PlatypusMinerals Ltd. and St-Georges Platinum & Base Metals Ltd. are acquiringon a 70/30 basis, respectively, the Royal lithium prospect in Quebec, accordingto a July 26 statement.
Royal, which consists of five contiguous claims covering 286hectares, hosts a resource of 42 million tonnes at 1.10% lithium oxide. It wasrecently acquired from administrators by Jilin Jien Nickel Industry Co. Ltd.
Under the binding memorandum of understanding, Platypus andSt-Georges will pay the vendors a C$10,000 option fee to conduct due diligenceon the Royal claims.
Following due diligence and receipt of the independent geologist'sreport, Platypus and St-Georges will pay C$10,000 and another C$50,000 on thefirst anniversary of the final acquisition deal.
Platypus will also issue 3,000,000 of its shares after completingdue diligence, while St-Georges will issue 3,000,000 of its shares in stagedpayments.
The two purchasers will also spend C$450,000 on the claimsover three years.
The vendors retain a net smelter royalty of 1%, half ofwhich may be purchased for C$1.0 million.
Noncumulative milestone payments, either in cash or shares,of C$500,000 are payable for a resource of over 5 million tonnes at 1.0%lithium oxide and C$1.0 million for a resource of over 10 million tonnes at1.0% lithium oxide.