Vancouver, January 23, 2018 – 92 Resources Corp. (the “Company”) (TSX.V: NTY) (OTCQB: RGDCF) (FSE: R9G2) is pleased to report that it has signed an agreement granting Far Resources Ltd. (“Far” or “Far Resources”) the right to earn-in up to 90% of the Company’s wholly owned Hidden Lake Lithium Project (the “Project”), Northwest Territories by paying to the Company $50,000 in cash, issuing $1,450,000 in value of Far shares to the Company, and expending $2,300,000 on the Project. The Project is situated within the central parts of the Yellowknife Lithium Pegmatite Belt along Highway 4, approximately 40 km east of Yellowknife.
Far Resources was attracted to the Project by the encouraging results the Company disclosed in several recent news releases. The Company will benefit from bringing in a financially and technically strong partner to further develop the Project, and in the process will become a substantial shareholder of Far Resources with the ability to share in the Project’s success.
Terms of the agreement include:
- On closing, Far Resources will pay $50,000 cash and issue to the Company $500,000 in value of its shares at a deemed value of $0.90. To earn a 60% interest in the Project, Far must spend $500,000 in exploration expenditures on the Project within one year;
- On completing its first year’s expenditure obligation, Far Resources will have earned a 60% interest in the Project. They can then choose to exercise an option to acquire an additional 10% for a total of 70% of the Project by issuing to the Company $250,000 worth of Far shares at their then current market value to a maximum of $1.50 per share, and spend $500,000 during the next year in exploration expenditures, or, if Far does not exercise its option, it will be responsible for expending the next $1,000,000 in joint venture expenses before the Company is obligated to make any expenditures;
- If Far has exercised the option to earn in 70%, it has 2 more options of 10% each, so as to earn up to 90% of the Project, in each case by issuing additional Far Resources shares to 92 Resources ($300,000 in value to earn 80%,and an additional $400,000 in value to earn 90%) and expend additional amounts on the Project within the year after each exercise ($600,000 in expenditures to earn 80%, and an additional $700,000 to earn 90%).
Under the Agreement, Far Resources will become the operator of the Project. That leaves the Company free to become more active with its other projects and consideration of additional properties for exploration and development.
Said Adrian Lamoureux, CEO of 92 Resources: “We have shown that the Hidden Lake project has lots of great potential. Bringing in a partner like Far Resources gives us the ability to develop the project further at no out of pocket cost to us. If the project proves up as well as we hope, and Far Resources exercises its options, we will be a big part of that success through our remaining interest in the project and our share position in Far Resources.
Keith Anderson, CEO of Far Resources added: “We like the potential of the Hidden Lake project. We think it fits in extremely well with our overall mineral development strategy. We look forward to working with 92 Resources as a partner and we have high hopes for Hidden Lake’s prospects.”
About 92 Resources Corp.
92 Resources Corp is a modern energy solution company, focused on acquiring and advancing strategic and prospective modern energy related projects. The Company currently holds six properties in Canada, with three principal assets: the Hidden Lake Lithium Property, NWT, the Corvette Lithium Property, QC, and the Golden Frac Sand Property, BC.
The Hidden Lake Lithium Property is strategically located within the heart of the Yellowknife Pegmatite District. The Property is easily road accessible and its proximity to infrastructure provides for numerous development advantages.
The Corvette property consists of 76 claims, totalling 3,891 hectares, situated within the Guyer greenstone belt, which is also a favourable geological environment for gold occurrences.
The Golden Frac Sand Property covers more than a 4 km length of the Mount Wilson Formation, which consists of high purity, white, quartzite and friable sandstones. It’s strategic location in western Canada and proximity to infrastructure, provides competitive access to the oil and gas markets where high-quality frac sand is an essentially input. The adjacent Moberly Silica Sand Mine, owned and operated by Heemskirk Canada Ltd., produces a number of high-purity products and as of February 2017, became subject to a takeover bid by Northern Silica Corporation valued at $42.3 million AUD.
The transaction with Far Resources is subject to TSX Venture Exchange approval.
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: Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, “forward‐looking statements”. Forward‐looking statements includes that the earn-in agreement with Far Resources will be completed. The Company cautions readers that forward‐looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward‐looking statements. Risks include that the Far Resources agreement does not close because of regulatory approvals, or Far not completing its obligations as agreed. There is no guarantee that even if there are mineral resources on our properties, that they can be successfully or profitably mined or commercialized. The Company will not update these forward-looking statements except as required by law.