Hertz Lithium Inc (CSE:HZ, OTCQB:HZLIF) announced that it has entered into an option agreement to acquire a 100% interest in the Maskwa lithium property in Quebec from Sirios Resources (TSX-V:SOI) Inc.
The mineral exploration company said to exercise the option it must pay Sirios $100,000 within three business days of the execution of the option agreement, plus pay $100,000 in cash and $100,000 either in cash or in common shares upon the earlier of receipt of the surface sampling results from the laboratory engaged by the company to carry out the analysis of the surface samplings from the property, or by December 20, 2024.
Hertz noted that it must also incur not less than $500,000 in exploration expenditures on the property on or before December 31, 2024, incur an additional $750,000 in exploration expenditures on the property on or before December 31, 2025, and incur an additional $1 million in exploration expenditures on the property on or before December 31, 2026, exclusive of any tax.
As well, the company must pay Sirios Resources (TSX-V:SOI) $250,000 either in cash or in common shares upon the successful confirmation of drilling results indicating a lithium concentration of 1% Li2O or more over a minimum of 25 meters on the property.
Furthermore, Hertz will grant Sirios a 1.5% net smelter return (NSR) royalty on the property.
Hertz Lithium is a British Columbia-based mineral exploration company engaged primarily in the acquisition and exploration of mineral properties while also working to develop a novel lithium extraction technology.