Newpeak Metals Shifts Gears To Focus On Uranium And Rare Earth In Canada

NewPeak Metals Ltd (ASX: NPM) has signed a deal to acquire a tenement package encompassing uranium, rare earth and scandium in Canada.

The package covers 16,100 hectares in the George River area, stretching across Quebec and Labrador.

Rejuvenation plans

This acquisition marks a significant initial step of NewPeak’s rejuvenation plans by entering the strategic critical minerals space.

It follows the recent completion of the sale of NewPeak’s gold permits in Finland, signifying a clear shift in the company’s focus.

Importantly, the consideration for the acquisition is A$500,000 by way of NewPeak shares (and no cash).

NewPeak will also grant a 2% net smelter royalty and a A$300,000 milestone payment on completing exploration expenditure of A$500,000.

District-scale portfolio

The tenement package in Canada is a district-scale portfolio of uranium, rare earth elements (REE) and scandium properties.

They are in close proximity, with a part contiguous, to the Strange Lake Rare Earth Project currently under development by Torngat Metals Ltd.

The Strange Lake Rare Earth Project boasts an indicated resource of 278 million tonnes at 0.93% TREO (total rare earth oxides).

Stewart Lake Property

NewPeak’s acquisition specifically includes the Stewart Lake Property located ~16 kilometres northeast of Strange Lake.

Stewart Lake consists of 7,767 hectares of claims that straddle the Quebec-Labrador border.

The uranium mineralisation at Stewart Lake measures roughly 500 meters wide and 2 km in strike length and is associated with well-defined electromagnetic conductors.

Next steps

NewPeak is undertaking a capital raising as a part of this transaction comprising a A$500,000 rights issue a A$500,000 placement, both at A$0.015 per share.

On the close of the acquisition, NewPeak will start an aggressive exploration program to move the project towards defining JORC mineral resource.

NewPeak plans to utilise proceeds from recent asset sales and continue the divestment of its other assets (Argentina Gold and Sweden Tungsten) to fund the exploration.

 

 

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