Sayona Mining Limited is extending its northern lithium hub in Québec, following a deal with Troilus Gold Corp. for a substantial exploration package near the Moblan Lithium Project.
In a statement, Sayona Mining said its Canadian affiliate Sayona Inc. would purchase a 100 per cent interest in 1,824 claims totalling 985 square kilometres, located near the Moblan project and across a significant portion of the Frotêt-Evans Greenstone Belt. Sayona Mining added that the claims being bought have not been substantially explored for lithium, however, they do have the potential for eastward expansions to the Moblan mineralisation and regional prospects in the growing lithium district.
Sayona is paying C$40 million in SYA stock in exchange for the claims to be purchased. Concurrent with the claims acquisition, Sayona has committed to subscribe for about C$4.8 million worth of Troilus common shares in a non-brokered private placement, raising Sayona’s stake in Troilus to approximately 9.26 per cent. Troilus will also receive a 2 per cent NSR on all mineral products derived from the acquired claims.
Sayona Managing Director Brett Lynch said the acquisition offered the possibility of a significant resource boost for the company’s developing northern lithium hub.
“This is an investment in Sayona’s future production by acquiring nearly 1,000 square kilometres of prospective lithium acreage, more than 200 times the size of our current Moblan project,” Lynch said.
Lynch stated that the lithium market requires significant tonnages for a very long time, expressing the company’s enthusiasm about the possibility of increasing its lithium resources in northern Quebec.
“Added to our southern Abitibi hub centred on North American Lithium, Sayona is rapidly advancing the leading lithium resource base in North America, in preparation for our move downstream into lithium carbonate and hydroxide production,” Lynch added.
Sayona announced the beginning of a pre-feasibility study (PFS) for the construction of a lithium mine and concentrator in Moblan in October 2022. The PFS is scheduled to be finished by May 2023, and then a final feasibility study will be conducted, with results anticipated by the end of September 2023.
Drilling is now taking place in Moblan, with prior results including the discovery of a new southern lithium pegmatite zone. Sayona is preparing for a fresh winter drilling campaign, with findings from the present campaign expected before the end of the year.
Following the recent announcement of a strategic acquisition and earn-in by Sayona subsidiary North American Lithium (NAL) at Jourdan Resources‘ Vallée Lithium Project, Sayona has decided to expand its northern hub. The option for a quick potential growth in the NAL resource base and future mine production capacity is presented by Vallée, which is close to the NAL operation.
The following crucial clauses are part of the agreement with Troilus:
- Acquisition of 100 per cent of 1,824 claims from Troilus in exchange for C$40 million in SYA stock (approximately 184 million SYA shares). Based on the 20-day VWAP previous to 16 November 2022, Troilus will get the specified number of SYA shares.
- Additionally, Sayona paid C$10 million for 9.26 per cent of the shares of Troilus common stock through the subscription of 10.5 million shares at C$0.49 per share.
- On all mineral products from the purchased claims, Troilus will get a 2 per cent NSR. 30 days before the start of commercial production on any of the acquired claims, Sayona has the option to repurchase the NSR for C$20 million in cash.
- As long as Sayona owns at least 5 per cent of Troilus, it is permitted to participate in future financings to preserve its pro rata ownership of its shares.
- Mutual commitment from both parties to work together on drilling, infrastructure, electricity, geotechnical, environmental, permitting, and connections with communities and First Nations.
The Troilus claims encompass 985 square kilometres of the eastern Frotêt Evans Greenstone Belt and border the Moblan deposit to the east and north-east. A suite of late-stage intrusive monzogranite is present in the regional greenstone strata, indicating a regional possibility for lithium pegmatite mineralisation. Troilus’ substantial geochemical and geological information over the claims to be acquired will significantly benefit expediting exploration in the new package.
The Moblan project encompasses approximately 433 ha (4.3 sq km) and consists of 20 claims held in a joint venture with SOQUEM Inc, a subsidiary of Investissement Québec. Sayona expanded its burgeoning northern hub in January 2022 with the acquisition of 121 new claims (Lac Albert Project), located west of the Moblan project and spanning more than 6,500 ha.
Moblan is located in northern Quebec’s EeyouIstchee James Bay region, a proven lithium mining province with established lithium resources such as Nemaska Lithium’s Whabouchi mine. It offers access to low-cost, ecologically beneficial hydropower and is well-served by vital infrastructure and transportation.
