Saga Metals Partners with Rio Tinto for Legacy Lithium Project
Saga Metals has executed an option to joint venture agreement with Rio Tinto Exploration Canada (RTEC) for its Legacy Lithium Project in the James Bay Lithium District. Under this agreement, RTEC has the option to acquire an initial 51% interest in the Legacy Lithium Project over four years, subject to meeting specific conditions.
To exercise this option, RTEC must make cash payments totaling CAD 410,190 (USD 307,642.50) by August 11 and incur exploration expenditures totaling CAD 9,571,100 (USD 7,178,325.00). This includes a firm commitment to spend at least CAD 1,709,125 (USD 1,281,843.75) in the first 20 months. Additionally, RTEC must pay CAD 273,460 (USD 205,095.00) in cash to Saga Metals and another CAD 225,000 (USD 168,750.00) to cover underlying claim acquisition costs.
Upon acquiring the initial 51% interest, RTEC will have the option to increase its stake to 75% over an additional five-year period by spending an extra CAD 34,182,500 (USD 25,636,875.00) on exploration. During both the first and second option periods, RTEC will act as the project operator.
A technical committee comprising members from both Saga and RTEC will oversee and prepare the exploration programs. The Legacy Lithium Project spans 663 claims over 34,243 hectares, featuring 100 kilometers of striking paragneiss.
