Serpent Project Joint Venture
Harfang and Eramet Sign LOI to Advance Serpent Project in Québec
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Harfang Exploration Inc. has signed a Letter of Intent with French mining giant Eramet Group to form a joint venture on the Serpent Project in northern Québec. Under the deal, Eramet can earn up to a 65% stake in the project by funding exploration work over the next four years, according to Market Screener.
The Serpent Project sits in Eeyou Istchee James Bay, Québec. It covers roughly 50,000 hectares across 988 Exclusive Exploration Rights. Harfang will keep full control of field operations through to a Preliminary Economic Assessment, with Eramet taking a supervisory role, Pembroke Observer reported.
How Eramet Earns Its 65% Stake
The LOI sets out a clear earn-in path for Eramet. The French company funds exploration spending all the way through to a completed Preliminary Economic Assessment, known as a PEA. A PEA is an early-stage study that estimates whether a mine could be profitable. By bankrolling that work, Eramet earns up to a 65% interest in the project, according to Hanna Herald.
The timeline runs four years. Harfang stays in the operator seat for day-to-day fieldwork during that period. Once the PEA is done, the two companies would form a formal joint venture. The LOI is non-binding, meaning final terms still need to be agreed upon in a definitive deal, Brantford Expositor noted.
The Serpent Project's Scale and Location
The Serpent Project is entirely owned by Harfang, with no existing partners or royalties attached. It spans approximately 50,000 hectares — about the size of a mid-sized Canadian city's surrounding region. The 988 Exclusive Exploration Rights give the company sole access to prospect and drill across that land, according to Owen Sound Sun Times.
The project sits in Eeyou Istchee James Bay, a territory in northern Québec. The region has seen growing interest from miners in recent years due to its rich mineral potential and proximity to infrastructure. Québec is widely seen as one of the world's most mining-friendly jurisdictions, Pembroke Observer reported.
Who Is Eramet and Why This Deal Matters
Eramet is a major French mining and metallurgy group listed on the Paris stock exchange under the ticker ERA. The company operates mines and processing plants across multiple continents. Its interest in the Serpent Project signals confidence in Harfang's exploration targets and in Québec as a mining destination, according to Market Screener.
For Harfang, a junior explorer listed on the TSX Venture Exchange, landing a partner of Eramet's size is a significant step. Junior miners often struggle to fund costly exploration alone. Having Eramet cover the bills through to a PEA removes that financial pressure while keeping Harfang in the operator role, Hanna Herald noted.
What Comes Next for the Joint Venture
The two companies must now convert the LOI into a binding agreement. That means finalizing spending commitments, governance rules, and the terms of the joint venture itself. Until a definitive deal is signed, the LOI remains a framework only, Brantford Expositor reported.
If the deal closes, Harfang will lead exploration drilling and fieldwork while Eramet watches over progress. The four-year clock for earning that 65% stake would start ticking from the date of a final agreement. Investors will watch closely for news on the binding deal and early exploration results from the Serpent Project, according to Owen Sound Sun Times.
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