Esports and gaming company Mogul Games Group Limited (ASX:MCG) has entered into five binding sale and purchase agreements to acquire an interest in lithium and rare earth exploration projects in Canada and Australia.
The acquisitions comprise an 80 per cent interest in the Apollo Lithium, Adina South, Adina West and Margot Lake lithium projects in Canada, an 80 per cent interest in the Australian Voyager Project, and a 100 per cent interest in the Lefroy Project, which is also in Australia.
Mogul intends to raise up to $4.5 million (before costs) through a public offer to support the exploration of the projects.
The company will also appoint Iggy Tan, former Managing Director of Galaxy Resources, as chairman of the board.
The acquisitions will amount to a significant change to the nature and scale of the company’s activities, requiring it to obtain shareholder approval at a general meeting and re-comply with the ASX Listing Rules.
As a part of this process, the company intends to consolidate the current shares on issue on a 20-to-one basis, subject to shareholder approval.
Once the acquisition and regulatory process is complete, Mogul will be reinstated to the ASX as a diversified explorer and developer with a focus on lithium and rare earths.
Reflecting this new direction, the company intends to seek shareholder approval to change its name to Lithium Galaxy Limited.
The Canadian lithium projects Mogul plans to acquire are in close proximity to several impressive recent discoveries and are considered highly prospective for lithium.
The company’s initial focus will be exploration of the Apollo Lithium Project, with funds raised in the public offer put towards an accelerated exploration program.
This program will start with the systematic mapping, geochemical soil sampling and geophysical surveys of 17 pegmatite outcrops and the northeast-southwest trending topographic highs previously identified by the Quebec government.
Concurrently, an airborne geophysical and remote survey will be conducted to concentrate field works and provide high-priority drill targets for the maiden drilling campaign.
The exploration program at the Adina and Margot Lake projects will focus preliminary field mapping and geochemical soil sampling to assist in drill program planning.
In Australia, the Lefroy Project is about 20 to 30 kilometres southeast of Kambalda in Western Australia’s Eastern Goldfields region, which is home to some of the largest operating mines and exploration discoveries of the past century.
Funds raised from the public offer will be used to fund an exploration program including surface mapping, geochemical soil sampling and geophysical surveys to identify drill targets for drill testing.
The Voyager project consists of two exploration licence applications in northern and eastern Tasmania, with the northern parts proximate to Abx Group’s (ASX:ABX) Deep Leads and Rubble Mound rare earth discoveries.
The discovery of ionic absorption clay type (IAC) rare earth element mineralisation by Abx highlighted the significant potential of hosting economic deposits in the region.
While there has been little historical exploration undertaken on the Voyager tenements, the company believes that regional in-situ bauxite and clay occurrences within the areas of massive Jurassic dolerite intrusions provide potential sites for hosting rare earths.
