Bacanora Minerals Ltd. (TSXV:BCN) staked new lithium targets surrounding the Company’s La Ventana lithium deposit and the El Sauz and Fleur concessions that are under joint venture with Rare Earth Minerals Plc (REM). Bacanora Minerals also signed a Memorandum of Understanding (MOU) with REM that allows REM to participate in the exploration and development of Megalit, as well as the Company’s Buenavista and San Gabriel
As quoted in the press release:
The MOU between the Company and REM establishing Joint Venture #2 allows:
- REM to acquire an initial 10% interest in Megalit, Buenavista and San Gabriel by paying Bacanora $US250,000, and spending $US500,000 on exploration over a 12 month period;
- After the first 12 month period, REM then has the right, at its election, to increase that interest to 30% by paying to Bacanora another $US500,000 and spending a further US$1,000,000 on drilling and exploration over a further 12 month period; and
- REM has also been granted an exclusive right of first refusal to further negotiate terms to increase its interest in Megalit, Buenavista and San Gabriel to a maximum of 49.9%, provided that the terms comply with REM’s stated investment strategy. The right of first refusal will expire on December 1, 2015.
Bacanora Minerals Ltd. President, Martin Vidal, said:
We are very pleased to be able to expand our strategic land holdings to cover additional lithium showings as well as to expand our working relationship with REM in order to advance exploration and development on the newly acquired Megalit concession.