92 Resources Corp (CVE:NTY) (OTCMKTS:RGDCF) announced Thursday that joint venture partner Far Resources Ltd is ending its remaining earn-in option on the company’s Hidden Lake property in Northwest Territories.
As part of the agreement conditions signed in January 2018, Far Resources will maintain a 60% interest in the project, while 92 Resources will continue to hold 40%.
A joint venture between the two companies will be formed for future exploration work and Far Resources will continue as the project operator, with the responsibility of funding initial expenditures totaling $1 million.
Hidden Lake’s 2018 drill program returned numerous high-grade lithium intercepts, including 1.6% lithium oxide over 9.2 metres.
"Although we would have preferred for Far Resources to continue through Year's 2, 3, and 4 of the option, the company has received considerable benefit from the work completed under the Year 1 terms,” said Adrian Lamoureux, president and CEO of Hidden Lake.
Lamoureux said that 92 Resources is further positioned long-term for the lithium space as the market rebalances and rebounds. “The company is also insulated from the first $1,000,000 in exploration expenditures under the joint jenture, in which Far Resources remains obligated to incur,” he said in a statement.
Shares of 92 Resources eased 18.2% in Canada at C$0.05 and traded at US$0.03 on OTC markets.
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