Imagine Lithium and Rock Tech to collaborate on developing Northern Ontario supply chain
IMAGINE LITHIUM INC. is strengthening its Northern Ontario strategy by entering into a memorandum of understanding with Rock Tech Lithium to explore cooperation opportunities, including but not limited to commercial partnership structures, M&A schemes, joint exploration and development of their projects. The two companies will explore proximal synergies between the adjacent and nearby properties with the joint target to develop a reliable raw material supply chain to support Rock Tech's proposed lithium converter along Lake Superior's North Shore.
Rock Tech's Georgia Lake property, spanning approximately 5,700 hectares, and Imagine's Jackpot Project, which encompasses nearly 19,000 hectares, share contiguous boundaries between both companies' respective projects, which are internally connected by the Gorge Creek Road. Further, the Jackpot Project is strategically situated within 15 kilometres of the planned Georgia Lake concentrator in the Northern Spodumene Pegmatite area. Both companies have been actively engaged in exploration drilling, resulting in the identification of significant spodumene-bearing pegmatites and expanding on known resources.
"The growth potential is enormous if we collaborate with our neighbours in this area. We have already demonstrated that we can derive real economic value from mineral resources in our Northern Spodumene Pegmatite area. Developing accretive synergies in the Southern Spodumene Pegmatite area with our neighbour provides a genuine opportunity to transform the region into a leading lithium hub," said Robert MacDonald, General Manager of Rock Tech.
Imagine Lithium's J.C. St-Amour, President, also appreciates the joint development opportunities, "Given the proximity of our projects to each other, collaboration with Rock Tech would only strengthen the potential economics of a standalone development in the Nipigon area, strategically proximal to the downstream opportunities. Imagine continues to have ongoing drilling success in the main Jackpot zone, as well as defining multiple new and exciting spodumene bearing pegmatites across our extensive landholding. Following the upcoming winter drill program, we expect to release a 43-101 resource estimate for the property in Q2 of 2024. In addition, Imagine remains well funded, following a $9.1 M placement in April."
The collaboration between the two companies will unlock and deliver significant value for shareholders, including joint exploration, processing ore in a centrally located concentrator, and shared infrastructure development. In the coming weeks, both companies will assess the mutual interests. Rock Tech will also reassess its target date for starting operations at Georgia Lake to align with the execution of its converter strategy.
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