Corcel PLC Option to Acquire Australian Lithium Project (6319Q)
22 February 2023 - 6:00PM
UK Regulatory
TIDMCRCL
RNS Number : 6319Q
Corcel PLC
22 February 2023
Corcel PLC
("Corcel" or the "Company")
Option to Acquire Australian Lithium Project
22 February 2023
Corcel Plc (London AIM: CRCL), the extractive industries
exploration and development company, with interests in battery
metals including nickel, cobalt, and rare earth elements, announces
that it has signed an exclusive 30-day option with Huntsman
Exploration Inc. ("HMAN") to acquire 100% of the lithium rights of
the Canegrass Lithium Project, consisting of several granted
mineral tenements, adjacent to Aldoro Resources Ltd's ("Aldoro"),
Wyemandoo Pegmatite project in Western Australia.
Corcel Chief Executive Officer, Scott Kaintz commented: "We are
delighted to rapidly follow our recent acquisition and subsequent
farm out of Mt Weld, with an option to acquire a second high
quality Australian battery metals asset. The Canegrass Lithium
project, which sits next to (and could be an extension of) Aldoro's
existing pegmatite project, has generated rock chip sample grades
of up to 2% Li20 and rubidium grades of up to 1.8% and is ripe for
near term high impact drill activity. Meanwhile, the market for
lithium market remains buoyant with prices well above multi-decade
historical norms."
About the Canegrass Lithium Project
The project covers an area extending over part of the Windimurra
Igneous Complex, a large differentiated layered ultramafic to mafic
intrusion emplaced within the Yilgarn craton of Western Australia.
It is conical to a sheet-like body intruded into the Archaean
granite-greenstone terrain of the Murchison Province, outcrops over
an area of approximately 2,500 km(2) and has an age of
approximately 2800 Ma. The complex is dominantly comprised of basic
cumulate rocks that can broadly be classified as gabbroic in
composition. Magmatic layering dips inwards at the margins and
flattens in the centre. It is dissected by large scale strike-slip
shear zones so that the original extent of the complex is unknown.
The Windimurra Igneous Complex is part of a much larger suite of
similarly layered ultramafic to mafic bodies emplaced between
2,700-2,800Ma across the Murchison Province. Collectively, these
complexes are similar in thickness, volume, and composition to the
Bushveld Igneous Complex of South Africa.
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. The Lower zone is separated into a western and eastern lobe
by the Shephards Discordant Zone ("SDZ"), which represents a
significant break in the igneous stratigraphy and is characterised
by magnetite and magnetite-bearing gabbro. To the east of the SDZ
lies a package of mafic volcanic rocks, felsic volcaniclastic
sandstones, and banded iron-formation bounded by the Wyemandoo
Shear Zone and are part of the Norie Group.
Historic exploration completed by Aldoro has consisted of
satellite imagery interpretation, geochemical sampling, rock chip
sampling and an initial phase of drilling. Due to the high degree
of outcrop exposure and lack of vegetation, satellite imagery
interpretation provides a rapid low-cost evaluation method to
initially review and target pegmatite swarms. A satellite
imagery-based interpretation was conducted by HMAN across the
entirety of the Canegrass Lithium Project and revealed extensive
swarms of what is being interpreted as pegmatites. These
interpreted pegmatites are located within the same lithologies and
setting as that at Aldoro's Project. Furthermore, rock chip
sampling conducted by Aldoro has confirmed the presence of
high-grade rubidium with associated lithium mineralisation 1,400 m
to the east of the Canegrass Lithium Project.
Transaction Details:
Corcel has signed an exclusive 30-day option to acquire the
lithium rights at the Canegrass Lithium Project, which are overlaid
on tenements associated with the Canegrass Nickel Project (rights
to which are not included in this transaction), and has agreed to
pay the vendor during this period a non-refundable option payment
of GBP20,000. Corcel has commenced due diligence on the project and
intends to complete this during the 30-day option period.
In the event that Corcel chooses to exercise the option to
proceed to acquire the lithium rights at the project, the Company
will issue HMAN 50,000,000 new ordinary shares ("Acquisition
Shares") at a deemed issue price of 0.4p equating to GBP200,000 in
aggregate. This represents a 34% premium on the closing price on 21
February 2023 and is also the entry price of the new cornerstone
investor as announced on 21 December 2022.
Qualified Persons Statement:
The information in this announcement that relates to the
Exploration Results for the Canegrass Lithium Project is based on
information compiled and fairly represented by Mr Robert Jewson,
who is a Member of the Australian Institute of Geoscientists. Mr
Jewson has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration, and to the
activity which he has undertaken, to qualify as a Competent Person
as defined in the 2012 Edition of the Joint Ore Reserves Committee
(JORC) Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves. Mr Jewson consents to the
inclusion in this report of the matters based on this information
in the form and context in which it appears.
For further information, please contact:
Scott Kaintz Corcel Plc CEO
020 7747 9960
James Joyce / James Bavister /Andrew de Andrade WH Ireland Ltd NOMAD & Broker
0207 220 1666
Patrick d'Ancona Vigo Communications IR
0207 3900 230
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