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Sirios Resources Signs Agreement with Cygnus Gold for Sale of the Pontax Property
MONTREAL, Feb. 16, 2023 (GLOBE NEWSWIRE) -- The management of Sirios Resources Inc. (TSX-V: SOI) (“Sirios or the Company”) is pleased to announce that it has si
About this update from Sirios Resources, Inc.
[{"type":"text","content":" MONTREAL, Feb. 16, 2023 (GLOBE NEWSWIRE) -- The management of Sirios Resources Inc. (TSX-V: SOI) (“Sirios or the Company”) is pleased to announce that it has signed a sale and purchase agreement (the “SPA”) with the Australian company Cygnus Gold Ltd. (“Cygnus”) and its wholly owned Canadian subsidiary Avenir Metals (Canada) Limited (“Avenir”) for the sale of the Pontax property, located in Eeyou Istchee James Bay, Quebec, in consideration of a $1.2M cash payment upon signing and the issuance of 750,000 shares of Cygnus. Further payments and share issuances of up to $3 million and one million additional shares, respectively, are also anticipated in the event of a future delineation of a lithium resource on the property as described below. Dominique Doucet, President of Sirios stated: \"We are very pleased with this transaction involving the sale of the Pontax property, which will provide Sirios with additional necessary funds, without diluting its capital stock, to pursue the development of Sirios' major projects, including Cheechoo and Aquilon. In addition, the Cygnus shares held by Sirios will allow it to benefit from the successes achieved in the search for lithium by this dynamic Australian company.\" Summary of the Sale Transaction Under the terms of the SPA, Cygnus will pay Sirios $1.2 million (CAD) upon signing and issue 750,000 shares, half of which will have a one-year hold period. If a resource of 4 million metric tonnes at a minimum grade of 0.8% Li2O is delineated on the property, Cygnus will be required to make a further cash payment of $1M and issue 500,000 shares. Finally, an additional payment of $2M will be required, in addition to the issuance of 500,000 shares, in the event that the resource on Pontax (validated under the JORC code) reaches 6 million metric tonnes at a minimum grade of 0.8% Li2O. Sirios will hold a 1.5% net smelter return royalty with a buy-back clause by Cygnus for 0.75% in consideration of a $600,000 payment. Completion of the sale of the Pontax property is conditional to the satisfaction of mutually agreeable ancillary agreements on or before the expiry of a delay of 90 days after the signature of the SPA. About Sirios Sirios Resources Inc. is a Canadian-based mining exploration company focused on developing its portfolio of high-potential gold properties in the Eeyou Istchee James Ba...