(TheNewswire)
OTTAWA, ONTARIO – TheNewswire - October 17, 2022 - Stria Lithium Inc. (TSXV:SRA) (“ Stria ” or the“ Company ”) is pleased toannounce the execution of a definitive agreement (the “ Definitive Agreement ”) with Cygnus GoldLimited (ASX: CY5) (“ Cygnus ”) following the execution of a binding term sheetbetween the parties dated July 26, 2022. Pursuant to the DefinitiveAgreement, Cygnus has been granted the sole and exclusive option (the“Option”) to acquire up to a 70 % undivided interest in Stria’sPontax-Lithium property (the “Property”) under a two-stage optionfor total cash payments of $6 million and exploration expenditurecommitments totalling $10 million (the “ Transaction ”). Following theexercise of the Option, the parties will form a joint venture (the“ Joint Venture ”) with eachof 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 untilCygnus delivers a feasibility study on the property.
In consideration for the Option, Cygnus paid a cash consideration ofCAD$1 million and subscribed for 1,400,000 common shares of theCompany a price of CAD$0.25 per common share, for aggregate grossproceeds of CAD$350,000. The shares issued to Cygnus were issuedpursuant to Canadian prospectus exemptions and are subject to astatutory four month and one day hold period.
The transactions contemplated herein remain subject to certainconditions including, but not limited to, the receipt of all necessaryregulatory and other approvals, including the acceptance by the TSX-V.
“Stria Lithium is extremely pleased to have finalized theirdefinitive agreement with Cygnus Gold and will now direct its effortsto assisting Cygnus execute on their aggressive development of thePontax lithium deposit,” said Dean Hanisch Chief Executive Officerof Stria Lithium. “This was an important milestone to complete aswinter is rapidly approaching and these conditions are ideal forexecuting drill programs in the region.”
The terms of the two-stage option can be summarized asfollows:
1 st option to acquire a 51% undividedinterest (“ First Option ”)
Under the First Option, Cygnus is required to incurexploration expenditures on the Property in the amount of $4 millionover a period of 18 months. Following completion of suchexpenditures, in order to complete the First Option, Cygnus shall payStria a cash amount of $2 million.
2 nd option to acquire an additional 19%interest (“ Second Option ”)
Under the Second Option, conditional upon the exerciseof the First Option, Cygnus shall incur additional explorationexpenditures in the amount of $6 million over a period of 30 monthsfrom the date of exercise of the First Option. Following completion ofsuch expenditures, in order to complete the Second Option, Cygnusshall pay Stria an additional cash amount of $3 million. Upon theexercise of the Second Option, Cygnus shall have acquired a 70%undivided interest in the Property.
In the event Cygnus elects not to proceed with, orotherwise fails to exercise the Second Option, the parties will formthe Joint Venture with Cygnus automatically transfering a 2% undividedback to Stria for a nominal consideration. Each of Cygnus and Striashall thereafter hold an undivided Joint Venture interest of 49 % and51 % respectively, with Stria becoming operator of the Joint Venture.
About Stria Lithium Inc.
Stria Lithium is a Canadian junior mineral explorationcompany with an expanding technology focus and has a 100% interest inthe Pontax spodumene lithium project in Northern Québec.
Lithium is a critical metal in the universal fightagainst global warming. It is a core component of Lithium-ionbatteries used for powering electric vehicles and for industrial scaleenergy storage.
For more information about Stria Lithium and the PontaxLithium project, please visit https://strialithium.com .
For more information on Stria LithiumInc., please contact:
Dean Hanisch
CEO Stria Lithium
613 612 6060
Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in
the policies of the TSX VentureExchange) accepts responsibility for the accuracy or adequacy
of this release.
Cautionary Note RegardingForward-Looking Information
This news release contains "forward-lookinginformation" within the meaning of the applicable Canadiansecurities legislation that is based on expectations, estimates,projections and interpretations as at the date of this news release. The information in this news release about the closing of theTransaction and the Offering; the approval of the TSXV relating to theTransaction and the Offering; and any other information herein that isnot a historical fact may be "forward-lookinginformation".
Any statement that involves discussions with respect topredictions, expectations, interpretations, beliefs, plans,projections, objectives, assumptions, future events or performance(often but not always using phrases such as "expects", or"does not expect", "is expected","interpreted", "management's view","anticipates" or "does not anticipate","plans", "budget", "scheduled","forecasts", "estimates", "believes" or"intends" or variations of such words and phrases or statingthat certain actions, events or results "may" or"could", "would", "might" or"will" be taken to occur or be achieved) are not statementsof historical fact and may be forward-looking information and areintended to identify forward-looking information. This forward-lookinginformation is based on reasonable assumptions and estimates ofmanagement of Stria at the time such assumptions and estimates weremade, and involves known and unknown risks, uncertainties and other factors which may cause the actualresults, performance or achievements of Stria to be materiallydifferent from any future results, performance or achievementsexpressed or implied by such forward-looking information.
Such factors include, but are not limited to, Stria’sability to complete the Transaction and Offering; delays in obtainingor failures to obtain required governmental, shareholder,environmental or other project approvals; uncertainties relating tothe availability and costs of financing needed in the future; changesin equity markets; inflation; fluctuations in commodity prices; delaysin the development of projects; other risks involved in the mineralexploration and development industry; and those risks set out inStria’s public documents filed on SEDAR (www.sedar.com) underStria's issuer profile.
Although Stria believes that the assumptions andfactors used in preparing the forward-looking information in this newsrelease are reasonable, undue reliance should not be placed on suchinformation, which only applies as of the date of this news release,and no assurance can be given that such events will occur in thedisclosed timeframes or at all. Stria disclaims any intention orobligation to update or revise any forward-looking information,whether as a result of new information, future events or otherwise,other than as required by law.
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