Midland Options to Rio Tinto an Interest in Several Highly Prospective Lithium Properties in James Bay, Quebec for Up to $65.5 Million in Expenditures and Other Payments
June 14 2023 - 10:00AM
Midland Exploration Inc. (“Midland”)
(TSX-V: MD) is pleased to announce the execution of a
new option agreement on June 13, 2023 (the “
Option
Agreement”) with Rio Tinto Exploration Canada Inc.
(
“RTEC”) for several projects in the James Bay
region showing strong lithium potential. The Option Agreement
encompasses ten (10) properties totalling 2,009 claims and covering
a surface area of more than 1,000 square kilometres. These
properties include: Mythril-Corvette, Mythril-East,
Mythril-Chisaayuu, Galinee, Moria, Shire, Komo, Warp, Sulu, and
Picard (the
“Properties”).
The signing of the Option Agreement follows the
recent identification by Midland of several new exploration targets
for lithium on the Properties, including three (3) new projects
that were recently acquired by map designation as a result of
Midland’s in-house analysis of lake bottom sediment data (see press
release by Midland, dated March 6, 2023, and posted on SEDAR, click
here).
Under the Option Agreement, RTEC may acquire an
initial 50% interest (the “First Option”) in the
Properties over a period of five (5) years, subject to the
following conditions:
- Cash payments totalling $500,000
within 45 days of the lifting of wildfire restrictions in Quebec
such that RTEC may commence operations on the Properties.
- Exploration expenditures totalling
$14,500,000, including a firm commitment to spend not less than
$2,000,000 in the first 18 months following the lifting of wildfire
restrictions in Quebec such that RTEC may commence operations on
the Properties.
- $500,000 in
cash payments ($100,000 per year).
After acquiring an initial 50% interest, RTEC
will have the option to increase its interest in the Properties to
70% (the “Second Option”) over a period of five
years following the exercise of the First Option, subject to the
following conditions:
- Exploration expenditures totalling
an additional $50,000,000 (for a total of $64,500,000 under the
Option Agreement).
RTEC will act as project operator under the
Option Agreement during the First Option period and the Second
Option period.
Midland and RTEC intend to prepare a summer
exploration program in the coming weeks that will initially include
airborne surveys and prospecting, all subject to the easing of
operational restrictions related to the on-going wildfires in
Quebec, environmental stewardship, safety of employees and
contractors, and local First Nations and other communities all
being high priorities.
The Properties are currently wholly owned by
Midland and are favourably located near significant lithium
deposits such as Corvette (Patriot Battery Metals Inc.), Moblan
(Sayona-Soquem inc.), Adina (Winsome Resources), Whabouchi (Nemaska
Lithium) and James Bay Lithium (Allkem Limited), all located within
the Eeyou Istchee James Bay region, Quebec.
Cautionary statement:
Mineralization occurring at the Corvette,
Whabouchi, Moblan and James Bay lithium deposits is not necessarily
indicative of mineralization that may be identified on properties
held by Midland described in this press release.
About Midland
Midland targets the excellent mineral potential
of Quebec to make the discovery of new world-class deposits of gold
and critical metals. Midland is proud to count on reputable
partners such as Rio Tinto Exploration Canada Inc., BHP Canada
Inc., Barrick Gold Corp., Wallbridge Mining Company Ltd, Probe Gold
Inc., Agnico Eagle Mines Limited, Osisko Development Corp., SOQUEM
Inc., Brunswick Exploration Inc., Nunavik Mineral Exploration Fund,
and Abcourt Mines Inc. Midland prefers to work in partnership and
intends to quickly conclude additional agreements in regard to
newly acquired properties. Management is currently reviewing other
opportunities and projects to build up Midland’s portfolio and
generate shareholder value.
This press release was prepared by certified
geologist Mario Masson P.Geo., VP Exploration for Midland and
Qualified Person as defined by NI 43-101.
For further information, please consult
Midland’s website or contact:
Gino Roger, President and Chief Executive OfficerTel.:
450 420-5977Fax: 450 420-5978Email:
info@midlandexploration.comWebsite:
https://www.midlandexploration.com/
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This press release may contain forward-looking
statements that are subject to known and unknown risks and
uncertainties that could cause actual results to vary materially
from targeted results. Such risks and uncertainties include those
described in Midland’s periodic reports including the annual report
or in the filings made by Midland from time to time with securities
regulatory authorities.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/123bdca0-76ab-438a-a101-2854cb09163a
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