Q2 Metals (TSX-V:QTWO) has exercised its options to acquire three groups of mineral claims in the Eeyou Istchee James Bay region of Québec, Canada.
Known collectively as the Cisco property, the options cover the Broadback, Cisco, and Ouagama claim blocks, which span a total of 11,374 hectares.
Under the terms of the option agreements, Q2 will pay a total of C$2.4 million ($2.63 million) and issue 60 million shares to the vendors. The company has also committed to spending C$12 million on exploration activities over the next four years.
Once Q2 has satisfied the payments and expenditures, the company will earn 100% of the Cisco property. Q2 has made the first installment of the cash and consideration.
The vendor will retain a 4% gross metals returns royalty (GMR) on the Cisco claims, of which up to 3% — or three-quarters — can be purchased by the company.
Previous exploration work at the Cisco property identified a mineralised zone, and the company’s re-assay of six drillholes confirmed a discovery drill result of 115.4m @ 1.4% lithium oxide.
Q2 Metals is a Canadian mineral explorer focused on unlocking its portfolio of lithium projects in Québec, Canada.
Write to Aaliyah Rogan at Mining.com.au
Images: Q2 Metals
