Medaro Enters into Option Agreement to Acquire 100% of Darlin Li-Be Property in Quebec

Rhea-AI Summary

Medaro Mining Corp. (CSE: MEDA) (OTC: MEDAF) has announced an option agreement to acquire a 100% interest in the Darlin Li-Be property in Quebec. This property covers 2,133 hectares in a prominent lithium pegmatite area. The acquisition involves cash payments of $160,000, issuing 350,000 common shares, and committing $800,000 to exploration. Additionally, a royalty agreement includes a potential $1 million bonus upon meeting certain resource criteria. CEO Michael Mulberry highlighted the strategic importance of this acquisition for expanding their portfolio in Northwest Quebec.

Positive

• Strategic acquisition of the Darlin Li-Be property, enhancing portfolio in lithium exploration.
• Potential to establish a significant mineral resource, leading to a $1 million bonus upon compliance.
• Investment of $800,000 in exploration expenditures indicates commitment to development.

Negative

• The $1.5 million purchase price for royalty could impact long-term financial flexibility.
• Exploration risks associated with developing the new property may affect future cash flows.

VANCOUVER, British Columbia, July 21, 2022 (GLOBE NEWSWIRE) -- Medaro Mining Corp. (CSE: MEDA) (OTC: MEDAF) (FWB: 1ZY) (“Medaro” or the “Company”), a multi-faceted venture aimed at developing innovative spodumene processing technology concurrent with its lithium focused exploration in Canada, is pleased to announce that it has entered into an option agreement (the “Agreement”) with Afzaal Pirzada and Geomap Exploration Inc. (together, the “Optionor”) to acquire a 100% interest in and to the Darlin Li-Be property in northwestern Quebec, Canada (the “Darlin Property”). The Darlin Property is composed of 37 mineral claims covering approximately 2,133 hectares located in a very active hard rock lithium pegmatite area in the prolific mining area of Abitibi, Quebec, 80 kilometers southwest of the city of Val-d’Or.

Pursuant to the Agreement, the Company may acquire a 100% interest in and to the Darlin Property by (i) making aggregate cash payments of $160,000; (ii) issuing an aggregate of 350,000 common shares of the Company; and (iii) incurring an aggregate of $800,000 in exploration expenditures on the Darlin Property. The share issuances, cash payments and exploration commitments gradually increase over the term of the Agreement. Upon exercise of the Option by the Company, the Optionor will retain a 2.0% net smelter returns royalty on the Darlin Property, 1.0% of which may be purchased by Medaro for $1,500,000. Further, in the event a 43-101 compliant mineral resource of 1 megatonne or more is established with respect to the Darlin Property, the Company has agreed to make a one-time payment of $1,000,000 (the “Bonus”) to the Optionor, which may be satisfied through payment of cash or issuance of shares of the Company, at the Company’s discretion.

Michael Mulberry, CEO of Medaro, stated “Medaro is excited to be adding to our portfolio of projects in Northwest Quebec, as well as expanding our working relationship with Geomap Explorations.”

ON BEHALF OF THE BOARD OF DIRECTORS
Michael R. Mulberry
CEO and Director

About Medaro Mining Corp. (CSE: MEDA) (OTC: MEDAF) (FWB: 1ZY)
Medaro Mining is a lithium exploration company based in Vancouver, BC, which holds options on the Superb Lake lithium property located in Thunder Bay, Ontario, the Cyr South lithium property located in James Bay, Quebec and the Yurchison uranium property in Northern Saskatchewan. The Company is also involved in the development and commercialization of a new process to extract lithium from spodumene concentrate through its Global Lithium Extraction Technologies joint venture. Find out more at: https://medaromining.com/.

For detailed information, investors are invited to review the Company’s filings available at www.sedar.com.

FOR FURTHER INFORMATION CONTACT:
Investor Relations
Email: info@medaromining.com
Phone: 604-800-0203
Web: https://medaromining.com/

Forward-Looking Statements
This news release contains certain forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, including statements respecting the Agreement, the cash payments, the issuance of shares, the exploration expenditure, and the Bonus are "forward-looking statements." These forward-looking statements reflect the expectations or beliefs of management of the Company based on information currently available to it. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by the Company with securities regulatory authorities, which may cause actual outcomes to differ materially from those discussed in the forward-looking statements. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

FAQ

What is the purpose of Medaro Mining's acquisition of the Darlin Li-Be property?

The acquisition aims to enhance Medaro's exploration portfolio in a prominent lithium area, supporting its focus on developing innovative spodumene processing technology.

What are the financial terms of the option agreement for the Darlin Property?

Medaro Mining will make cash payments of $160,000, issue 350,000 common shares, and incur $800,000 in exploration expenditures.

What is the expected impact of the Darlin Li-Be property acquisition on Medaro Mining?

The acquisition is anticipated to increase Medaro's resource base and may lead to significant future revenue growth through the establishment of a compliant mineral resource.

When is the additional payment to the optionor triggered in the agreement?

A one-time payment of $1,000,000 will be made if a 43-101 compliant mineral resource of 1 megatonne or more is established.

How does the acquisition align with Medaro Mining's strategic goals?

The acquisition aligns with Medaro’s strategy to expand its lithium exploration efforts and develop innovative extraction technologies.