Rock Tech Lithium (CVE:RCK) announced Wednesday that it has entered into an option agreement to acquire a 100 per cent interest in a graphite property in southwestern Quebec, from UniMera Holding Public Ltd, as it seeks to diversify its asset base in advanced technology materials.
Rock Tech said the option property is prospective for large flake,
crystalline graphite and has a historic record of exploration for
graphite mineralization and production.
Shares of the company rallied 5.00 per cent just before 12 pm EDT, trading at 10.5 cents.
"The acquisition of the highly prospective graphite property aligns
with the company’s objective of diversifying its asset base in the
advanced technology materials category," said Rock Tech president and
CEO, Eunho Lee.
"With the emergence of large flake graphite use in lithium-ion
batteries and fuel cells, along with its many other technology-driven
applications such as the use of carbon fibre in the auto and aviation
sectors, adding a complementary asset to our portfolio of lithium
projects positions Rock Tech with the potential of providing an
integrated mix of materials for the high tech and alternative energy
The Quebec property consists of 32 mineral claims, covering 19.23
square kilometres in the Buckingham region of Lochaber Township, 45
kilometres to the northeast of Gatineau.
Over an area of two by eight kilometres long, there are three
graphite occurrences, referred to as the McLaren, Kelly and Burke, and
two past producing mines called the Mayo and the Plumbago.
The company noted that the agreement is subject to a three per cent
net smelter royalty (NSR) and includes an initial payment of C$20,000,
which has already been paid.
Rock Tech said it will also pay UniMera C$60,000 in cash, and 1.8
million common shares of the company within three business days from the
date of TSX Venture Exchange approval.
Additionally, it will pay C$60,000 in cash and 1.1 million common
shares of Rock Tech within one year from the exchange acceptance, and
another C$60,000 cash payment and 1.1 million common shares within a
year and a half.
Rock Tech must also spend a total of C$300,000 in exploration work on the property within a year of TSX-V approval.
Before the start of commercial production, two per cent of the NSR can be bought back for C$2.0 million, said the company.
Rock Tech is a Canadian based resource company focused on the acquisition and development of lithium properties.
The company’s portfolio includes an advanced stage lithium-bearing
pegmatite project with an NI 43-101 resource estimate in the Thunder Bay
mining district of Ontario, and two early stage lithium-bearing
pegmatite projects in northern and western Quebec.
In February, Rock Tech unveiled the remaining drill results from the
second phase of its exploration program at its Georgia Lake lithium
project in Ontario.
The aim of the second phase of the program was to add new resources
to the NI 43-101 compliant estimate announced in October last year, of
2.36 million indicated tonnes of 1.17% lithium oxide (Li2O) and 4.36
million inferred tonnes of 1.08% Li2O.
Highlights of the drill results included 1.20% Li2O over 8.84 metres,
1.11% Li2O over 3.10 metres, and 0.82% Li2O over 1.0 metres in drill
The company said that the second phase drilling also found anomalous
values of rare metals, including rubidium, beryllium, cesium, niobium
The program consisted of 4,608 metres of diamond drilling over
eighteen drill holes in addition to sixteen channel samples, testing
pegmatite dykes located on the Nama Creek, Conway and Newkirk claim
Rock Tech has already reported very high purity levels from the
property earlier this year. In late September last year, the company
achieved a purity level of 99.988% lithium carbonate (Li2CO3) from a
bulk sample. Battery manufacturers require a purity level of at least
Besides the battery industry, lithium has many uses, including
heat-resistant glass and ceramics, casting for HVAC products, additives
for greases and oil products, aluminum production, and as a
pharmaceutical mood stabilizer.