Troilus Gold Corp. has completed a deal with Sayona Mining Limited, selling 1,824 claims covering about 985 square kilometers for C$40 million. The transferred claims, part of an asset sale agreement, include the Tortigny deposit but exclude the main mineral corridor crucial to Troilus' August 2020 Preliminary Economic Assessment.

As part of the transaction, Troilus received 184,331,797 ordinary shares of Sayona, priced at C$0.217 each, and secured a 2% net smelter returns royalty on all minerals produced from these claims. Sayona also has the option to buy back this royalty for C$20 million. Additionally, Sayona committed to a C$4.8 million private placement in Troilus, purchasing 9,883,163 common shares at C$0.49 each, increasing its stake to approximately 9.26%.

This strategic divestment allows Troilus to focus on its core assets while maintaining potential future gains from the transferred claims. The deal is set to enhance collaboration and synergy between the two companies, particularly in the development projects within the Frotêt Evans Greenstone Belt.

The transaction involved Cormark Securities Inc. as financial advisor and Cassels Brock & Blackwell LLP as legal counsel for Troilus. McCarthy Tétrault LLP provided legal assistance to Sayona. The sale and private placement are subject to final approvals, with closure anticipated shortly following the announcement.