Troilus Gold Corp. (“Troilus” or the “Company”, TSX: TLG; OTCQX: CHXMF; FSE: CM5R) announces that it has entered into an agreement with Comet Lithium Corporation (“Comet Lithium”) for the divestiture of its non-core properties, the Mercator, Monarch and Elmer East projects located in the James Bay Region (“The Transaction”). The Company would also like to announce the resignation of Dr. Eric Lamontagne and the appointment of Mr. François Biron, former General Manager of the Troilus Mine, to the Board of Directors (the “Board”).
The sale of the non-core claims to Comet Lithium supports the company’s goal to focus solely on the development of its flagship Troilus Gold-Copper project located in North Central Quebec while maintaining exposure to the exploration upside of these properties.
Details of the Transaction:
Pursuant to an agreement dated July 12, 2024, Comet Lithium has agreed to acquire the Mercator, Monarch and the East Elmer projects from Troilus in exchange for 1,500,000 Consideration Shares to Troilus at an issue price of C$0.315 per Share (the “Issue Price”). The transaction will result in Troilus owning approximately 6% of Comet Lithium. In addition, Troilus has been granted a 2% Net Smelter Royalty (“NSR”) on each of the Mercator, Monarch and Elmer East projects. Comet Lithium will have the right to repurchase 1% for $3 million on each of the projects respectively.
In addition, Troilus has been granted a 24-month participation right, allowing the Company to participate in any equity financing to maintain its equity percentage in Comet Lithium, subject to certain conditions, including Troilus Gold holding 750,000 common shares of Comet Lithium at the time of the equity financing.
Justin Reid, CEO of Troilus Gold Corp., commented, “The sale of these non-core properties to Comet Lithium is a strategic step in our commitment to concentrate resources and efforts on the Troilus Gold-Copper Project as we advance towards production. We are confident in Comet Lithium’s capabilities to develop these assets and are keen to see their progress.”
Overview of Transferred Properties
The three transferred properties total 100 mining claims covering 52.22 km2. Details of each group of properties are as follows:
Mercator Project:
- 14.91 km² land package (29 mining claims)
- Located approximately 40 km southeast of Comet Lithium’s Liberty property and Windsome Resources’ Adina project.
The Mercator Project is predominantly covered by sediments with identified and mapped pegmatite dykes, in a favorable geological environment for LCT pegmatites
Monarch Project:
- 20.61km² land package (39 mining claims)
- Located approximately 60km NE of the Whabouchi mine operated by Arcadium Lithium
- Proximal and along trend to Cygnus Metals Limited’s Auclair Project, including the Auriga, Lyra and Pegasus discoveries. The Pegasus discovery hosts large pegmatites measuring up to 75m by 50m and 65m by 30m wide (see Cygnus Metals press releases dated November 28, 2023, January 10, 2024, and May 17, 2024)
- Troilus previously completed geochemistry and prospection at Monarch as part of its summer fieldwork programs in 2022 and 2023 as well as a geophysical survey in early 2024, which returned strong soil anomalies on trend with the Auclair pegmatite discoveries.
- The previous owner of the claims, Virginia Mines, conducted geophysical magnetic surveys and drilling campaigns from 1996 to 2010 focused on gold, leading to the discovery of the Golden Butterfly showing in the center of the property.
Elmer East Project:
- 16.7 km² land package (32 mining claims)
- Located approximately 20 km south of Allkem Limited’s James Bay Lithium Project (4.3 Mt @ 1.30% Li2O Indicated, and 55.9 Mt @ 1.29% Li2O Inferred) and north of Azimut Exploration Inc.’s Wapatik Project, which has eight multi-kilometer target areas with multiple outcropping targets likely corresponding to pegmatites.
- Potential for nickel-copper and gold mineralization shown in previous exploration programs (see Azimut Exploration press releases of December 7, 2021, June 29, October 3, and October 27, 2022, April 24, and September 19, 2023).
Board of Directors Update
The Company announces that Dr. Eric Lamontagne has resigned from the Board for personal reasons, effective immediately. Mr. François Biron, a seasoned mining engineer with over 40 years of experience who previously served as General Manager of the Troilus Mine, has been appointed to the Board in his place.
Dr. Eric Lamontagne commented, “I am honoured to have worked with Troilus through the recent completion of its Feasibility Study; Troilus is an excellent project which the entire team should be proud of.”
Diane Lai, Chairperson of the Troilus Board commented, “The Board extends its gratitude to Eric for his contributions to the Company and wishes him all the best in his future endeavors. We are pleased to welcome Mr. François Biron to our Board, whose extensive operational experience and innovative mining practices will support our development goals. He has a strong local involvement in the Quebec mining industry, having served as the President of the Board of l’Institut national des mines de Quebec (National Institute of Mines of Quebec) for over a decade. Notably, he previously served as the General Manager of the Troilus Mine when it was in operation and this firsthand knowledge and history with the former mine will be invaluable as we advance towards a mine restart, ensuring we leverage past successes to drive our future growth efficiently and responsibly.”
Mr. Biron is a senior professional mining engineer with over 40 years of experience in the mining industry. He specializes in mining operations and has held several senior site-based roles with leading international mining companies, along with executive management positions. Notably, Mr. Biron served as the General Manager of the Troilus Mine for Inmet Mining Corporation from 2005 to 2010 and as the President of the Board of Directors of l’Institut national des mines de Quebec from 2010 to 2021. He has been instrumental in managing major open pit mines, consistently applying the highest standards to achieve corporate objectives. Additionally, Mr. Biron advocates for the social acceptability of mining projects, integrating the latest automation technologies to enhance mining processes and emphasizing the importance of public consultations with local communities.
