Junior explorer Landore Resources (LON:LND) has agreed an option to sell its Root Lake lithium property in north western Ontario, Canada.
Buyer Ardiden will pay Landore C$50,000 (£25,000) once the option is signed and a further C$150,000 in cash and C$150,000 in shares if the option is exercised.
Landore will also have a 3% net smelter royalty on anything produced at Root Lake, which can be halved it Ardiden pays C$1mln. The option is to acquire 100% of Root Lake outright.
Ardiden, an Australian minerals group, has recently started consolidating its lithium interests and also has an option to buy the Seymour Lake project 45kmwest of Landore's Junior Lake nickel project.
Bill Humphries, Landore’s chief executive, said the company was pleased to pass on Root Lake to a dedicated lithium explorer, which leaves it free to concentrate on development of the deposit at Junior Lake.