Hertz Energy Inc. [CSE: HZ; OTCQB: HZLIF; FSE: QE2] reported the acquisition of the Agastya Lithium Property comprised of 209 mineral claims covering approximately 10,650 hectares located in the James Bay region of northern Québec through an arms-length option agreement dated December 9, 2024 between prospector Prospectus Capital Inc. and Canuck Lithium Corp., a wholly-owned subsidiary of Hertz.
The Agastya Property consists of three non-contiguous claim blocks along the greenstone belt that hosts the Adina, Trieste, and Galinée properties. These adjacent properties are known for their significant LCT (Lithium-Cesium-Tantalum) pegmatite potential hosted within greenstone/ metasediment packages:
Winsome Resources – Adina Lithium Project: One of the Top 3 largest lithium resources in North America with an Indicated Mineral Resource of 60.5 Mt at 1.14% LiO and Inferred Resource of 15.9 Mt at 1.17% LiO using a 0.5% LiO cut-off (source: NI 43-101 Technical Report on PEA and MRE for Adina Lithium Project authored by Synectiq Inc. with a report date of September 30, 2024 and filed under Winsome’s SEDAR+ profile). Winsome also has an exclusive option to acquire the nearby Renard Operation, a fully permitted, former diamond mine located 60 km south of Adina with a convertible processing facility for future lithium production.
Loyal Lithium – Trieste Lithium Project: Discovery of six spodumene-bearing pegmatites including a significant drilling result of 31.8 m at 2.2% LiO.
50% Azimut Exploration/50% SOQUEM JV – Galinée Lithium Property: Drilling results include 1.62% LiO over 158.0 metres, including 3.33% LiO over 29.6 metres, and Galinée features a 20-km long lithium-cesium anomaly.
Rio Tinto/Midland Galinée Project: Spodumene-bearing pegmatite dykes discovered over several hundred metres along a 7 km favourable contact zone. Significant drilling results include 1.38% LiO over 37.86 metres, including 1.88% LiO over 21.35 metres.
The Agastya property covers the western extent of the greenstone belt that trends through Trieste, Adina, and Galinée. Greenstone belts are known to host LCT pegmatite mineralization and are commonly targeted by exploration companies as they are favourable hosts for lithium and other valuable metals including gold.
Lake bottom geochemistry data highlights the greenstone belt/LCT trend throughout the region, showing strong anomalies along the greenstone and known LCT pegmatite deposits. The Agastya Property claims fall within this strongly anomalous lake bottom sediment trend, indicating a potential for LCT pegmatite mineralization within the property.
Due to the significant exploration activity, there is strong support for infrastructure development in the region. This includes the extension of the road from the Winsome-optioned Renard Operation, which is expected to run through the Agastya Property once constructed.
Hertz Energy currently holds about $750,000 in critical minerals Flow-Thru capital and intends to explore the Agastya Lithium Property.
As consideration for the acquisition of a 60% of the Vendor’s legal, beneficial and registered interest in the Agastya property, the sole shareholder of the buyer, Hertz Energy, shall, within 10 business days of the effective date of the agreement, issue 8,000,000 common shares in the capital of Hertz as directed by the vendor and the Buyer shall grant the Vendor a 2% Gross Metal Royalty (GMR). The 2% GMR shall be payable to the vendor on all metals including but not limited to precious and base metals, produced from the Agastya property.
The company has elected not to proceed further with its Snake Lithium Project in the James Bay Region in Québec based on the lack of significant results from its prospecting and sampling programs in June 2024. No lithium and/or gold associated minerals were documented throughout the field traverses and no anomalies were observed.
The company remains fully focused on exploring and developing its Agastya Lithium, AC/DC Lithium, and Harriman antimony properties in Québec, Lake George antimony property in New Brunswick, and Namibia Uranium Project and will provide further updates as exploration programs are completed.
The company entered into a loan agreement with Kulwant Malhi. Under the terms and conditions of the loan agreement, the lender has provided the company with a non-revolving term loan of CAD$60,000, bearing interest at a rate of 8% per annum. The loan has a term of one year maturing on December 5, 2025.
Hertz Energy’s lithium exploration projects include the AC/DC lithium project, and Snake lithium project in Jame Bay Québec and newly acquired Agastya lithium property. Hertz Energy also holds the Harriman antimony project, Québec, and the Lake George antimony project in New Brunswick, Canada. Hertz Energy also has permit application pending in Namibia for uranium exploration projects.
