• Critical Resources (CRR) is set to buy the Gullwing-Tot Lakes property from Power Metals Corp and increase its foothold in the Mavis Lake project area in Ontario by 324 per cent
• Alongside the acquisition, the company has directly staked a further 8376 hectares of claims, bringing its total combined Mavis Lake area to approximately 22,984 hectares
• CRR will pay Power Metals C$1.2 million (A$1.09 million) in equal parts cash and scrip and a one per cent gross margin royalty for mineral production for the new property
• Following the completion of the purchase and sale agreement, the company will conduct further desktop analyses of historical results in order to shape exploration plans for 2023
• Shares in Critical Resources closed 4.44 per cent lower at 4.3 cents on Tuesday afternoon

Critical Resources (CRR) is set to buy the Gullwing-Tot Lakes property from Power Metals Corp and increase its foothold in the Mavis Lake project in Ontario by 324 per cent.

Alongside the acquisition, the company also directly staked a further 8376 hectares of claims, bringing the total combined Mavis Lake area to approximately 22,984 hectares.

Critical will pay C$600,000 (A$653,000) in cash and C$600,000 worth of company securities for the new properties. The company will also grant Power Metals one per cent gross margin royalty for mineral production to Power Metals.

CRR Managing Director Alex Cheeseman said the “significant” increase in land position was naturally aligned with the company’s focus on Mavis Lake.

“Planning has already begun to undertake exploration efforts on the newly-acquired area in 2023, as we leverage synergies with our existing Mavis Lake exploration team and build upon recent exceptional drilling results,” Mr Cheeseman said.

“To secure a significant increase in ground, contiguous with our current land holding, in a highly prospective area with known spodumene-bearing pegmatites, running along the same geological trend as Mavis Lake, is an outstanding outcome for the company and strengthens our already-impressive Mavis Lake project.”

According to CRR, the property is considered to be highly prospective for lithium mineralisation, with historical exploration identifying multiple spodumene-bearing pegmatites over the project area.

Power Metals has previously confirmed the prospectivity for mineralisation through rock chip and channel sampling, with assays recording up to 2.89 per cent lithium oxide.

Following the completion of the purchase and sale agreement, Critical Resources will conduct further desktop analyses of historical results in order to shape exploration plans for 2023.

Shares in Critical Resources closed 4.44 per cent lower at 4.3 cents on Tuesday afternoon.