Arbor Metals Corp. [ABR-TSXV] has added to its property portfolio in the James Bay region of Quebec by acquiring two properties that are contiguous to Patriot Battery Metals Inc.’s [PMET-CSE, PMETF-OTCQB, R9GA-FSE] Corvette-FCI gold-copper-silver-lithium project.
The move comes after Arbor recently announced that untested pegmatite outcrops have been identified in the north section of its Jarnet Lithium Project which is also contiguous to Patriot Battery’s Corvette-FCI project.
Abor shares advanced on the news, rising 6.8% or $0.05 to 78 cents. The shares currently trade in a 52-week range of $3.69 and 68 cents.
The Corvette Project’s CV5 spodumene pegmatite ranks as the largest lithium pegmatite resource in the Americas based on a contained lithium carbonate equivalent and one of the top 10 largest lithium pegmatite resources in the world.
In a press release, Arbor said it has acquired the Corvette Lake and St. Pierre properties through the acquisition of all the outstanding common shares of Corvette Lake Lithium Corp., an arms-length party. The Corvette Lake and St Pierre properties cover 821 hectares and 1,026 hectares respectively and are situated approximately 20 kilometres south of the all-season Trans-Taiga gravel road
“The acquisition of these properties completes the strategic position of Arbor in the Corvette deposit area,’’ the company said. The Jarnet, Corvette Lake and St. Pierre lithium projects cover an area of approximately 5,606 hectares and are contiguous to the Corvette-FCE property.
Under the terms of a share purchase deal dated February 23, 2024, Arbor acquired 1.42 million outstanding common shares of Corvette Lake Lithium in consideration for cash payments to the Corvette shareholders in the amount of 50 cents per share. Following completion of the transaction, there remains 50,000 outstanding performance-linked preferred shares of Corvette which are not held by the company. The performance-linked shares carry no voting rights. In the event that results of mineral exploration on the Corvette Lake and St. Pierre properties demonstrate the existence of lithium mineralization, the holder has the right to redeem the shares at a price of $100 per share.
Arbor recently said untested pegmatite outcrops have been identified in the north section of its Jarnet Lithium Project in Quebec.
In an update on its exploration progress, Arbor said the company’s independent geologist has completed the assessment of samples obtained from the recent exploration program at Jarnet. The exploration program was focused on mapping, prospecting activities, and drilling potential targets.
Meanwhile, Arbor President Mark Ferguson has said he remains confident in the outlook for lithium, a key ingredient used in the production of lithium-ion batteries.
“While the spot price for lithium has experienced a recent decline, Abor’s management team maintains confidence in the long-term potential for lithium,’’ he said. “We view the current decline as a short-term issue and anticipate a rebound in lithium prices in 2024.’’
