Bourier project is potentially a new lithium field in an established lithium district in Quebec
Lomiko will earn stake in the project by way of a joint venture arrangement. (Credit: Tumisu from Pixabay)
Lomiko Metals has reached an option agreement with Critical Elements Lithium to obtain the right to acquire up to a 70% interest in the Bourier project in Canada.
Under the agreement, Lomiko will earn stake in the project by way of a joint venture arrangement.
According to Critical Elements, the Bourier project is potentially a new lithium field in an established lithium district.
It consists of 203 claims for a total ground position of 10,252.20ha in a region of Quebec that is said to hold other lithium deposits and known lithium mineralisation.
Under the terms of the option agreement, Lomiko is entitled to earn the initial 49% interest in the Bourier property on or before 31 December 2022.
To earn the initial stake, the company will have to issue an average of 5,000,000 of its common shares to Critical Elements, in addition to cash payment of $50,000 and funding a total of $1,300,000 for exploration on the property.
Lomiko Metals chief executive officer A Paul Gill said: “Recent consumer interest in electric vehicles has increased investor interest in Lithium and Graphite, two of the major components of a lithium-ion battery.
“Quebec is in a unique position of having ample supply of both commodities and now Lomiko has opportunities in additional battery materials.”
Based on Lomiko exercising the first option, it will obtain the exclusive right and option to increase its undivided interest in Bourier property from 49% to 70%.
The company is required to make a cash payment of $250,000 to Critical Elements and issue an average of 2,500,000 of its common shares.
Also, it has to fund additional exploration expenditures for $2,000,000 and deliver a resource prepared in compliance with NI 43-101 standards on the Bourier property.
Critical Elements will serve as the operator during the earn-in period and will be responsible for carrying out exploration on the property, bearing its expenditures.
In the event of a lithium discovery, Critical Elements will retain exclusive rights to market and act as selling agent for all Lithium products from the Bourier property.
Critical Elements chief executive officer Jean-Sébastien Lavallée said: “This option agreement with Lomiko will allow the Bourier property to be explored in detail for battery minerals discoveries, such as Lithium, Nickel, Copper and Zinc.
“Critical Elements is currently focused on the development of its Rose Lithium-Tantalum project. With Lomiko as a joint venture partner in the Bourier project, shareholders of both companies will be able to benefit from successful exploration of a highly prospective project.”