Sirios Resources, a Canadian exploration company, has entered into separate agreements with Bullrun Capital and Hertz Lithium to sell three of its properties in Eeyou Istchee James Bay in the Canadian province of Quebec.
Sirios agreed to sell its Li-52 and Niska properties to Bullrun Capital, a private investment company.
As per the agreement, Bullrun will have an option to acquire a 100% stake in each of the lithium/gold properties after spending C$5m on mineral exploration, which equates to C$2.25m per property.
It will also need to pay C$200,000 in cash or in shares along with C$100,000 in cash on closing to Sirios.
The company will also receive C$250,000 either in cash or in shares after drilling results indicate concentration of 1% lithium oxide (Li2O) or more over a minimum depth of 25m.
The company will also retain a 1.5% net smelter return (NSR) royalty on Niska and a 1.75% NSR on Li-52.
It has also kept the right to buy back 100% of the mining rights on non-critical minerals that include, among others, gold, silver and PGE (platinum group elements), and tungsten.
Under such a condition, it will pay back a maximum of C$2m per property to Bullrun.
The second agreement is related to the Maskwa property in Eeyou Istchee James Bay.
As per this agreement, Hertz Lithium will have a right to acquire a 100% stake in the lithium/gold property after it invests C$2.55m.
Hertz will need to spend C$2.55m on mineral exploration at the property and will have to pay C$100,000 plus C$100,000 in cash or in shares along with a cash payment of C$100,000 when the deal is closed.
Sirios will also receive C$250,000 after drill results come up with 1% Li2O concentration over 25m of minimum depth.
Furthermore, Sirios will retain a 1.5% NSR royalty and has kept an option to buy back mining rights for critical metals and PGE and tungsten, by paying Hertz a maximum of C$2m for its exploration expenses.
