- Imagine Lithium Inc. (ILI) has agreed to sell its holdings in the Red Lake area
- Imagine Lithium’s holdings will be acquired by Trillium Gold Mines Inc. and Pegasus Resources Inc
- Trillium will acquire 13,958 hectares for a consideration of 2,800,000 common shares of Trillium and $175,000 in cash
- Pegasus has agreed to issue to Imagine 5,000,000 common shares of Pegasus in exchange for delivery of certain payment obligations
- Imagine Lithium Inc. (ILI) is up 5.26 per cent, trading at C$0.10 per share at 9:53 am ET
Imagine Lithium (ILI) has agreed to sell its holdings in the Red Lake area to Trillium Gold Mines (TTGM) and Pegasus Resources.
Trillium and Imagine have signed an amended agreement whereby Trillium will acquire a majority of Imagine’s property holdings known as the Eastern Vision Project, located in the Confederation Lake assemblage of the Birch-Uchi greenstone belt in the Red Lake District, Ontario.
Under the terms of the agreement, Trillium will acquire 13,958 hectares between the Fredart, Confederation North, and Confederation South properties for a consideration of 2,800,000 common shares of Trillium and $175,000 in cash.
In addition, Imagine has entered into an amending, settlement and termination agreement with Pegasus relating to the Garnet Lake property and portions of the Fredart property.
Under the Pegasus agreement, Pegasus has agreed to issue to Imagine 5,000,000 common shares of Pegasus in exchange for delivery of certain payment obligations under the option agreements and Imagine relinquishing its right to complete the option for the claims under the option agreements.
The definitive agreement and the Pegasus agreement remain subject to TSX Venture Exchange approval.
“The transactions to divest of the Red Lake properties gives Imagine, through its share ownership in Trillium and Pegasus, exposure to a larger consolidated land package extending greater than 100 km in length in the Red Lake area,” said J.C. St-Amour, President of Imagine.
“This also allows us to focus our exploration efforts on our 100 per cent owned Jackpot Lithium project where a drill program is actively underway,” he added.
The Jackpot Lithium property, located in the Georgia Lake Area about 140 km NNE of Thunder Bay, Ontario, is approximately 12 km by air from the TransCanada Highway (Hwy 11) and the main railroad which connects to the port town of Nipigon, on Lake Superior.
The property contains known lithium-bearing granitic pegmatite dikes, of which two provided estimated historical resources of 2 million tons at 1.09 per cent Li2O and 750,000 tons at 1.38 per cent Li2O.
The company recently acquired additional claims with additional lithium showings located on strike to the main historical resources.
Imagine Lithium Inc. (ILI) is up 5.26 per cent, trading at C$0.10 per share at 9:53 am ET.
