en.Wedoany.com Reported - Eureka Metals (CSE:ERKA) has signed a definitive option agreement to acquire up to an 80% interest in the KM98 titanium project in Quebec, Canada, expanding the company's footprint in the Havre-Saint-Pierre region.

Located approximately 45 kilometers southwest of Eureka's flagship Tyee Titanium Project, the KM98 project sits within the same anorthosite complex as Rio Tinto's (ASX:RIO) Lac Tio mine, one of the world's largest hard-rock titanium deposits.

The project has received approval for trenching and diamond drilling and is directly accessible via the Romaine IV government service road. Historical exploration has outlined a regional-scale titanium-bearing magnetite-ilmenite oxide system extending approximately 5 kilometers. Previous exploration reports indicate outcrops containing 30% to 90% magnetite and ilmenite.

Laboratory-scale metallurgical testing using conventional magnetic and gravity separation techniques produced iron concentrates with iron grades up to 68.5%, accompanied by vanadium values. Test results also included titanium-rich ilmenite concentrates with titanium oxide grades up to 48.4%.

CEO Danny Matthews stated that the company aims to become one of Canada's leading titanium exploration companies, and KM98 represents an excellent strategic fit. The project expands the company's footprint in the HSP region of Quebec, complements the flagship Tyee project, and broadens the titanium exploration strategy by adding a second high-potential project with distinct geological characteristics.

To earn an initial 50% interest in the project, Eureka must pay CAD 80,000 in cash and issue 1.5 million shares. This includes spending CAD 2 million (approximately USD 2.04 million) on exploration over three years and completing a minimum 2,000-meter diamond drilling program. To earn an additional 30% interest, the company must pay CAD 100,000, issue another 2 million shares, and incur an additional CAD 2.5 million in exploration expenditures over the subsequent two years.

Eureka expects to launch its first exploration program at KM98 in late summer this year, including diamond drilling at the high-priority Hook Target and trenching at road-accessible targets. This acquisition complements Eureka's ongoing work at the Tyee project, which currently includes high-resolution airborne geophysical surveys and the advancement of the Cabin Lake Silver-Lead-Zinc-Gold Project in British Columbia.

Eureka Metals is a Canadian mineral exploration company focused on titanium, vanadium, and polymetallic projects in Quebec and British Columbia.