Landore Resources Ltd (AIM:LND, OTC:LNDLF) has entered into an option agreement with Green Technology Metals Limited (GT1) in regard to certain tenements which contain lithium prospects on the Junior Lake project in Canada.
Under the terms of the agreement, GT1 has the right to purchase an 80% interest in the tenements, which comprise 591 staked mineral claims for 10,856 hectares.
GT1 will make staged payments over three years to Landore totalling C$2.5mln in cash, and an additional C$1.5mln either in cash or by issuing Landore with shares in GT1.
"The directors are extremely pleased to have concluded this transaction with Green Technology Metals, our near neighbour of Junior Lake, for the option to explore and advance our northern lithium claims,” said Landore’s chief executive Bill Humphries in a statement.
“Landore's retained 20% interest will allow us to participate in the upside of GT1 exploration and development success on this highly prospective property. In addition, the regular income from this transaction together with the scheduled payments of the Miminiska property will allow Landore to concentrate on advancing our BAM Gold Deposit through pre-feasibility studies and drilling towards development," he added.