SYDNEY, AUSTRALIA: Emerging lithium producer Sayona Mining Limited (ASX:SYA) is increasing its northern lithium hub in Québec, following an settlement with Troilus Gold Corp. (TSX:TLG) regarding a significant exploration package located close to the Moblan Lithium Project (SYA 60%; SOQUEM 40%).
Under the agreement, Sayona Mining’s Canadian subsidiary Sayona Inc. will purchase a 100% curiosity in 1,824 claims covering 985 sq. kilometres, located adjoining to the Moblan project (covering 4.3 sq km) and extending over a main a half of the Frotêt‐Evans Greenstone Belt.
The claims to be acquired haven’t been extensively explored for lithium and offer potential for eastwards extensions to the Moblan mineralisation, in addition to regional targets within the rising lithium district.
Sayona is paying C$40 million worth of SYA inventory as consideration for the claims to be acquired. Concurrently with the claims acquisition, Sayona has agreed to subscribe for roughly C$4.8 million worth of common shares of Troilus on a non‐brokered private placement basis, bringing Sayona’s funding in Troilus to roughly 9.26%.
Troilus will additionally obtain a 2% net smelter return royalty (NSR) on all mineral merchandise from the acquired claims.
Sayona’s Managing Director, Brett Lynch said the acquisition provided the potential for a main useful resource boost to the Company’s rising northern lithium hub.
“This is an funding in Sayona’s future manufacturing by buying nearly 1,000 sq. kilometres of potential lithium acreage, greater than 200 times the size of our present Moblan project,” Mr Lynch said.
“The lithium market wants large tonnages for lengthy periods and we’re excited by the potential to expand our lithium resources in northern Québec.
“Added to our southern Abitibi hub centred on North American Lithium, Sayona is quickly advancing the main lithium useful resource base in North America, in preparation for our transfer downstream into lithium carbonate and hydroxide production.”
In October 2022, Sayona introduced the launch of a pre‐feasibility study (PFS) regarding the event of a lithium mine and concentrator at Moblan. The PFS is due for completion by May 2023 and can be adopted by a definitive feasibility study, anticipated by the finish of September 2023.
Drilling is currently underway at Moblan, with earlier outcomes together with a brand new southern lithium pegmatite zone. Sayona is planning a brand new winter drilling campaign, with outcomes from the present marketing campaign anticipated by year‐end.
Sayona’s transfer to expand its northern hub follows the recent announcement of a strategic acquisition and earn‐in by Sayona subsidiary North American Lithium (NAL) at Jourdan Resources’ Vallée Lithium Project. Located adjoining to the NAL operation, Vallée provides the chance for a swift potential increase to the NAL useful resource base and future mine manufacturing capacity.