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Todd River Resources has struck an agreement to acquire three lithium exploration projects in the Northwest Territories, in Canada, which could be transformative for the company.

The ASX-listed company has entered into a binding sales agreement to acquire the Ross Lake, MAC and Halo-Yuri lithium projects, which jointly comprise 500 km2 of tenements.

Under the terms of the agreement, Todd River would issue 340.6-million shares, at a price of 10c each to the vendors, as well as 500-million performance rights, subject to vesting conditions.

The company would also pay the vendors C$1.35-million in cash and a 2% royalty on a gross revenue or net smelter return basis, derived from any future production from the mineral claims.

“The acquisition of the Northwest Territories lithium projects and concurrent capital raising marks an exciting new chapter for Todd River, positioning us in one of the world’s most rapidly emerging lithium provinces. Limited historic mapping and sampling at the Ross Lake and Halo-Yuri projects have extremely promising results, confirming the presence of spodumene within extensive pegmatite bodies across both projects,” said Todd River MD Will Dix.

“Under the management of Dahrouge Geological Consulting, we are excited to immediately embark on our own fieldwork, which will not only build upon the documented spodumene occurrences but also enhance our understanding of pegmatite distribution, especially at Ross Lake. As we progress through this initial phase of exploration, we eagerly anticipate sharing our findings with the market.

“The Northwest Territories, particularly the Yellowknife region, has a storied history of lithium exploration dating back to the 1950s. However, it had somewhat faded from recent exploration focus, with James Bay in Quebec taking centre stage. It wasn’t until late 2022 when Li-FT Power secured its potentially world-class Yellowknife lithium project that the Northwest Territories regained serious attention,” said Dix.

In addition to the acquisition, Todd River on Wednesday also announced a A$5-million capital raise through a share placement to sophisticated and professional investors. The placement will be priced at 1c a share, representing a 10% discount to Todd River’s ten-day volume weighted average share price.

Funds raised under the placement will be used to fund exploration and development both at Todd River’s existing projects and the newly acquired Canadian projects, as well as for general working capital.