TSX-listed graphite exploration company Focus Graphite has signed a letter of intent (LoI) to sell its 50% interest in the Kwyjibo rare earth elements project to Investissement Québec for C$7.2-million.
The project, totalling 116 map-designated claims and covering 6 283.5 ha, is located a few kilometres north of Manitou Lake, about 125 km northeast of Sept-Îles, in the Côte-Nord administrative district of Québec
The Kwyjibo claim block is also located 25 km east of the Québec North Shore and Labrador rail line and is accessible by air from float plane and helicopter bases located in or near Sept-Îles.
The closing of the transaction is expected to occur on May 14, or on any other date agreed by the parties and is subject to the fulfilment of customary conditions.
Focus Graphite CEO Gary Economo said on Thursday the sale of this asset would unlock significant value for the company’s shareholders and would allow Focus Graphite to prioritise its resources on the remaining projects in its development pipeline.
“Investissement Québec’s acquisition of Focus Graphite’s stake in the Kwyjibo project opens the door to creating business opportunities in the global rare earths market while maintaining Québec ownership of the project.”
Investissement Québec president and CEO Guy LeBlanc added that this financing initiative supported the government strategy of developing the territory where the project is located as well as the critical and strategic mineral sector.