PioneerResources Ltd. is acquiring up to an 80% stake in InternationalLithium Corp.'s recently acquired Raleigh lithium project in Ontario, the second optiondeal Pioneer signedwith the latter since March, according to a July 13 press release.
Under the option deal, Pioneer may earn a 51% interest byspending nearly C$1.3 million on exploration activities within three years andpaying a total of C$250,000, in equal proportion of cash and shares, over theperiod.
International Lithium will be granted a 1.5% net smelterreturn royalty purchasable at any time for C$1.5 million following the firstearn-in.
Pioneer will either form a joint venture with additionaldevelopment expenditure met on a pro rata basis, or earn an additional 29% bycompleting a prefeasibility study within seven years. After that, the joint venturepartners will contribute on a pro rata basis.
If either party dilutes to 15% project equity, it willretire from the joint venture and revert to a 1.5% royalty.
Pioneer may participate in the acquisition of other lithiumproject opportunities identified by International Lithium Corp.