92 Resources Corp. entered into an option agreement with Osisko Mining Inc. to acquire up to a 75% interest in 28 claims directly adjoining the company's Corvette lithium property in Quebec's James Bay region.
The claims comprise the eastern portion of Osisko's FCI property, according to a Sept. 4 release.
Under the terms, the company is required to issue a total of 2 million shares, and incur around C$2.3 million in work exploration expenditures to acquire a 50% interest in the property by the third year of deal closing.
Osisko will be the operator of the FCI property during the 50% earn-in term. The companies will form a joint venture upon 92 Resources earning the 50% interest.
92 Resources will then have the option to lift its project stake to 75% and become project operator by incurring an additional C$2 million in work expenditures.
Osisko's remaining 25% interest may be further reduced through dilution if it elects to not fund its portion of exploration/development.
Should Osisko's ownership fall below 10%, it will have the right to convert the remaining interest into a 1% net smelter royalty. 92 Resources would have the right to buy that royalty for C$5 million.