Under the inked deal between the two Canadian firms, Gold Lion picked a 25% stake in the manganese licence by paying $75,000 in cash and issuing five million of its common shares worth $250,000, at $0.05 apiece.
Elcora unit Ermazon SARL currently owns the Moroccan mining licence for manganese research. Upon securing the exploitation licence, Elcora plans to start producing ore on the concession using the proceeds from the deal.
Utilizing on-site infrastructure
“Elcora is pleased to work 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 manganese, vanadium, lead and copper. We are looking forward to beginning manganese production during Q4 2022,” said Elcora CEO Troy Grant.
Gold Lion holds an option to acquire another 15% stake in the property by paying $125,000 in cash within five business days of receiving notice of the exploitation licence grant. Furthermore, Gold Lion can purchase a 10% interest by paying $50,000 within 15 business days of receiving notice of expected production start on the licence. The manganese concession is a former producing French mine that operated for decades. Elcora plans to utilise on-site infrastructure, facilities and up to 600t of raw ore ready for processing.
Elcora said the development and exploration project will determine if an open-pit or underground mining operation at the concession will be used in the future. Last month, the two companies entered a letter of intent to start work on the Moroccan manganese mining licence.