Zenyatta had previously acquired 80 per cent by having spent $10 million on exploration over the last two years. Now it has picked up the remaining 20 per cent.
Cliffs will receive 1,250,000 shares from Zenyatta and will be granted a net smelter return royalty of 0.75 per cent.
"This transaction is of strategic importance to our company," said Aubrey Eveleigh, Zenyatta president and CEO, in a Nov. 21 statement.
We now own 100 per cent of the Albany graphite deposit and, more importantly, have eliminated the back-in right that Cliffs held under the original agreement. This allows Zenyatta the liberty of negotiating with another party, especially an end user of graphite, at any time along the development path of our graphite deposit."
Zenyatta is developing a graphite deposit first discovered in 2011. The company it is "only and largest 'vein type' graphite deposit under development in the world."
The Albany deposit is located 30 kilometres north of the Trans-Canada Highway, near the communities of Constance Lake First Nation and Hearst.