Lomiko Metals to expand critical mineral portfolio with Yellow Fox acquisition

Lomiko Metals Inc. has taken a decisive step in advancing its critical mineral ambitions with the acquisition of the Yellow Fox property in central Newfoundland. This acquisition, formalized through a definitive agreement with Metals Creek Resources Corp., includes 28 contiguous mineral claims covering seven square kilometers of land with significant potential for antimony mining alongside gold and silver deposits.

Scheduled for completion by February 28, 2025, pending approval from the TSX Venture Exchange, the deal positions Lomiko to bolster its role as a key player in North America’s critical mineral sector.

What is the significance of the Yellow Fox acquisition?

The Yellow Fox property represents a unique opportunity for Lomiko Metals to diversify its portfolio with antimony, a critical mineral designated by Canada due to its essential applications in industrial processes. Antimony is used in flame retardants, semiconductors, and defense technologies, making it increasingly vital for North American industries.

Recent geopolitical developments, including China’s 2024 ban on antimony exports to the United States, have underscored the need for regional self-reliance. Prices for antimony surged 250% in 2024, highlighting its growing importance as a strategic material. With this acquisition, Lomiko aims to contribute to the development of a secure and sustainable critical mineral supply chain in North America.

Why is Yellow Fox strategically important?

Located approximately 10 kilometers southwest of Glenwood, Newfoundland, the Yellow Fox property features favorable geology. Early exploration work, including airborne surveys and trench sampling, has revealed promising mineralization. Grab samples from the site have returned results of 59.43 g/t gold, 11.10% antimony, and 72.90 g/t silver.

The property is situated along the same geological trend as the Beaver Brook antimony mine, a historically significant producer in the region. This strategic location strengthens Lomiko’s potential to develop a high-value mining operation that aligns with its focus on critical mineral exploration.

How does the acquisition complement Lomiko’s existing projects?

The Yellow Fox acquisition is part of Lomiko’s broader strategy to establish itself as a leader in the critical minerals sector. The company has already demonstrated its commitment to advancing critical resources through its flagship La Loutre graphite project in Quebec.

La Loutre boasts an updated Mineral Resource Estimate (MRE) of 64.7 million tonnes of Indicated Mineral Resources with 4.59% graphitic carbon, representing a 184% increase in tonnage since 2021. This project is situated in the Kitigan Zibi Anishinabeg First Nation’s territory, emphasizing Lomiko’s adherence to responsible mining practices.

In addition to La Loutre, Lomiko holds a 49% stake in the Bourier lithium project near Quebec’s James Bay, a region renowned for its lithium deposits. With these projects, Lomiko is positioned to address the growing demand for battery materials critical to the clean energy transition.

What are the next steps for Yellow Fox?

Following the completion of the acquisition, Lomiko plans to initiate a soil sampling program in spring 2025 to refine exploration targets. This program will focus on pathfinder elements such as arsenic, which indicate the presence of gold and antimony in bedrock. If successful, the company will expand the exploration program to include drilling.

The acquisition agreement includes staggered payments totaling $64,750 and Lomiko shares valued at $328,375, with Metals Creek retaining a 2% net smelter royalty. This structured deal ensures a long-term partnership between the two companies as Lomiko advances the project.

What role does antimony play in critical mineral strategies?

Antimony’s versatility makes it an essential resource across multiple industries. It is a key component in flame retardants, semiconductors, automotive parts, and defense applications, including infrared detectors and silicone wafers.

As global demand for antimony increases, its supply chain faces significant challenges. China’s dominance in antimony production and recent export restrictions have created an urgent need for alternative sources. Lomiko’s acquisition of the Yellow Fox property positions it as a potential leader in meeting this demand while contributing to North America’s industrial resilience.

Lomiko Metals’ acquisition of the Yellow Fox property underscores its strategic commitment to critical mineral development. By targeting antimony mining potential, gold, and silver, the company aims to strengthen North America’s critical mineral supply chain and reduce reliance on external sources.

As the demand for critical minerals continues to rise, Lomiko’s focused efforts in Newfoundland, Quebec, and beyond highlight its role as a key player in the future of sustainable resource development.