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92 Resources optioning up to 75% stake in claims near Corvette lithium project

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.