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Bacanora Minerals Ltd. (TSXV:BCN) and Rare Earth Minerals Plc finalized a lithium farm-in deal that grants Rare Earth Minerals certain rights to participate in the drilling and project evaluation of the El Sauz and Fleur lithium concessions in northern Mexico.
As quoted in the press release:
Highlights of the Agreement:
- REM will earn an initial 10% interest in Bacanora’s 100% owned subsidiary that will hold the Concessions by making an upfront cash payment of $250,000 (which has been received by Bacanora) and providing another $500,000 to the Company in two instalments, to be used for exploration and drilling on the Concessions and delivered in full no later than 4 weeks after drilling starts.
- Following completion of the above, REM shall have an option to increase its interest in the Company’s subsidiary to 30% by providing written notice of exercise, together with delivery of an additional cash payment of $500,000, on or before August 11, 2013, and thereafter depositing a further $1,000,000 within 6 months of exercise of this option, which funds shall be used for drilling and exploration expenditures on the Concessions.
- Following completion of the prior two stages, REM will thereafter have an exclusive option to negotiate terms to increase interest in the subsidiary holding the Concessions from 30% to a maximum of 49.9%.
Click here to read the Bacanora Minerals Ltd. (TSXV:BCN) press release
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