Harfang and Eramet Sign LOI to Advance the Serpent Project in Quebec

Harfang Exploration Inc. (HAR) has signed a non-binding Letter of Intent with major mining group Eramet to form a joint venture on its wholly-owned Serpent Project in Quebec. Under the agreement, Eramet will fund 100% of exploration expenditures over three phased stages leading up to a Preliminary Economic Assessment, in exchange for earning a 65% interest. Harfang retains a 35% interest and will remain the day-to-day field operator, while Eramet assumes a supervisory role.

The technical program integrates advanced mineralogy, metallurgy, and ESG baselines, with a primary focus on lithium at the Améliane-Milou spodumene corridor, which was discovered in 2023. The agreement remains a non-binding LOI, meaning terms are subject to definitive documentation and execution.

Harfang Exploration Inc. (HAR) faces a critical financial juncture, having reported only $0.76 million in cash as of April 30, 2026, alongside a going-concern warning in its Q1-2026 MD&A. The agreement with Eramet addresses this liquidity constraint by eliminating the need for Harfang to fund lithium exploration at the Serpent project, a requirement that previously would have necessitated equity dilution. By shifting Serpent’s lithium exploration to a fully-funded program, the partnership reduces near-term capital urgency and removes the project from Harfang’s balance sheet as a financial drain.

Eramet, a global mining and metallurgical group with extensive lithium expertise, brings strategic validation to the Serpent project. This involvement may attract further market interest to the asset. However, the Letter of Intent (LOI) remains non-binding, and definitive agreements along with regulatory approvals are still required. The arrangement funds project-level spending only and does not directly inject cash into the corporate treasury. Consequently, general and administrative expenses and working capital for other properties remain a challenge, suggesting that Harfang will likely need additional financing in the coming months, although the overall risk profile has improved.

The stock is currently trading at its all-time low of $0.05. This development marks a material shift from previous news, which focused on copper-gold potential at Serpent and disappointing Mista drill results. The pivot to lithium with a major partner materially alters the project’s risk/reward profile and exceeds prior market expectations.

Harfang Exploration Inc. (HAR) is a junior mineral explorer with a portfolio of 100%-owned or joint-ventured projects in Quebec and Ontario, targeting gold, copper, silver, and lithium.

The company’s flagship asset is the Serpent Project in Quebec, covering approximately 50,000 hectares in James Bay. The property hosts the Mista Cu-Au-Ag system, which was drilled in 2026 with modest results, as well as the recently discovered Améliane-Milou spodumene corridor featuring lithium-cesium-tantalum pegmatites. An Eramet letter of intent focuses exclusively on the lithium potential, reframing the previously copper-gold-focused Serpent asset as a critical-minerals play.

Other key assets include Menarik West, a 50/50 joint venture with SOQUEM for gold exploration funded with $3 million over three years; Blakelock, an early-stage gold project in Ontario; and Sky Lake, a gold project in Ontario that is currently paused pending a First Nation agreement.