Ophir Gold, a Canadian mineral explorer, has secured approval from the TSX Venture Exchange for an option to acquire an undivided 70% stake in the Pilipas lithium property from Azimut Exploration.

Earlier this month, the two companies entered an option to a joint venture agreement for Azimut’s 100%-owned Pilipas property in the James Bay Region of Quebec, Canada.

The agreement includes a series of cash, share payments, and exploration expenditures to be met by Ophir to incrementally earn its interest in the property.

This includes spending C$4m ($3m) in exploration expenditures, issuing six million of its shares and paying C$100,000 ($75,692) in cash, over a three-year period.

Under the terms of the option agreement, Ophir can initially earn a 50% interest after completing its commitments in the second year and a 70% interest after fulfilling its commitments in the third year.

After Ophir earns a 70% interest, the two companies will form a joint venture.

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In the event of Ophir earning only a 50% interest, the joint venture will be equally split.

If the stake held by either party falls below 10%, it will be converted into a 2% net smelter royalty (NSR) on the property. No finder’s fees are associated with this transaction, as the parties are dealing at arm’s length.

Located along the Billy-Diamond Highway, the Pilipas property covers an area of around 70.7km², comprising 135 claims.

It is claimed to be sitting next to significant projects and is underlain by the Lower Eastmain greenstone belt.

The property has shown potential for lithium-caesium-tantalum (LCT) pegmatites and gold-copper systems. It is also located close to the Ninaaskumuwin spodumene outcrop discovery, hosting several untested pegmatites.

Azimut claims that Pilipas’ geological setting aligns with its InSight prospect at Munischiwan property with up to 100.5g/t of gold (Au), 435.0g/t of silver (Ag), 156.0g/t tellurium (Te) and 1.67% of copper (Cu).

Ophir will serve as the operator in the option phase.

In July this year, Azimut entered two joint venture option agreements with Rio Tinto Exploration Canada for its Corvet and Kaanaayaa lithium properties in Canada.