Usha Resources acquires potential Company Maker project!

Only recently, Usha Resources (WKN A3D5BX / TSXV USHA) granted prospective, Nasdaq-listed lithium producer Stardust Power (market cap US$675 million) the option to acquire up to 90% of the Jackpot Lakes lithium brine project. If the deal is finalized, it would have a total value of US$26.025 million spread over five years, with US$8 million fixed for work on the project and the remainder in cash or shares to Usha. However, Usha’s busy CEO Deepak Varshney is not waiting until the transaction is officially in the bag, too, but has already landed a new, extremely promising project for his company!

As has just been come over the ticker, Usha has secured the option to acquire 100% of the Southern Arm copper property from Abitibi Metals (WKN A3EWQ3 / CSE AMQ). The special feature: This is not a Greenfields project that is still at the very beginning of exploration. On the contrary, on completion of the transaction, Usha will be able to tackle a project on which Abitibi has already proven an approximately 7.3 kilometers long copper and gold trend with numerous targets!

Excellent neighborhood

This trend extends along the regional Bapst Fault within the Brouillan-Fenelon Group volcanic rocks that host the nearby Selbaie mine (~15 km to the west) and the B26 deposit (~16 km to the southwest). According to the company, the potential for VMS-style polymetallic mineralization is especially high, here.

To illustrate the potential: Abitibi’s B26 copper deposit already has an indicated resource of 6.97 million tons at 2.94&% copper equivalent and an inferred resource of 4.41 million tons at 2.97% copper equivalent, even before recent drill results are included. The Fenlon gold project, also located nearby, has an indicated resource of 2.4 and an inferred resource of 1.7 million ounces of gold, while the Selbaie mine has historically produced 53 million tons at 0.94% copper, 1.9% zinc, 0.58% gold and 40.7 g/t silver!

Targets already identified, first drillings already in fall!

As mentioned, numerous drill targets have already been identified on Southern Arm, including one called Hollywood where anomalous (read “elevated”) metal grades have already been detected over an area of around 1.8 kilometers! And according to CEO Varshney, Hollywood remains open for expansion…

This and the other exploration targets on Southern Arm have been developed by Abitibi’s technical team, who will continue to advise Usha as the company advances its exploration strategy. A fully funded drill program is planned for the fall of this year, already.

Usha hast to issue a total of 5 million shares to Abitibi to acquire the Southern Arm project – 2.5 million now and 2.5 million on the first anniversary of the agreement – and invest 2 million dollars into the exploration of the project by the second anniversary of the agreement.

Conclusion: If the planned transaction with Southern Arm is implemented as proposed, Usha will become a diversified North American metals company with the opportunity to develop an already advanced project in one of Canada’s best mining provinces. And Southern Arm, emphasizes CEO Deepak Varshney, could become a company maker for Usha. In any case, we are already extremely excited about the – fully financed – first drilling program this autumn!