Imagine Lithium (TSXV: ILI; OTC: ARXRF) has signed a field exploration agreement with Bingwi Neyaashi Anishinaabek, Biinjitiwaabik Zaaging Anishinaabek and Red Rock Indian Band, which sets out a framework for exploration activities at the company Jackpot lithium project near Thunder Bay, Ont.
“In keeping with Imagine Lithium’s ESG goals, the agreement contemplates a mutual working relationship that includes respect for the environment and First Nation traditional knowledge, First Nation opportunities for employment, education and training (including education support for First Nations students studying in a mining related field), and community meetings and activities,” J. C. St-Amour, president and CEO of Imagine Lithium, said.
Under the agreement, Imagine Lithium will grant a total of 3 million common share purchase warrants to the First Nations groups, with each receiving 1 million warrants. The warrants are exercisable at a price of $0.11 per share for a period of five years.
Separately, the company has acquired additional ground within the Jackpot project area from a third party in exchange for 8,000 shares.
The Jackpot property hosts a swarm of stacked granitic pegmatites rich in spodumene, the primary source of lithium. Historic drilling has confirmed the presence of at least two spodumene-bearing granitic pegmatite bodies (dikes), one of which contains an historical resource of 2 million tonnes at 1.09% lithium oxide (estimated in 1956).
Imagine Lithium is currently in the middle of a 3,000-metre drill program on targets in and around the main dike swarm. The program is designed to expand on the drilling conducted in 2018 by testing the eastern and western extensions of the dikes.
Highlights of the 2018 program included 5 metres at 3.02% lithium oxide, 7.23 metres at 2.47% lithium oxide and 2 metres at 4.48% lithium oxide.