Eureka Lithium and Medaro Mining have signed a letter of intent (LoI), whereby Eureka plans to acquire a 100% stake in mineral claims of Medaro’s Lac La Motte project in Canada.
Located in the mining area of Abitibi, Quebec, around 40km from the city of Val-d'Or, the Lac La Motte project has 13 contiguous claims covering approximately 586.05ha.
Surface sampling work concluded in June 2022 showed historical lithium occurrences. Holes were drilled to find targets for current exploratory drilling.
Samples at the site returned values of lithium oxide (Li2O) in the range of less than 0.02% Li2O to 2.58% Li2O.
Under the LoI, Eureka will have an exclusive dealing period of 30 days, during which it can conduct due diligence to reach a definitive agreement.
As per the definitive agreement, Eureka will gain an option to acquire a 100% undivided interest in and to the property.
Under the agreement, Eureka will issue 200,000 of its shares to Medaro on the date of signing the definitive agreement.
It will have to incur exploration expenses on the property totalling $500,000 by 12 months from the date of the definitive agreement.
It will also have to pay $45,000 on behalf of Medaro to the underlying owner of the property by 6 May 2024.
Eureka will be required to issue an additional 300,000 of its shares by the 12-month period and incur additional exploration expenses of $500,000 by 24 months from the date of agreement.
It will also have to pay $50,000 to the underlying owner, on behalf of Medaro, by 6 May 2025 and issue the seller a further one million of its shares by 24 months from the date of signing the definitive agreement.
Eureka Lithium president and CEO Jeffrey Wilson said: “We are pleased to enter into this letter of intent. We remain committed to our highly prospective assets in the Nunavik region of Quebec; however, this new acquisition balances out the company’s project portfolio with a lithium project that can be drilled during the winter months, has good access and infrastructure, and is road accessible, is drill ready and drill permitted, and is situated in a mining-friendly and active lithium district.
“Prior work at Lac La Motte includes significant pegmatite showings and reported spodumene, as well as encouraging prior drill intercepts including Drill Hole MD22-08, which Intersected two pegmatites: Upper 1.33 m wide with 1.49% Li2O at 36m depth; and lower 0.93m wide at 0.88% Li2O at 41.2m depth.
“Upon satisfaction of the due diligence period and completion of the definitive agreement, Eureka’s will be positioned with data, field crews and access to a drill to immediately commence work.”
