Elcora’s wholly owned subsidiary Ermazon SARL owns the manganese research mining licence.
Under the LOI , Gold Lion will make a $75,000 cash payment and issue its common shares equal to $250,000 to acquire a 25% stake in the property from Elcora.
Gold Lion will make an additional $125,000 cash payment to acquire a 15% stake and a further $50,000 in cash for a 10% stake in the property.
The transaction is contingent on customary closing conditions, which include the signing of a definitive agreement between the two parties and acceptance from the related regulatory authorities.
Elcora CEO Troy Grant said: “Elcora is pleased to join forces 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 both Manganese and Vanadium . We look forward to updating investors on our achievements and execution of our strategy to become a significant battery metals supplier.”
Elcora plans to use the proceeds from the sale transaction to start production on the manganese concession.
The firm said the development and exploration project would determine the feasibility of an open-pit or underground mining operation at the manganese site.
Ermazon has sought the exploitation licence of the manganese concession, which is expected to strengthen its strategy to supply the end users of battery and electric vehicles (EV).