Idaho Champion (CSE:ITKO, OTCQB:GLDRF) said it has signed a binding Letter of Intent (LOI) to acquire 266 claims located in the pegmatite-rich Eeyou Istchee James Bay territory of Quebec.
The company said the newly acquired claims are directly adjacent to and north of its existing property package, including the recently acquired contiguous ground. Idaho Champion now controls 412 square kilometres (km) in the lithium-rich James Bay region, it added.
“Idaho Champion is well positioned to make an impact within La Grande Greenstone belt, rich in lithium pegmatites. Our newly acquired ground gives us great discovery potential with properties located around excellent infrastructure,” Idaho Champion president and CEO Jonathan Buick said in a statement. “We are fortunate to have a great relationship with the private vendors that we have transacted with, and we welcome them as shareholders of the company," he added.
READ: Idaho Champion Gold Mines signs binding letters of intent to acquire land in lithium-Rich James Bay region of Quebec
As part of the LOI, Idaho Champion said it will acquire the claims for $70,000 in cash, 3.5 million of its common shares, and 1.5 million warrants priced at C$0.15 for two years from the date of signing of the definitive purchase and sale agreement and claims transfer. The common share consideration included in the LOI will incorporate a voluntary escrow of 12 months from the date of issuance, it added.
An additional 500,000 common shares will be issued as a bonus if and when lithium spodumene is discovered within 5 km of three claims boundaries that are part of the transaction. Additionally, it said the vendors will retain a 2% net smelter royalty (NSR). The company has the option to repurchase 1% of the NSR from the vendors for $1 million.
Idaho Champion noted that the projects are at an early stage of exploration, and it cautioned that the qualified persons who have reviewed and approved this news release have not verified scientific or technical information produced by third parties. Also, it said proximity to projects containing lithium resources offers no assurance that the rock types or lithium resources reported by Patriot and others extend onto the projects and such proximity is not necessarily indicative of the mineralization reported by third parties with projects in the district.
Idaho Champion is a discovery-focused exploration company that is committed to advancing its highly prospective cobalt properties located in Idaho, United States and lithium properties in Quebec, Canada.
In addition, the company owns the Baner gold project in Idaho County and the Champagne polymetallic project located in Butte County near Arco.
Contact the author at stephen.gunnion@proactiveinvestors.com