- Sirios Resources (SOI) signed a $4.55-million agreement to sell the Pontax Property in Quebec to Cygnus Gold
- The agreement includes a $1.2 million cash payment and 750,000 shares of Cygnus owed to Sirios on closing
- Up to $3 million and one million additional shares are expected to be paid if a future lithium resource on the property is found
- Sirios holds a 1.50 per cent net smelter return royalty with a buy-back clause
- Sirios Resources (SOI) was unchanged at $0.06 per share at 11:34 a.m. EST
Sirios Resources (SOI) has signed a $4.55-million agreement to sell the Pontax Property in Quebec.
The company signed the agreement to sell the property to Australian company, Cygnus Gold.
The agreement includes a $1.2 million cash payment and 750,000 shares of Cygnus owed to Sirios on closing. Additionally, up to $3 million and one million additional shares are expected to be paid if a sizeable lithium resource is found on the property.
Lithium resource findings cue more payments
Specifically, a resource of four million metric tonnes with a minimum grade of 0.80 per cent lithium oxide needs to be discovered on the property. After that, Cygnus will be required to make a further cash payment of $1 million and issue 500,000 shares.
Lastly, another $2 million and 500,000 shares will be due if the resource on the property reaches six million metric tonnes with the same minimum grade.
Sirios agreed to hold a 1.50 per cent net smelter return royalty with a buy-back clause. Cygnus may buy back 0.75 per cent of the royalty for $600,000.
Sale supports other major projects
“We are very pleased with this transaction involving the sale of the Pontax property, which will provide Sirios with additional necessary funds, without diluting its capital stock, to pursue the development of Sirios’ major projects, including Cheechoo and Aquilon,” stated Dominique Doucet, President and CEO of Sirios.
Completion of the Pontax property sale is still subject to other conditions being met.
Sirios Resources (SOI) was unchanged at $0.06 per share at 11:34 a.m. EST.
