Canada-based mineral exploration companies Elcora Advanced Materials and Gold Lion Resources have signed a Letter of Intent (LOI) to start work on a manganese mining license in Morocco.
Under the terms of the LoI, Gold Lion will pay $75,000 in cash and issue its common shares worth $250,000, in exchange for a 25% stake in the property from Elcora.
In addition, the company can acquire another 15% stake in the property by paying $125,000 cash, and a further 10% stake for an additional cash payment of $50,000.
Closing of the transaction is subject to certain customary closing conditions, including the signing of a definitive agreement and final acceptance from the regulatory authorities.
Elcora CEO Troy Grant said: “Elcora is pleased to join forces with Gold Lion to develop the Manganese site. Manganese is a critical metal used in the EV battery industry and is an important piece of our strategy to supply the increasing global demand for both Manganese and Vanadium.
“We look forward to updating investors on our achievements and execution of our strategy to become a significant battery metals supplier.”
Ermazon, a wholly owned subsidiary of Elcora, will hold the manganese research mining license in Morocco.
It has filed application for the exploitation license of the manganese concession, which will support its strategy to supply battery and electric vehicles (EV) end-users.
Gold Lion will acquire 50% interest in the property and Elcora will use the proceeds to begin ore production on the Manganese concession, after securing the exploitation license.
The two companies have agreed to share the profits generated from the production accordingly.
The manganese concession is a past-producing French mine, where Elcora will leverage on-site infrastructure, facilities and up to 600 tonnes of raw ore ready for processing.
Furthermore, the development and exploration work at the project will determine whether an open pit or underground mining operation will be used in the future.
