Visible Gold Mines has agreed to sell its MegaLi lithium project to PMET Resources as Visible Gold refocuses its operations on gold exploration and development.
PMET will acquire a 100% interest in Visible Gold’s 78 exploration rights comprising MegaLi, alongside 41 exploration rights owned by Noranda Royalties in Québec’s James Bay region.
Visible Gold will receive $201,000 in cash plus a 1.34% net smelter returns royalty covering the properties.
PMET will have the option to buy back 50% of Visible Gold’s royalty for $670,000.
After exercising that option, PMET could purchase the remaining 50% for another $2.01 million.
Noranda will receive a separate 0.66% net smelter returns royalty, subject to buyback rights totaling $1.32 million.
MegaLi sits directly adjacent to PMET’s flagship lithium asset, making the property strategically complementary to PMET’s existing exploration footprint.
The transaction is subject to regulatory approvals, including approval from the TSX Venture Exchange, and is expected to close within approximately 10 days.
KEY QUOTE:
“The sale of our MegaLi Project to PMET, a dedicated lithium explorer, represents the best outcome for the Company, as the project is directly adjacent to PMET’s flagship lithium asset. This transaction also provides Visible Gold with a royalty interest should the Properties advance to production.”
Jean-Marc Lacoste, President And CEO Of Visible Gold Mines
