DNI Metals Inc. issued a letter of default to Cougar Metals NL regarding their option agreement over the former's Vohitsara graphite project in Madagascar.
The definitive agreement finalized in March allowed Cougar to earn a 50% stake in the project.
Under the agreement, Cougar was required to complete a National Instrument 43-101-compliant resource report on the Vohitsara project by June 30.
Cougar failed to produce the report, despite being granted multiple extensions to Nov. 20, and now has seven days to fix the defaults.
DNI said Dec. 1 that it may cancel the option agreement if the problems are not addressed.
