ASX-listed SayonaMining Ltd. inked a legally-binding term sheet to acquire 's lithium project inQuebec, Canada, for C$4 million, Glen Eagle said May 3.
The project area comprises 19 mineral claims totaling 653 hectares,and extends 3.4 kilometers in an east-west direction and 3.1 kilometers in a north-southdirection.
Sayona has made a nonrefundable C$50,000 payment for full exclusivityto purchase the project during the 60-day due diligence, which can be acceleratedto complete the transaction. The company will deduct this sum when the full paymentof C$4 million is made within seven days.
Following the sale, Glen Eagle plans to focus on its core businessof gold production with about C$2.5 million in working capital and no debt.
According to a January 2013 preliminary economic assessment report,the Authier lithium project contains 73,999 tonnes of contained lithium oxide inthe measured and indicated resource categories, and 14,899 tonnes of contained lithiumoxide in the inferred category.
Sayona is planning to explore different financing options tofund the acquisition price, including strategic investment in the project by potentialproduct off-takers, equity and royalty streams.