SYDNEY, AUSTRALIA: Emerging lithium producer Sayona Mining Limited (ASX:SYA) is expanding its northern lithium hub in Québec, following an agreement with Troilus Gold Corp. (TSX:TLG) concerning a significant exploration package located near the Moblan Lithium Project (SYA 60%; SOQUEM 40%).
Under the agreement, Sayona Mining’s Canadian subsidiary Sayona Inc. will acquire a 100% interest in 1,824 claims covering 985 square kilometres, located adjacent to the Moblan project (covering 4.3 sq km) and extending over a major part of the Frotêt‐Evans Greenstone Belt.
The claims to be acquired have not been extensively explored for lithium and offer potential for eastwards extensions to the Moblan mineralisation, as well as regional targets in the emerging lithium district.
Sayona is paying C$40 million worth of SYA stock as consideration for the claims to be acquired. Concurrently with the claims acquisition, Sayona has agreed to subscribe for approximately C$4.8 million worth of common shares of Troilus on a non‐brokered private placement basis, bringing Sayona’s investment in Troilus to approximately 9.26%.
Troilus will also receive a 2% net smelter return royalty (NSR) on all mineral products from the acquired claims.
Sayona’s Managing Director, Brett Lynch said the acquisition provided the potential for a major resource boost to the Company’s emerging 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,” Mr Lynch said.
“The lithium market needs large tonnages for long periods and we are excited by the potential to expand our lithium resources in northern Québec.
“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.”
In October 2022, Sayona announced the launch of a pre‐feasibility study (PFS) concerning the development of a lithium mine and concentrator at Moblan. The PFS is due for completion by May 2023 and will be followed by a definitive feasibility study, expected by the end of September 2023.
Drilling is currently underway at Moblan, with previous results including a new southern lithium pegmatite zone. Sayona is planning a new winter drilling campaign, with results from the current campaign expected by year‐end.
Sayona’s move to expand its northern hub follows the recent announcement of a strategic acquisition and earn‐in by Sayona subsidiary North American Lithium (NAL) at Jourdan Resources’ Vallée Lithium Project. Located adjacent to the NAL operation, Vallée provides the opportunity for a swift potential increase to the NAL resource base and future mine production capacity.