Quebec Canada – 10%, option to increase to 50%
The Royal project is located 30km north of Val d’Or in Quebec, Canada and comprises 5 contiguous claims, approximately 286 hectares in area. The claims are prospective for lepidolite and are situated only 4km from the Quebec Lithium Mine.
The Royal project is part of an unincorporated joint venture with St-Georges Platinum and Base Metals (CSE:SX) (“St-Georges”). The joint venture has an option to acquire 100% of the project based on a combination of exploration expenditure and milestone payments, all of which St-Georges is liable for. Platypus will retain a 10% free carried interest through to a final investment decision in the joint venture. In addition, Platypus will have an option to increase its interest in the joint venture to 50% by paying St-Georges a multiple of its incurred expenditure to date at the time it decides to increase its interest, as shown below
- Exploration expenditure year 1 – 1.5x multiple
- Exploration expenditure thereafter – 2.0x multiple
Figure: Project Location