CriticalElements Corp. said April 28 that it has granted an exclusive rightand option to acquire up to a 70% interest in the Bourier lithium-copper project in Quebec.
"This option agreement with Lomiko will allow theBourier property to be explored in detail for a lithium pegmatite discovery.Critical Elements is currently focused on the development of its lithium project. WithLomiko farming into the Bourier project, shareholders of both companies will beable to benefit from successful exploration of a highly prospectiveproject," President and CEO of Critical Elements Jean-Sebastien Lavallee said.
Under the terms, Lomiko will earn an initial 49% stake inthe property by issuing 5 million common shares, pay C$10,000 cash and byspending C$750,000 in exploration expense on the property by Dec. 31, 2017.
After having exercised the initial option, Lomiko canincrease its interest to 70% by paying an additional C$250,000, fundingadditional exploration of C$1.3 million and by delivering an NI43-101-compliant resource estimate on the property by the end of 2018.
Following the grant of first option, Critical Elements willbe entitled to a royalty equal to 2% net smelter returns resulting from theextraction and production of any minerals on the property and half of which canbe purchased by Lomiko.
If Lomiko terminates the first option, it will pay C$500,000upon preparation of a NI 43-101-compliant mineral resource of 5 million tonnesat a cut-off grade of 0.6% lithium oxide, to be settled in cash or commonshares.
Should the mineral estimate be defined at 10 million tonnesat the same cut-off grade, Lomiko will pay C$750,000. If the resource is 15million tonnes, the payment will be C$1 million, while C$1.5 million willpayable if the estimate is 20 million tonnes.
The Bourier project consists of 228 claims for a totalground position of 11,579.28 hectares in a region of Quebec that boasts otherlithium deposits and known lithium mineralization.