- Tearlach Resources Limited (TEA) signed a $6.36 million option agreement to acquire six properties on the Corvette lithium trend in Quebec
- Tearlach may acquire a 100 per cent interest in each of the six properties from arm’s length vendors by making cash payments over a three-year period
- It also will issue a number of its common shares with milestone bonuses in the same timeframe
- The six properties are collectively known as the Shelby Project
- Tearlach Resources Limited (TEA) is up 1.74 per cent, trading at $2.34 per share as of 12:23 p.m. EST
Tearlach Resources Limited (TEA) signed a $220.1 million option agreement to acquire a 100 per cent interest in six properties in Quebec.
According to the option agreement, Tearlach may acquire a 100 per cent interest in each of the six properties within the Corvette lithium trend from arm’s length vendors by making cash payments and issuing a number of its common shares with milestone bonuses.
An initial 300,000 shares will be paid to the vendor as a one-time payment in addition to the payments listed below per property.
| Cash Payments | Value of shares to be Issued | Milestone | |
| $ | $ | $ | |
| Upon signing the Option Agreement | 545,454.54 | 545,454.54 | – |
| 1st Year Anniversary | 545,454.54 | 545,454.54 | – |
| 2nd Year Anniversary | 545,454.54 | 545,454.54 | – |
| 3rd Year Anniversary | 545,454.54 | 545,454.54 | – |
| Upon successful drilling result of 10 meters of 1% or greater Li2O over a 6-year period | – | – | 2,000,000 |
The vendors will retain a 3.00 per cent net smelter return royalty on the properties with a one-half of a percentage point buyback for $1 million.
The six properties are collectively known as the Shelby Project. The project is made up of the Patriot West, Patriot North, Patriot North Spodumene, Patriot North East, Patriot East, and Patriot South areas. The properties are within the La Grande Greenstone Belt and cover approximately 11,226 hectares.
The Shelby properties are adjacent to Patriot Battery Metals Inc.’s (PMET) Corvette Lithium Property and Winsome Resources Ltd.’s Cancet discovery drill hole.
The company stated that all the properties are under-explored and have been acquired on favourable terms with access to a unique pipeline of projects.
Tearlach Resources Limited (TEA) is up 1.74 per cent, trading at $2.34 per share as of 12:23 p.m. EST.