MGX Minerals has signed a joint venture (JV) deal with Belmont Resources to acquire up to 50% interest in the Kibby Basin lithium brine property, located around 50km north of Clayton Valley in Nevada, US.
Under the agreement, MGX is required to fund up to C$300,000 towards exploration expenditures for drilling activities in the Kibby Basin in exchange for the acquisition of an initial 25% interest in the property.
The target area of the drilling programme is a large anomaly discovered by a magnetotelluric survey in January this year.
MGX has an option to earn a further 25% interest in the property by making a payment of an additional C$300,000 in relation to exploration expenditures for drilling at the project.
Once the option is exercised, MGX will become a 50% owner in the JV, with the company offering its rapid lithium extraction technology to the project.
Furthermore, the company will assume operatorship of the project.
The deal also involves MGX acquiring four million units of Belmont at a price of $0.05 per unit through a non-brokered private placement, with each unit comprising one common share of Belmont and one transferable share purchase warrant.
According to MGX, the JV will also cover further exploration in the Kibby Basin, which includes additional exploration drilling, well testing operations, and extraction plant installation and operation.
The property is spread over an area of 2,560 acres located in Esmeralda County, Nevada.