- The agreement gives Lomiko the right to acquire up to a 70% interest in the Bourier project
- The Bourier property, potentially a new lithium field, is located in an established lithium district in Quebec
- This option agreement with Lomiko will allow the Bourier property to be explored in detail for battery minerals discoveries
- Critical Elements will retain a 2% NSR on the extraction and production of any minerals on the Bourier Property
- Lomiko Metals Inc is a Canadian-based mineral exploration company
- Lomiko Metals (LMR) is up 6.67 per cent, trading at C$0.16 per share at 10:45 am ET
Lomiko Metals (LMR) has entered into an option agreement with Critical Elements Lithium Corporation.
The agreement gives Lomiko the right to acquire up to a 70% interest in the Bourier project. Lomiko will earn its interest by way of a joint venture agreement.
The Bourier property, potentially a new lithium field in an established lithium district in Quebec, consists of 203 claims covering approximately 10,252 hectares or 102.5 square kilometres.
Lomiko Metals CEO A. Paul Gill, stated,
"Recent consumer interest in electric vehicles has increased investor interest in Lithium and Graphite, two of the major components of a lithium-ion battery. Quebec is in a unique position of having ample supply of both commodities and now Lomiko has opportunities in additional battery materials."
Jean-Sébastien Lavallée, Critical Elements' CEO, added,
"This option agreement with Lomiko will allow the Bourier property to be explored in detail for battery minerals discoveries, such as Lithium, Nickel, Copper and Zinc. Critical Elements is currently focused on the development of its Rose Lithium-Tantalum project. With Lomiko as a joint venture partner in the Bourier project, shareholders of both companies will be able to benefit from successful exploration of a highly prospective project."
Outside of the work program completed between 2010 and 2012 for Zinc-Copper and Gold by Monarques Resources Inc., there has been very limited lithium exploration undertaken at the Bourier Property.
The Bourier property is adjacent to the Lemare Lithium property, wholly owned by Critical Elements, wherein 2012, a previous operator discovered a "granite pegmatite dyke containing a considerable amount of spodumene", which ranged in apparent thickness from 4.8 to 14.2 metres and was followed for close to 200 metres in length on surface.
Under the first option, Lomiko can earn 49% by paying $50,000 in cash, 5 million shares, and incurring $1.3 million in exploration expenditures by December 31, 2022.
Subject to completing this first option, Lomiko can increase its interest to 70% by paying an additional $250,000 in cash, 2.5 million shares, and incurring $2 million in exploration expenditures and delivering a NI 43-101 Resource Estimate by December 31, 2023.
Should Lomiko produce a drill-defined NI 43-101 resource estimate of between 5 and 20 million tonnes of lithium oxide, Lomiko will pay up to $2 million, payable in cash or shares, at Lomiko's discretion.
Critical Elements will retain a 2% NSR on the extraction and production of any minerals on the Bourier Property, of which Lomiko can purchase 1% for $2. million.
During the agreement, Critical Elements will be the operator on the property. Critical Elements will also retain the exclusive right to market and act as a selling agent for any and all Lithium products, including Lithium ore, concentrate and chemicals, resulting from the extraction and production activities on the Bourier Property.
Lomiko Metals (LMR) is up 6.67 per cent, trading at C$0.16 per share at 10:45 am ET.