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Strongbow options lithium brine exploration rights to Cornish Lithium

Strongbow Exploration Inc. on Jan. 19 said it entered an option agreement with Cornish Lithium Ltd., giving the latter the right to explore and potentially develop lithium in hot spring brines and associated geothermal energy on all of Strongbow's mineral projects in Cornwall, U.K.

The deal with Cornish Lithium unit Cornish Minerals Ltd. (Bermuda) calls for the former company to issue US$50,000 in shares to Strongbow upon signing.

Cornish Lithium will also be required to renew its exploration rights on each anniversary.

Strongbow will have a 25% free carried interest in the first project to a completed bankable feasibility study and 10% free carried interest in each subsequent project to the same stage.

The company will also receive a 2% gross revenue royalty from any production of metals from brines and an additional 2% gross revenue royalty from any geothermal energy produced and sold.