TSX-V-listed CleanTech Vanadium Mining Corporation has entered into a binding option to purchase agreement with an arms-length private party to acquire the mineral rights to the Campbell, Crotser and Swinford land parcels totalling 250 acres in Kentucky, in the US.

The parcels will be acquired through CleanTech’s wholly-owned subsidiary US Flourspar for a consideration of $2-million.

Of this amount, $75 000 is due upon signing of the agreement, another $75 000 is payable before the first anniversary of the signing of the agreement upon CleanTech’s election, with the balance of $1.85-million due when the title of the project is transferred to CleanTech.

The Campbell Crotser fluorspar project is based in the historical Illinois-Kentucky Fluorspar District, which has long been recognised as North America’s most prolific fluorspar producing belt.

The mineral belt spans about 540 square miles across western Kentucky and southern Illinois and has produced about 3.5-million tons of fluorspar since commercial mining started in the 1870s.

A historic mineral resource estimate conducted in 1974 for the Campbell Crotser project reported an 805 841 t resource grading 37% calcium fluoride, 3.23% zinc and 0.99% lead, however, CleanTech is not treating this data as a current mineral resource.

Development of the Campbell Crotser fluorspar project will benefit from existing infrastructure , including processing capacities, in the area.

CleanTech and its subsidiary are confident in the market prospects for fluorspar, as it is vital in the production of nuclear power, lithium batteries, semiconductors, high-voltage electrical switches, refrigerant for air conditioning, steel and aluminium.

“We are witnessing a highly competitive global land-grab of fluorspar resources. Through this acquisition, Cleantech is leading the US fluorspar foray in the junior mining space," says CleanTech president Ron Espell.

China is currently the largest producer of fluorspar worldwide, accounting for 60% of global production at about 5.7-million tonnes. China is also a significant importer of fluorspar owing to rising demand for energy storage systems, including batteries.