Mosaic Minerals has signed an option agreement with Castlebar Capital, granting Castlebar the option to acquire up to a 100% stake in the Lichen Project in Canada.

The agreement outlines a structured path for Castlebar to earn this interest through cash payments, share issuance and property development expenditures.

Under the agreed terms, Castlebar can earn a 50% interest by fulfilling various financial and operational milestones. These include total cash payments of $205,000 (C$281,839), the issuance of 1.35 million shares to Mosaic and incurring at least $750,000 in qualifying expenditures on the property.

Following the exercise of the first option, Castlebar has a 45-day window to decide whether to form a joint venture with Mosaic or to acquire an additional 50% interest.

To do so, Castlebar must pay a further $150,000 in cash and issue an additional 1–500,000 shares to Mosaic.

If Castlebar exercises the additional option, it will secure a 100% undivided interest in the Lichen Project, subject to a 2% net smelter royalty retained by Mosaic.

Castlebar retains the right to accelerate the cash payments, share issuances or work expenditures as stipulated in the agreement.

Comprising 282 claims over 15,622 hectares, the Lichen Project is strategically located near significant gold projects in the Chibougamau mining camp.

The geology of the property is underlain by volcanic rocks and intruded by intermediate composition plutons and stocks, similar to nearby gold-rich volcanic belts.

The Lichen Project's geological setting aligns with the characteristics of other gold-bearing areas in the region, such as Bachelor Lake and Osisko-Windfall.