Jourdan Resources Inc. [JOR-TSXV, JORF-OTCQB-2JR1-FRA] shares were active Monday after the company announced details of an earn in agreement and joint venture deal with Sayona Mining Ltd. [SYA-ASX, SYAXF-OTCQB] subsidiary North American Lithium Inc. in relation to Jourdan’s Vallee lithium project, which is located north of Val d’Or, Quebec.
Jourdan is aiming to become the next lithium producer in Quebec. The company’s properties are located primarily in the spodumene-bearing pegmatites of the La Corne Batholith, around North American Lithium’s (NAL) Quebec Lithium Mine.
Australia-listed Sayona has already established a lithium hub in Quebec and says it is advancing towards recommencement of production at NAL in the first quarter of 2023.
Under the agreement, NAL can earn a 51% stake in 28 claims located within the Vallee project, which includes pegmatite targets located close to and along strike from NAL’s orebody. NAL can earn a 50% interest by spending $10 million within two years. It can increase its stake to 51% by completing a feasibility study and arranging funding for the construction of a mine at Vallee.
Sayona subsidiary, Sayona Quebec, is acquiring 27 million common shares of Jourdan (representing a 9.9% interest) at $0.0556 per share, generating gross proceeds of $1.5 million.
Upon closing, which is expected to occur within two business days, Sayona will have the right to nominate one director to the company’s board.
Jourdan shares were active on the news, rising 5.3% or $0.005 to 10 cents on volume of 1.16 million. The shares are currently trading in a 52-week range of 10 cents and $0.035
News of the deal comes after Jourdan recently published the first assays results of its winter 2022 drilling campaign at its Vallee Project, which covers 48 claims over 1,997 hectares, closely neighbouring the North American Lithium mine tenure with 20 leases located within 500 metres of the mine tenure boundary. Results are from a 3,629-metre program completed in May, 2022.
The program was intended to follow up on the results of a bulk sample collected in 2018 and the fence line drilled in 2011 and 2021 along the western side of the Vallee property, which borders the North American Lithium mine.
The company said all 18 holes of its 2022 winter drilling campaign intersected the new spodumene-bearing pegmatite swarm on its Vallee property at a previously underexplored eastern extension, which had not been exposed by the North American Lithium mine to the west of Vallee.
In connection with the agreement, Jourdan has transferred 20 claims outright to Sayona to provide for potential future infrastructure expansion at the NAL mine and its processing facility.
Through the earn-in and joint venture arrangement, Jourdan and Sayona will work in tandem to advance the Vallee Lithium project as well as the region itself, including an extensive drill and exploration program for the Vallee Project.
Jourdan also said it intends to expand exploration throughout its three projects, including Vallee, Baillarge lithium-moly and Preissac.