Canadian explorer Midland Exploration has executed a new option agreement totalling up to C$65.5-million with Rio Tinto Exploration Canada (RTEC) for several projects in the James Bay region showing lithium potential.
The agreement, announced by the TSX-V-listed junior on Wednesday, encompasses ten properties, totalling 2 009 claims and covering a surface area of more than 1 000 km2.
These properties include Mythril-Corvette, Mythril-East, Mythril-Chisaayuu, Galinee, Moria, Shire, Komo, Warp, Sulu, and Picard.
The signing of the option agreement follows the recent identification by Midland of several new exploration targets for lithium on the properties, including three new projects that were recently acquired by map designation as a result of Midland’s in-house analysis of lake bottom sediment data.
Under the agreement, RTEC may acquire an initial 50% interest in the properties over a five-year period by making a cash payment of C$500 000 within 45 days of the lifting of wildfire restrictions in Quebec such that RTEC may start operations on the properties. RTEC must also incur exploration expenditures totalling C$14.5-million and make a further five yearly payments of C$100 000.
After acquiring an initial 50% interest, RTEC will have the option to increase its interest in the properties to 70% over a period of five years following the exercise of the first option, by spending another C$50-million on exploration.
RTEC will act as project operator under the option agreement.
Midland and RTEC intend to prepare a summer exploration programme in the coming weeks that will initially include airborne surveys and prospecting, all subject to the easing of operational restrictions related to the ongoing wildfires in Quebec, environmental stewardship, safety of employees and contractors, and local First Nations and other communities all being high priorities.
Jakob Stausholm, the CEO of RTEC parent company Rio Tinto, has said that the diversified miner is very interested in finding lithium projects to add to its portfolio.