Vancouver, March 1, 2016 – 92 Resources Corp. (the “Company”) (TSXV: NTY) (FSE: R9G2) is pleased to announce that it has entered into a Property Purchase Agreement to acquire a 100% interest in the Hidden Lake Lithium Property (the “Property”) near Yellowknife, Northwest Territories.
Hidden Lake Lithium Property
The Hidden Lake Lithium Property consists of two mineral claims, totalling approximately 1,100 hectares. It is located just north of Highway 4, approximately 40 km northeast of the city of Yellowknife, NT. The property is highly prospective for spodumene-bearing lithium pegmatites. The lithium potential of pegmatites within the Yellowknife area was first recognized in the mid-1950’s, when a number of the region’s pegmatites were sampled and found to contain highly anomalous concentrations of lithium. Prior to 1955, small shipments of lithium ore were reported for two deposits within the region (Mulligan, 1965; p.6). It was also at this time that several pegmatites were identified at the Hidden Lake Property.
At Hidden Lake, the LU#12 pegmatite was mapped and sampled over an approximate exposure that measures 10 by 300 meters. Seven samples were collected from surface trenches, and contained between 1.37 and 3.01% Li2O. The very high grades of lithium were attributed to observed concentrations of coarse-grained spodumene. Crystals up to 36 inches long were noted, with visual estimates across the dyke(s) in some places of 20 to 35%.
In Lithium Resources in the Yellowknife Area, Northwest Territories Canada, (Lasmanis, 1977) provides the following summary:
“Detailed mapping and surface sampling of fourteen properties within the district has demonstrated the presence of 49,000,000 tons of rock to a depth of 152m (500ft) having an average grade of 1.40% Li2O. These resources could be developed if and when the market conditions place a strain on available supplies.”*
Spodumene within the Yellowknife district is also described as “generally light in colour and of good quality”.
* The foregoing district-scale resource estimate includes fourteen separate properties in the Yellowknife area, and does not include the LU#12 dyke of the Hidden Lake Property. The estimates are not considered reliable; however, are relevant given that they suggested the potential for significant tonnages of spodumene-bearing lithium pegmatite(s) within the vicinity of the Hidden Lake Property. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and the company is not treating the historical estimate as current.
About Hard-Rock (Spodumene Pegmatites) Deposits
Spodumene-bearing pegmatites continue to be an important supply of lithium despite the advent of low-cost production from lithium brine deposits in South America in the mid-1990’s. As the demand for lithium is increasing, other pegmatite deposits around the world are gaining attention. In many lithium pegmatite districts, including the Yellowknife district, other rare and specialty-metals have been recovered. Tin, beryllium, tantalum and niobium are often associated with spodumene pegmatite deposits.
The world’s largest active lithium mine is the Greenbushes Lithium Project in Australia with reported reserves (as of Sept 30, 2012) of 61.5Mt at 2.8% Li20. The mine has been in operation since 1985, and produces approximately 740,000 tpa of lithium (spodumene) concentrates.
92 Resources Corp. anticipates conducting fieldwork as soon as weather conditions permit. Initial fieldwork will consist of mapping and sampling all known pegmatites at the property to assess grade and mineralogy, and approximate surface dimensions of the pegmatites.
NI 43-101 Disclosure
Neil McCallum, P. Geo. of Dahrouge Geological Consulting Ltd., a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
The Company has entered into a Property Purchase Agreement (the Agreement) with DG Resource Management Ltd. (DG Resource), Zimtu Capital Corp. (Zimtu) and Michael V. Sklavenitis (MS), collectively the “Vendors”. In consideration for a 100% interest in the Property, 92 Resources Corp. will:
- pay $5,000 non-refundable deposit upon execution of the Agreement to DG Resource (paid);
- upon regulatory approval, issue 2,000,000 common shares as to 50% to DG Resource (1,000,000), 25% to Zimtu (500,000) and 25% to MS (500,000);
- within 30 days of regulatory approval, pay DG Resource project acquisition costs of $50,000 ($5,000 paid);
- twelve months after the regulatory approval, pay additional $35,000 to DG Resource;
- twelve months after the regulatory approval, issue further 2,000,000 common shares as to 50% to DG Resource (1,000,000), 25% to Zimtu (500,000) and 25% to MS (500,000); and
- incur $250,000 of exploration expenditures prior to September 30, 2016 and additional $250,000 of exploration expenditures prior to May 31, 2017;
The Agreement is subject to a 2% NSR of which the Company has the right to purchase 1% from DG Resource within 5 years of the regulatory approval for the sum of $2,000,000 per property.
The Company also announces that it has arranged a non-brokered private placement of up to 6,000,000 units (the “Units”) at a price of $0.05 per Unit to raise gross proceeds of up to $300,000. Each Unit will consist of one common share of the Company and one half of one transferable share purchase warrant (a “Warrant”). Each whole Warrant will permit the Warrant holder to acquire one additional common share of the Company (a “Warrant Share”) at a price of $0.10 per Warrant Share for a period of two years after closing.
The Company intends to use the net proceeds from the Private Placement for general working capital, and for expenditures on the Hidden Lake Lithium Property. The private placement is subject to acceptance by the TSX Venture Exchange. All the securities issued under the Private Placement will be subject to resale restrictions under applicable securities legislation. Finders’ fees may be paid by the Company in conjunction with the completion of the private placement.
For further information, please contact Adrian Lamoureux, Pres. & CEO at: Tel: 778-945-2950
On Behalf of the Board of Directors,
Adrian Lamoureux, President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Forward Looking Statements:
This News Release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control. Forward-looking statements in this news release include statements about the possible raising of capital and exploration of our properties. Actual results may differ materially from those currently anticipated due to a number of factors beyond the Company’s control. These risks and uncertainties include, among other things, that we may not be able to obtain regulatory approval, that we may not be able to raise funds required, that conditions to closing may not be fulfilled, we may not be able to organize and carry out an exploration program, and other risks associated with being a mineral exploration and development company. These forward-looking statements are made as of the date of this news release and, except as required by applicable laws, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.