Kenorland Minerals Ltd (TSX-V:KLD) said it has agreed to option its Rupert lithium project in Quebec to Li-FT Power Ltd, a private company based in British Columbia.
In order to earn a 100% interest in the property, Li-FT will need to make cash payments of $200,000 and issue common shares representing 10% of its outstanding stock at the time of closing and from time to time until the shares of Li-FT are directly or indirectly listed on a recognized stock exchange in North America, Australia, or the UK.
Kenorland will retain a 2% net smelter return (NSR) royalty on the Rupert project.
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The parties will also enter into an operating agreement whereby Kenorland will be engaged by Li-FT to operate the property for an initial two-year term.
The Rupert project covers about 155,533 hectares, or 1,555 square kilometres, of mineral tenure in the James Bay region of Quebec, and is composed of three separate areas: the Pontax Trend, the Moyenne Trend, and the Whabouchi Trend.
Vancouver, British Columbia-based Kenorland Minerals currently holds three projects where work is being completed under an earn-in agreement from third parties. The Frotet and Chicobi Projects, both of which are located in Quebec, are optioned to Sumitomo Metal Mining Canada Ltd and the Chebistuan Project, also located in Quebec, is optioned to Newmont Mining.
Kenorland also owns 100% of the advanced stage Tanacross porphyry copper-gold project as well as an option to earn up to 70% from Newmont Corporation on the Healy Project, both of which are located in Alaska.
Contact Sean at sean@proactiveinvestors.com