PERTH (miningweekly.com) – Minerals explorer Argonaut Resources has moved to secure the Crescent Lake lithium project, in Ontario.
The company has signed an exclusive option agreement to acquire the two adjacent lithium deposits, Zigzag and Falcon Lake, which make up the Crescent Lake project.
Under the terms of the agreement with project owner Canadian Orebodies, Argonaut would have an exclusive option to conduct a due diligence on the project area for a period of six weeks, in return for C$20 000.
The company could exercise its options over Crescent Lake for C$50 000.
An interim option fee of C$150 000 was due in July this year, with Argonaut then having until the end of November to complete its assessment of the project, and if it elected to purchase, a further C$200 000 would be payable.
Argonaut would also be liable for a number of other payments linked to milestones at the Crescent Lake project area, including a C$400 000 cash or share payment on the announcement of a maiden resource and a C$1-million cash or share payment on a decision to mine.
The claims were also subject to a 2% royalty, payable to the historic vendors.
The project consists of 12 claim areas in two clusters, and is situated some 250 km from Thunder Bay, which has a major port facility.