares rose by 7.3 per cent Thursday and are trading for $0.30 on the Canadian Securities Exchange.
Why is Targa focused on Canadian Lithium?
Lithium is essential in the global transition to a low-carbon economy.
Learn more about the critical mineral in our company presentation: https://t.co/5TEKdYXzsd$TEX.C #Lithium #CleanEnergy pic.twitter.com/EwmjbzSAO8
— Targa Exploration Corp. (CSE: TEX | OTCQB: TRGEF) (@TargaEx) September 26, 2023
Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) is another Vancouver-based lithium explorer that has significantly increased its resources in recent days as well.
The company announced last month that it had expanded its lithium brine resource in Argentina by 175 per cent and is transitioning from exploration to development as a result.
The company will be capitalizing on the 1.58 million tonne lithium resource at its Hombre Muerto North project, located adjacent to major lithium operations run by POSCO (KRX: 005490), Allkem Ltd (TSX: AKE) and Livent Corporation (NYSE: LTHM).
Lithium South shares stayed flat at $0.38 Thursday on the TSX Venture Exchange.
Lithium South Development Corporation is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
