Medaro Mining Corp. and Eureka Lithium Corp. sign LOI to option Lac La Motte Properties near Val D'Or
Medaro Mining Corp. has entered into a letter of intent with respect to an option for Eureka to acquire from Medaro Mining Corp. a 100% undivided interest in and to the mineral claims comprising the Optionor's Lac La Motte Project in the mining area of Abitibi, Quebec ("Property"), subject to a 1% net smelter returns royalty in favor of the Underlying Owner (as defined below) ("NSR").
Medaro's CEO Michael Mulberry stated, "We are excited to welcome a partner of the stature of Eureka Lithium Corp. to further develop the Lac La Motte project. I know they are committed and eager to develop the property further. Brining on a solid partner like Eureka is another way for Medaro to further its commitment of developing highly prospective Lithium properties in Quebec, and advance our stable of projects."
Under the Letter of Intent, Eureka will have an exclusive dealing period of 30 days during which it may conduct due diligence with a view to negotiating and entering into a definitive agreement ("Definitive Agreement") with the Optionor pursuant to which it would acquire the Option to acquire a 100% undivided interest in and to the Property, subject to the NSR, by satisfying each of the following conditions:
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Issuing to the Optionor 200,000 common shares of Eureka ("Common Shares") on the effective date of the Definitive Agreement ("Effective Date");
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Incurring exploration expenses in respect of the Property totalling $500,000 by the date that is 12 months from the Effective Date;
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Paying, on behalf of the Optionor, $45,000 in cash to the underlying owner ("Underlying Owner") of the Property by May 6, 2024;
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Issuing to the Optionor 300,000 Common Shares by the date that is 12 months from the Effective Date;
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Incurring additional exploration expenses in respect of the Property totalling $500,000 by the date that is 24 months from the Effective Date;
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Paying, on behalf of the Optionor, $50,000 in cash to the Underlying Owner by May 6, 2025; and
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Issuing to the Optionor 1,000,000 Common Shares by the date that is 24 months from the Effective Date.
The issuance of any Common Shares will be made pursuant to applicable exemptions from the registration and prospectus requirements under Canadian securities and corporate laws, and such Common Shares will be subject to a hold period of four (4) months and one (1) day from the date of issuance.
The Letter of Intent is non-binding, except for provisions relating to the exclusive period of dealing and the right of Eureka to conduct a due diligence review, as well as certain other customary provisions.
About Lac La Motte
The Lac La Motte Property is located in the prolific mining area of Abitibi, Quebec, 40 kilometers Northwest of the city of Val-d'Or. There are several active lithium prospects/mines at various stages of exploration and development located approximately 5 km to 20 km from the Property.
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