Mining News
Midland options several lithium properties in Quebec to Rio Tinto for up to $65.5M in expenditures and other payments
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(Kitco News) - Midland Exploration (TSX-V: MD) today announced the execution of a new option agreement on June 13, 2023 with Rio Tinto Exploration Canada (Rio Tinto) for several projects in the James Bay region showing strong lithium potential.
The company said that the option agreement encompasses ten properties totalling 2,009 claims and covering a surface area of more than 1,000 square kilometers, including Mythril-Corvette, Mythril-East, Mythril-Chisaayuu, Galinee, Moria, Shire, Komo, Warp, Sulu, and Picard properties.
The signing of the option agreement follows the recent identification by Midland of several new exploration targets for lithium on the properties, including three new projects that were recently acquired by map designation as a result of Midland’s in-house analysis of lake bottom sediment data.
Under the option agreement, Rio Tinto may acquire an initial 50% interest in the properties over a period of five years, subject to cash payments totalling $500,000 within 45 days of the lifting of wildfire restrictions in Quebec, exploration expenditures totalling $14,500,000, and $500,000 in cash payments ($100,000 per year).
After acquiring an initial 50% interest, Rio Tinto will have the option to increase its interest in the properties to 70% over a period of five years following the exercise of the first option, subject to exploration expenditures totalling an additional $50,000,000 (for a total of $64,500,000 under the option agreement).
Rio Tinto will act as project operator under the option agreement during the first option period and the second option period.
Midland and Rio Tinto intend to prepare a summer exploration program in the coming weeks that will initially include airborne surveys and prospecting.
Midland targets the mineral potential of Quebec to make the discovery of new world-class deposits of gold and critical metals. The company said it prefers to work in partnership and intends to quickly conclude additional agreements in regard to newly acquired properties.
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