In a recent turn of events unfolding in the volatile rare earth metals industry, Matamec Exploration Inc., has announced that it has put forth its purchase agreement to Sayona Quebec Inc., a fully owned subsidiary of Sayona Mining Corp., of Australia. Reportedly, the purchase agreement includes Matamec’s grant for 65 mineral claims of its 12,000-hectares Tansim property.
Elaborating further on the agreement details, reports reveal that the Matamec’s offer comes with a validity of two years from the date of signing. In the first 12-months, Sayona has an option to acquire 50% interest in 65 mineral claims by spending CAD 103587. 12 to cover the renewal fees for Matamec’s claims, or spend CAD 63587.12 on exploration before the end of January, 2018 on 50 of those claims and pay the renewal fees for the remaining claims. In addition, Sayona is required to pay CAD 100,000 in cash to Matamec and spend CAD 200,000 in exploration work on the claims.
Industry experts speculate Matamec’s deal to be a part of process to get the best value for each property under the company’s control, and in turn create more value for the stakeholders. On the other hand, for Sayona this is an exciting deal, as it would have another mine in close proximity of its flagship Authier project and would further pave the way for the company to expand its lithium portfolio in Canada rare earths metals market.
With this project, cite analysts, Lithium exploration in Canada is sure to pick up steam as new age minerals continue to grow with Sayona’s aggressive encroachment in rare earth metals industry.
Meanwhile, the staged nature of this deal enables Sayona to acquire additional 50% interest to hold the entire 100% of the claims during the second year by paying CAD 250 000 in cash to Matamec and CAD 350 000 as a part of exploration & development on the claims and pay, plus a 2% Net Smelter Return (NSR) royalty on the mineral produced from those 65 claims.