Rio Tinto, SAGA Metals sign option to JV agreement for lithium asset

Saga Metals announced the execution of an option to joint venture agreement on June 27, 2024 with Rio Tinto Exploration Canada for its Legacy Lithium Project in the renowned James Bay Lithium District. The Legacy Lithium Project is located in Quebec’s Eeyou Istchee James Bay region. RTEC is a Canadian subsidiary of the Rio Tinto Group. Under the Option Agreement, RTEC has the option to acquire an initial 51% interest in the Legacy Lithium Project over a period of four years, which it may exercise if it satisfies the following conditions: Cash payments totaling C$410,190 on or before August 11, 2024. Exploration expenditures totaling C$9,571,100, including a firm commitment to spend not less than C$1,709,125 in the first 20 months of the effective date of the Option Agreement. C$273,460 in cash payments to Saga and additional payments of C$225,000 in aggregate, being equal in amount to the underlying claim acquisition amounts owed by Saga to the vendors from whom it acquired the Legacy Lithium Project. After earning the right to acquire an initial 51% interest, RTEC will have the option to increase its interest in the Legacy Lithium Project to 75% over a period of five years following the four year First Option term, by incurring exploration expenditures totaling an additional C$34,182,500 in exploration expenditures. RTEC will act as project operator under the Option Agreement during the First Option period and the Second Option period. Saga and RTEC will form a technical committee to review and prepare the exploration programs. The Legacy Lithium Project, optioned by RTEC, contains 663 claims spanning 34,243 hectares hosting 100km of striking paragneiss.