Balkan Mining and Minerals Limited announced it has entered into a binding purchase and sale agreement to acquire 100% of the Barbara Lithium exploration project located in the Barbara Lake Area, Thunder Bay North Mining District of Ontario, Canada (the "Barbara Lithium Project" or "Project"). The Project is located in the central portion of the Barbara Lake Area and encompasses the southwestern part of Georgia Lake. The Project is located approximately 37 km northeast of Nipigon and 150 km northeast of Thunder Bay, Ontario. The Barbara Lithium Project lies in the Quetico Subprovince of the Superior Province, bounded by the granite-greenstone Wabigoon Subprovince to the north and Wawa Subprovince to the south. This Quetico Subprovince consists dominantly of clastic metasediments with interformational chemical metasediments, which deposited between 2.70 and 2.69 Ga. The clastic metasediments represent a strongly metamorphosed turbidite sequence varying from arenaceous to argillaceous with local conglomerates units. Banded iron formations within the metasediments consist of ferruginous chert, oxide (magnetitechert) and sulphide (sulphide chert) facies with localised graphite. There are numerous pegmatite and diabase dykes cross- cutting the clastic and chemical metasediments. General younging is to the north, but there are local south overturns. The rocks of the Quetico Subprovince have undergone lower amphibolite metamorphism. The Barbara Lithium Project is mainly underlain by light muscovite grey granite, considered parental rock for lithium-bearing pegmatite. A major fault crosses the area in a northwest- southeast direction.
The clastic metasediments represent a strongly metamorphosed turbidite sequence varying from arenaceous to argillaceous with local conglomerates units. The metasediments are derivatives of greywacke, arkose, and arenite. There was no systematic exploration for lithium over the Barbara Lithium Project. In total, eight diamond drill holes were drilled to the immediate east of the Project Property by Anglo American Nickel Mining Corporation Ltd. in 1968. One hole intersected 26.5 m of copper mineralisation, averaging 1 % Cu over 5.82 m, while a second hole intersected 17.3 m of copper mineralisation grading 0.54 % Cu 1. The Claim Purchase Agreement executed between the Company and 1361707 B.C. Ltd. is binding on both parties. The agreement is subject to completion of due diligence requirements to the satisfaction of the Company, before 30 April 2023. To acquire a 100% interest in the mining claims, the total consideration to be provided by the Company is: the issue of 3,000,000 fully paid ordinary shares in the Company to 1361707 B.C. Ltd. (or nominee); and Granting 1361707 B.C. Ltd. a 1.5% net smelter return royalty in respect of any mineral production from the mining claims acquired by the Company.