Cullinan Metals Corp. [CMT-CSE; CMTNF-OTC; 7KO-FSE] signed an option agreement to acquire a 100% interest in the highly prospective Wakeman Lake lithium property located in Northwestern Ontario. The property comprises eight mineral claims covering approximately 7,900 acres.
Situated approximately 100 km east of Red Lake, in the Red Lake Mining division of Northwestern Ontario, the property is underlain by the Allison Lake batholith, the largest known fertile, peraluminous granite mass in Northwestern Ontario. Notably, a sample taken at Wakeman Lake has shown the presence of spessartine, a garnet type that serves as an indicator for LCT (lithium-cesium-tantalum) pegmatites. The sample, taken by F.W. Breaks, J.B. Selway and A.G. Tindal, is referenced in open file report 6099 by the Ontario Geological Survey. Access to the property is facilitated by multiple forestry roads across the region.
Under the terms of the agreement, Cullinan has the right to acquire a 100% interest in the property through aggregate cash payments of $110,000 and the issuance of 210,000 shares of Cullinan over two years. Additionally, the company will grant the optionors a 1.5% net smelter return (NSR) royalty. Cullinan retains the right to purchase 0.5% of the NSR royalty for $500,000.
The agreement is an arm’s-length transaction and is subject to customary closing conditions, including the receipt of all necessary approvals, notably the approval of the Canadian Securities Exchange. All securities issued in connection with the agreement will be subject to the applicable statutory hold period of four months and one day from the date of issuance.
