Saga Metals announces JV with Rio Tinto on Canada lithium project
Published by Jane Bentham,
Editorial Assistant
Global Mining Review,
Saga Metals Corp., a North American exploration company focused on critical mineral discovery in Canada, has announced the execution of an option to joint venture agreement with Rio Tinto Exploration Canada Inc. (RTEC) for its Legacy Lithium Project in the renowned James Bay Lithium District.
The Legacy Lithium Project is located in Quebec’s Eeyou Istchee James Bay region.
RTEC is a Canadian subsidiary of the Rio Tinto Group.
Under the Option Agreement, RTEC has the option to acquire an initial 51% interest in the Legacy Lithium Project over a period of four years, which it may exercise if it satisfies the following conditions:
- Cash payments totaling CAN$410 190 on or before 11 August 2024.
- Exploration expenditures totaling CAN$9 571 100, including a firm commitment to spend not less than CAN$1 709 125 in the first 20 months of the effective date of the Option Agreement.
- CAN$273 460 in cash payments to Saga (CAN$68 365 per year) and additional payments of CAN$225 000 in aggregate, being equal in amount to the underlying claim acquisition amounts owed by Saga to the vendors from whom it acquired the Legacy Lithium Project.
“This marks a significant milestone in the company’s development and creates a non-dilutive pathway for the necessary capital to properly explore our Legacy Lithium Project over the coming years,” stated Mike Stier, CEO and Director of Saga Metals Corp. “We look forward to partnering with Rio Tinto and hope to have a long and fruitful relationship for many years to come.”
Read the article online at: https://www.globalminingreview.com/mining/05072024/saga-metals-announces-jv-with-rio-tinto-on-canada-lithium-project/
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