Sigma Lithium’s Grota do Cirilo lithium project in Brazil. Credit: Sigma Lithium
DeepRock Minerals (CSE: DEEP) has entered into an option agreement with two Brazilian companies to acquire a 100% interest in the Esperança lithium property, comprising about 2,970 hectares of mineral claims located in Brazil’s Minas Gerais state.
The property covers mapped metasediments of the Salinas formation, where Brazil’s only lithium producer CBL has been mining spodumene for almost 30 years. The same unit also hosts Sigma Lithium’s Grota do Cirilo, which is the the largest hard-rock lithium deposit in the Americas.
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As per the option agreement, DeepRock can acquire 100% ownership in the Esperança property over a three-term period through C$100,000 in total cash payments, the issuance of 200,000 common shares, and an accumulative expenditure of C$200,000 in exploration work. The previous owner will retain a 2% net smelter royalty.
Following the agreement, DeepRock intends to immediately start prospecting, sampling, detailed mapping and multispectral analysis of satellite data to identify potential exploration targets on the property.
In addition to Esperança, the company has three other projects under development: the Ralleau VMS project located in the Abitibi region of Quebec, the Golden Gate project in New Brunswick and the Zapozilor polymetallic project in Romania.
Shares of DeepRock Minerals surged 25% by 12:50 p.m. ET. The CSE-listed miner has a market value of C$4.5 million ($3.4 million).