PERTH (miningweekly.com) – Junior Midas Minerals has struck an agreement with TSX-V-listed Gold Terra Resources Corporation to hunt for lithium at Gold Terra’s Yellowknife gold project, in Canada.
Under the Stage 1 earn-in agreement, Midas has the option of earning a 51% interest in the critical mineral rights at the Yellowknife project by paying Gold Terra C$1.15-million over five stages, issuing the company with 2.2-million shares within ten days and spending C$5-million on exploration and development out to the end of September 2026.
Midas could earn a further 29% interest in the project by spending a further C$5-million on exploration or development, and making a C$500 000 payment to Gold Terra before the end of September 2028.
On the satisfaction of the Stage 2 earn-in, Midas would hold an 80% interest in the critical mineral rights as well as an interest in the mining claims.
Gold Terra would be free carried until the completion of a critical minerals feasibility study at Yellowknife, and Midas would grant Gold Terra a 1.5% gross revenue royalty on critical minerals produced from the Quyta-Bell and Quyta-Bell East blocks. The company would have the right to purchase half of this royalty for C$5-million.
“Having executed formal documentation with Gold Terra, we’re excited to commence exploration at Yellowknife, a large project prospective for lithium/cesium/tantalum pegmatites in a region known to contain numerous spodumene pegmatites. Using Gold Terra’s data to guide us, we believe we can quickly advance exploration targets and will provide further updates on our progress over the coming Northern summer months,” said Midas MD Mark Calderwood.
Midas’ technical team has started field exploration at the project with 100 samples collected and awaiting analysis, with further mapping and sampling planned.