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Stria Announces Option and Joint Venture with Cygnus Gold on Its Pontax-Lithium Property and Private Placement
OTTAWA, ON / ACCESSWIRE / July 28, 2022 / Stria Lithium Inc. (TSXV:SRA) ("Stria" or the"Comp...
About this update from Stria Lithium Inc.
[{"type":"text","content":"Stria Announces Option and Joint Venture with Cygnus Gold on Its Pontax-Lithium Property and Private PlacementOTTAWA, ON / ACCESSWIRE / July 28, 2022 / Stria Lithium Inc. (TSXV:SRA) (\"Stria\" or the\"Company\") is pleased to announce the execution of a binding term sheet (the \"Term Sheet\") with Cygnus Gold Limited (ASX: CY5) (\"Cygnus\") pursuant to which Cygnus has been granted the sole and exclusive option (the \"Option\") to acquire up to a 70 % undivided interest in Stria's Pontax-Lithium property (the \"Property\") under a two-stage option for total cash payments of $6 million and exploration expenditure commitments totalling $10 million (the \"Transaction\").Following the exercise of the Option, the parties will form a joint venture (the \"Joint Venture\") with each of Cygnus and Stria holding an undivided interest of 70 % and 30 % respectively, with Cygnus acting as operator of the Joint Venture. Stria's interest in the Joint Venture will be free carried until Cygnus delivers a feasibility study on the property. In consideration for the Option, Cygnus will pay Stria a cash consideration of $1 million within 10 business days following the receipt by Stria of all the required corporate and regulatory approvals to complete the Transaction. Furthermore, as a condition precedent to the Transaction, Cygnus has accepted to participate in Stria's concurrent Offering (as defined below) in the amount of $350,000. Cygnus' participation in the Offering is conditional upon Stria first obtaining all required regulatory and shareholder approvals in connection with the Transaction (as further detailed below).The terms of the two-stage option can be summarized as follows:1st option to acquire a 51% undivided interest (\"First Option\") Under the First Option, Cygnus is required to incur exploration expenditures on the Property in the amount of $4 million over a period of 18 months. Following completion of such expenditures, in order to complete the First Option, Cygnus shall pay Stria a cash amount of $2 million.2nd option to acquire an additional 19% interest (\"Second Option\") Under the Second Option, conditional upon the exercise of the First Option, Cygnus shall incur additional exploration expenditures in the amount of $6 million over a period of 30 months from the date of exercise of the First Option. Following completion of suc...