Azimut signs JV option deals with Rio Tinto for Canadian lithium properties

The lithium properties of Corvet and Kaanaayaa can be found in the Eeyou Istchee James Bay region of Quebec.

Azimut Exploration, a mineral exploration corporation based in Canada, has entered into partnerships with Rio Tinto Exploration Canada, a subsidiary of Rio Tinto, through the signing of two joint venture option agreements. These agreements pertain to Azimut Exploration's two Canadian lithium properties.

The Corvet and Kaanaayaa lithium properties can be found in the Eeyou Istchee James Bay area of Quebec.

Under the terms of the contracts, Rio Tinto has the opportunity to obtain a 50% share in all the properties within a span of four years. In return, they will provide financial backing of C$7m ($5.26m) for exploration activities and contribute C$850,000 for each individual property.

Rio Tinto can acquire an extra 20% ownership in each of the properties by investing an additional C$50m per property in work expenditures within a span of five years.

During the initial stage, Azimut will assume the role of property operator, and in the subsequent phase, Rio Tinto will take over as the operator.

In addition, Azimut will be eligible to receive financial support for production through a loan from Rio Tinto. Azimut will offer an extra 5% stake in the properties to Rio Tinto, increasing their overall ownership to 75%.

The inaugural discovery initiative is designed to evaluate and examine the lithium capability of the Corvet and Kaanaayaa properties.

According to a press release from Azimut, the properties show considerable promise for lithium exploration, as indicated by regional geological information and their advantageous positions in relation to a major upcoming lithium zone.

The Corvet Property consists of 877 claims that span across an expansive area of 423km². It is situated right on top of a significant tectonic boundary.

Spanning across a vast expanse of 216 square kilometers, the Kaanaayaa Property encompasses a total of 421 claims. Within its boundaries, one can find various granitic intrusions encircled by paragneiss and metavolcanics, which also include ultramafic rocks.

The agreements are contingent upon receiving regulatory approvals from the TSX Venture Exchange.