Cygnus Metals Extends Its Stake in Pontax Lithium Project
TORONTO and PERTH, Western Australia – Cygnus Metals Limited (ASX: CY5, TSXV: CYG, OTCQB: CYGGF) is excited to share that it has reached an agreement for a two-year extension of its earn-in relationship with Stria Lithium Inc for the Pontax Lithium Project located in Quebec.
Details of the Extension
In July 2023, Cygnus successfully earned a 51% stake in the Pontax project after injecting C$4 million in project investments and issuing shares to Stria. This marked a significant milestone in the collaboration between Cygnus and Stria.
Now, with this extension, Cygnus has an additional 24 months to meet the requirements of the second phase of its earn-in agreement, aiming to acquire an extra 19% stake in Pontax, which will increase its total ownership to 70%.
Exploration Commitment and Investment
The extension enables Cygnus to allocate further resources towards exploration, with plans to invest an additional C$2 million in project development and provide a cash payment of C$3 million to Stria. This strategic investment reinforces Cygnus’s commitment to the Pontax Lithium Project and heightens the potential for fruitful exploration outcomes.
Issuance of Shares to Stria
As part of the agreement, and pending approval from TSXV, Cygnus will issue 300,000 shares to Stria. These shares will be priced at A$0.105 each, in accordance with the market conditions on April 1, 2025. A vital aspect of this transaction is that the shares will come with a voluntary escrow period lasting for 12 months post-issue.
About Cygnus Metals Limited
Cygnus Metals Limited (ASX: CY5, TSXV: CYG, OTCQB: CYGGF) operates in the critical minerals sector, with diverse projects across Quebec and Western Australia. The company is keen on driving forward its ambitious plans for the Chibougamau Copper-Gold Project in Quebec, focusing on aggressive exploration strategies to enhance resource accumulation.
In addition to its copper-gold interests, Cygnus is strategically positioned in the lithium sector with significant qualities and growth potential in the renowned James Bay area of Quebec. Furthermore, the company is involved in rare earth elements (REE) and base metal projects in Western Australia. With a robust team experienced in transforming exploration projects into profitable enterprises, Cygnus aims to enhance shareholder value consistently.
Frequently Asked Questions
What is the Pontax Lithium Project?
The Pontax Lithium Project is a mining exploration initiative located in Quebec, focusing on lithium resources, integral to battery production.
What are the key terms of the agreement between Cygnus and Stria?
Cygnus has negotiated a two-year extension to its earn-in agreement, allowing it to increase its stake in Pontax from 51% to 70% by investing an additional C$2 million and making a cash payment of C$3 million.
How does this extension impact Cygnus Metals Limited’s strategy?
This extension aligns with Cygnus’s strategy of enhancing its resource base and expanding its operations in the lithium sector, showcasing its commitment to exploration and development.
What investment is Cygnus making in Pontax?
Cygnus is committing an additional C$2 million to exploration activities at Pontax, in addition to a C$3 million cash payment to Stria as part of the agreement.
Who can I contact for more information about Cygnus Metals Limited?
For inquiries, you can contact David Southam, Executive Chairman, at +61 8 6118 1627 or via email at info@cygnusmetals.com.
