- Morella Corporation (1MC) executes a letter of intent (LOI) for an earn-in to the North Big Smoky brine and sediment lithium project in Nevada, USA
- The LOI will grant Morella a 60 per cent interest in Lithium Corporation’s North Big Smoky project, which consists of 178 claims
- Morella will pay Lithium Corp around $93,200 within five days of signing the LOI, during which time Morella will be granted a 60-day period to undertake due diligence and formal earn-in documentation
- Morella also holds the option to purchase the remaining interest in the project for exploration and assessments
- Morella is up 3.85 per cent, trading at 2.7 cents at 10:47 am AEST
Morella Corporation (1MC) has executed a letter of intent (LOI) for an earn-in to the North Big Smoky brine and sediment lithium project in Nevada, USA.
The LOI will grant Morella a 60 per cent interest in Lithium Corporation’s North Big Smoky project. The project area consists of 178 claims and covers 3400 acres.
Morella will pay Lithium Corp US$65,000 (A$93,200) within five days of signing the LOI, during which time Morella will be granted a 60-day period to undertake due diligence and formal earn-in documentation.
With a 60 per cent interest over a four-year period at the project in hand, Morella would be able to conduct exploration and incur expenditure relating to exploration and assessments.
Morella also holds the option to purchase a further 20 per cent interest in the project by paying Lithium Corporation a further US$750,000. The remaining 20 per cent interest can then be acquired through a final US$750,000.
In the event of a 100 per cent purchase of the project, a 2.5 per cent net smelter royalty will be executed with Lithium Corporation. Morella can then elect to purchase the rights to 50 per cent of the project for US$1 million.
“North Big Smoky is an early-stage project, and we intend to follow a similar path of evaluating and advancing the project as we have at Fish Lake Valley,” Morella CEO Alex Cheeseman said.
“Like Fish Lake Valley, this project is in an enviable, Tier 1 exploration and mining jurisdiction, with access to infrastructure, workforce and an ever-growing, downstream lithium market increasingly focused on localised supply.”
Morella was up 3.85 per cent, trading at 2.7 cents at 10:47 am AEST.