Patriot will make $4.6m worth of cash payments and shares to Midex. Credit: barnabasvormwald from Pixabay.

Patriot Lithium has signed a binding term sheet to earn 100% of the lithium rights on Midex’s Berens Project in Ontario, Canada, from Midex Resources.

In exchange, Patriot will make $4.6m (A$7.14m) worth of cash payments and shares to Midex over a period of three years.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

As per the binding term sheet, Patriot will make an advance payment of $200,000 to Midex.

Midex will then grant a 60-day exclusivity period to Patriot for the completion of due diligence on the Berens project.

During this period, the parties will also negotiate a definitive agreement for the earn-in option agreement, which provides for $1.6m of cash payments on the signing of the agreement.

See Also:

Furthermore, the agreement will also provide for $3m in additional payments in cash and/or shares.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In a press statement, Midex said: “The issue of consideration shares is subject to Midex’s ownership in Patriot not exceeding 19.9% at any time. The earn-in agreement will include standstill restrictions on Midex and its affiliates.”

Midex is expected to retain the exploration and development right to gold/base metal minerals on the Berens project.

Upon completion of the earn-in option, Midex will retain a 2% net smelter return royalty on the lithium minerals mined from certain parts of the project.

Midex president and CEO David Jamieson said: “We are pleased to have entered into this transaction with Patriot, which provides for significant upfront and ongoing value for Midex shareholders.

“Midex will be able to access funding for both the Crescent Lake project and our ongoing exploration plan in the region as a result of the provisions of this earn-in agreement and the associated earn-in payments. We see tremendous upside and believe our Crescent Lake project can quickly grow to become a significant permitted lithium project in the area.”