Kenorland Minerals Ltd (TSX-V:KLD) told investors it has entered into a definitive purchase agreement with Targa Exploration Corp under which Targa will acquire a 100% interest in and the rights to 844 mining claims making up the Opinaca lithium project in northern Quebec.
Under the agreement, Kenorland said Targa will also acquire the rights to two mineral exploration license applications which cover numerous lithium-bearing pegmatite occurrences in eastern Manitoba.
As payment for the projects, Targa will issue Kenorland 4,377,375 common shares, grant it a 3% net smelter royalty over the projects, and pay $100,000 in cash at the closing of the sale.
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Following the closing, which is expected to occur in January 2023, Kenorland will also be entitled to receive 9.9% of the common shares or other equity securities issued by Targa in future financings until Targa has raised an aggregate of not less than $5 million, the company added.
The Opinaca project covers 43,595 hectares and 40 kilometers of strike length within the Opinaca sub-province in the James Bay region of northern Quebec.
The project covers a discrete cluster of highly anomalous and coincident regional lithium and cesium lake sediment geochemical anomalies which potentially suggest the presence of lithium-cesium-tantalum pegmatite mineralisation. There has been no recorded historical exploration completed in the project area.
Kenorland Minerals is focused on early to advanced stage exploration in North America. The company currently holds four projects in Quebec, where work is being completed under joint venture and earn-in agreements from third parties.
Contact the author at stephen.gunnion@proactiveinvestors.com