Golden Goliath Resources has signed an option agreement to acquire a 100% stake in the Ernest Rare Earth Element (REE) prospect in Quebec, Canada.
Under the deal with an undisclosed firm, Golden Goliath will pay $130,000 and issue 1,850,000 shares.
The firm will also provide $300,000 to fund work at the project over a four-year period. The deal is subject to regulatory approval.
Golden Goliath plans to undertake an exploration programme on the property this summer.
In a press statement, Golden Goliath said: “Initial examination of the government showing could be followed up by detailed prospecting and hand-trenching to determine extents, orientations, and geometries of any similar dykes in the area.
“An examination of the potential for rheologically-controlled pegmatite dyke emplacement between gabbronoritic and mangeritic units would also be of value.”
To ascertain the extents, orientations, and geometries of any comparable dykes in the area, the Quebec government’s study of the property may be followed up with thorough prospecting and hand-trenching, the firm said.
In 2003, the provincial government gathered the property’s lake sediments that reportedly returned anomalous REE values.
Located 200km north of Baie Comeau, the property is supported by rocks of the mesoproterozoic Canyon Complex, which also host panels and rafts of metasediments associated with the mature Plus-Value Complex, as per the Ministère des Ressources Naturelles (MRN) synopses.
The complex comprises a panel of migmatitic, gneissic gabbronorites, with subordinate felsic material.
Golden Goliath CEO Paul Sorbara said: “Quebec’s potential for REE deposits is quickly becoming apparent.
“We are very excited to have been able to acquire this early-stage exploration project in a fascinating geological setting with such great access in the area of other REE deposits in one of Canada’s most favourable mining jurisdictions.”