Toronto-listed Troilus Gold has sold a package of 1 824 claims, representing an area of 985 km², to emerging lithium miner Sayona Mining for C$40-million in shares and a 2% net smelter returns royalty on all minerals from the transferred claims.

Concurrently, Sayona has agreed to subscribe for C$4.8-million worth of shares of Troilus, bringing its investment in the gold company to 9.26%.

The transferred claims do not include any of the claims on which Troilus has a current National Instrument 43-101 gold and copper resource estimate on which its 2020 preliminary economic assessment was based, nor the ground where the majority of recent exploration activities have been undertaken.

The claims do include land that currently hosts the Tortigny deposit, which is located adjacent to existing Sayona properties and infrastructure, including its Moblan project.

“The sale is for claims considered at present to be noncore assets of the company as our current focuses are on the development and exploration of well-defined targets over the 400 km² that we have retained all while advancing the development of the Troilus project. Nevertheless, given the opportunity for continued discovery and the prospective nature of the ground being transferred, we are excited to maintain exposure through a 2% NSR,” said Troilus CEO Justin Reid.

Upon closing of the private placement, Sayona will be joining Investissement Quebec, its partner in the Moblan lithium project, as a major shareholder of Troilus.

Sayona MD and CEO Brett Lynch commented in a statement that he was looking forward to working with the Troilus team.

“Troilus and Sayona each hold development assets and significant infrastructure in the area, which will provide the opportunity for great synergy to benefit both companies moving forward.

“We look forward to working closely with the Troilus team and see the value opportunity in our investment and land acquisition as we develop and expand the Moblan project.”