The two properties, Corvet and Kaanaayaa, hold significant lithium exploration potential supported by regional geoscientific data and strategic positioning relative to a major emerging lithium district
The properties are situated within the Eeyou Istchee James Bay region of Quebec. (Credit: Doc Searls/ Flickr)
Azimut Exploration has entered into two option to joint venture agreements with Rio Tinto Exploration Canada on 7 July 2023. These agreements pertain to Azimut’s wholly-owned Corvet and Kaanaayaa lithium properties. Under these agreements, a total value of up to C$115.7m will be allocated towards expenditures and cash payments.
The properties are situated within the Eeyou Istchee James Bay region of Quebec.
The agreements stipulate that Rio Tinto has the option to acquire an initial 50% interest in each of the Properties from Azimut within a four-year period. This can be accomplished by funding $7m in exploration expenditures and making cash payments totaling $850,000 per property. Azimut will serve as the operator during this initial option phase. The commencement of exploration expenditures and cash payments, including a firm commitment of $1.5mper property within the first 12 months, will commence once wildfire restrictions in Quebec are lifted.
Rio Tinto has the opportunity to earn an additional 20% interest over a period of five years by conducting further work expenditures amounting to $50m per property. During this second option phase, Rio Tinto will act as the operator.
Azimut retains the right to secure funding for production through a loan provided by Rio Tinto, granting Rio Tinto an additional 5% interest in the properties, resulting in a total interest of 75%.
The first-year exploration programme will be conducted aggressively to assess and evaluate the lithium potential of the properties, with a budget of $1.5m allocated per property.
The Properties exhibit significant exploration potential for lithium, supported by regional geoscientific data and their strategic positioning relative to a prominent emerging lithium district.
The Corvet Property comprises 877 claims spanning an area of 423 square kilometres, while the Kaanaayaa Property consists of 421 claims and cover an area of 216 square kilometres.
While the exploration programs conducted under the Agreements will primarily target the identification of lithium-cesium-tantalum (LCT) pegmatites, it’s worth noting that both properties also hold substantial potential for intrusion-related gold-copper and magmatic nickel-copper-cobalt mineralisation.
The agreements are subject to regulatory approvals by the TSX Venture Exchange.