The lithium project is a joint venture between Sunstone and Nortec Minerals
Sunstone Metals has signed a letter of intent (LoI) with United Lithium to sell the Finland lithium project in a cash and stock deal.
The company owns an 83.6% stake in the project, which is a joint venture with Nortec Minerals that holds the remaining stake of 16.4%.
ULTH will buy the stakes of both parties in the project that includes the Kietyönmäki lithium occurrence.
According to Sunstone, drilling conducted on the project has delivered 1.4% lithium oxide at a depth of 24.2m, in a spodumene-bearing pegmatite.
Sunstone managing director Malcolm Norris said: “We are pleased to be entering this transaction and finalising a definitive agreement with United Lithium.
“This transaction gives us some cash for our Ecuadorian copper-gold focussed exploration campaign while enabling us to retain exposure to the upside offered by the ULTH lithium assets.”
Sunstone will receive a consideration of A$879,000 ($680,521) for the sale, upon closing and signing of the definitive agreement.
The LoI signed by the companies allows for a 75-day exclusivity period during which a definitive agreement will be negotiated, and due diligence undertaken.
Sunstone has an advanced portfolio of exploration projects in Ecuador that include the Bramaderos gold-copper project and the El Palmar copper-gold project.
In the Bramaderos Gold-Copper Project, Sunstone owns an 87.5% stake, while the remaining is held by Cornerstone Capital Resources.
Located in Loja province, southern Ecuador, the project is said to be highly prospective for the discovery of large porphyry gold-copper systems, and high-grade epithermal gold systems.
Sunstone is expected to acquire 100% stake in the 800ha El Palmar copper-gold porphyry project through a staged acquisition agreement.
In January, the company signed agreements to divest its Southern Finland Gold assets that include an exploration permit surrounding the Jokisivu gold mine and its subsidiary, Kultatie Holding, the holder of the Southern Finland Gold project.
Consisting of the Satulinmäki and Riukka gold prospects, the Southern Finland Gold project is located approximately 110km northeast of Helsinki.