Canadian mineral exploration company Azimut Exploration has co-signed two joint venture (JV) option agreements Rio Tinto‘s subsidiary Rio Tinto Exploration Canada for its two lithium properties in Canada.
The Corvet and Kaanaayaa lithium properties are located in the Eeyou Istchee James Bay region of Quebec.
The agreements allow Rio Tinto to initially earn a 50% interest in each of the properties over a four-year period by funding $7 million ($5.26 million) for exploration and paying $850,000 for each of the properties.
Rio Tinto can earn an additional 20% interest in each of the properties over a five-year period by initiating an additional $50 million of work per property.
Azimut will act as operator of the properties in the first option phase, while Rio Tinto will act as operator in the second phase.
In addition, Azimut has the right to finance production by taking out a loan from Rio Tinto. The former will grant Rio Tinto an additional 5% interest in the properties, whose aggregate interest in the properties will be 75%.
The first year exploration program is aimed at evaluating and testing the lithium potential of the Corvet and Kaanaayaa properties.
In a press release, Azimut said, “The properties demonstrate significant lithium exploration potential, supported by regional geoscientific data and their strategic location relative to a large emerging lithium district.”
The Corvet Property consists of 877 claims covering 423 km². It spans a large tectonic boundary.
The Kaanaayaa property covers an area of 216 km² and consists of 421 claims. It hosts multiple granitic intrusions surrounded by paragneiss and metavolcanoes, including ultramafic rocks.
The agreements are subject to regulatory approval by the TSX Venture Exchange.
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