Idaho Champion (CSE:ITKO, OTCQB:GLDRF) said it has entered into a definitive purchase and sale agreement with Quebec Precious Metals Corporation (QPM) with respect to the Blanche and Charles lithium pegmatite projects in the Eeyou Istchee James Bay territory of Quebec.
On September 19, 2022, Idaho Champion announced that it had entered into a binding memorandum of understanding (MOU) with respect to the acquisition of the projects.
The new agreement replaces the MOU and reflects the terms, including that Idaho Champion will acquire 100% of the projects from QPM in return for $100,000 in cash and 12,000,000 common shares of the company, of which 50% will be subject to escrow for 18 months.
READ: Idaho Champion set to kick off exploration on its cobalt projects in Idaho
QPM will retain a 2% net smelter return royalty (NSR) on the claims constituting the projects. The company will have the option to repurchase 1% of the NSR from QPM for $1 million.
Closing of the acquisition remains subject to customary conditions for a transaction of the type contemplated by the agreement.
The parties are diligently engaged in satisfying any remaining conditions with closing expected to occur as soon as possible, but in no case later than an agreed outside date of November 30, 2022.
The company said it will provide additional information on the completion of the acquisition.
Idaho Champion Gold Mines 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 in Butte County near Arco.
Contact the author at jon.hopkins@proactiveinvestors.com