St-Georges Eco-Mining Corp. signed a binding term sheet with Hipo Resources Ltd. to provide research and development using products, extraction methods and proprietary technology to develop the latter's Kamola lithium project in the Democratic Republic of the Congo.
Hipo will issue up to 27 million common shares over three years, contingent on St-Georges reaching certain performance benchmarks, according to an Aug. 8 news release.
The parties will establish a royalty stream on the commercial output from the Kamola project for the entire mine life, subject to Hipo using St-Georges' technology. The royalty will be a 5% net revenue interest or net revenue return.
The companies are to sign a definitive agreement based on the term sheet.
In December 2017, St-Georges entered into a licensing agreement with Iconic Minerals Ltd. allowing it to exclusively use the technology in Nevada for extracting, processing and selling lithium from its Bonnie Claire project.