The prospective trend is highlighted by the CV1 Pegmatite where reconnaissance sampling in 2017 returned 3.48% Li2O in grab sample, with exploration in 2018 resulting in two new spodumene-bearing pegmatite discoveries termed CV3 and CV4 (see news release dated October 5th, 2017 and August 13th, 2018). Assays from the 2018 channel sampling and prospecting program will be reported shortly.
Company President & CEO Adrian Lamoureux comments: “we are very excited to arrive at this agreement with Osisko for the FCI Property. We recognized early-on with the discovery of the CV1 and CV2 pegmatites, that it would be beneficial to consolidate the entire prospective trend. Today, I am very pleased to announce that we now have the ability to explore several kilometers of the prospective CV Pegmatite Horizon as one project. The Company is well-positioned to build upon the significant discoveries made to date and to advance the Corvette-FCI Project with the most upside possible for our shareholders.”
In addition to the strong lithium potential, the FCI Property also includes the Lac Bruno Gold Showing, defined as a gold and sulphide-bearing amphibolite boulder with an assay of 38.1 g/t Au. The showing was discovered by Virginia Mines Inc. and highlights a boulder field in the area with a source yet to be located. Additional work was recommended up-ice of the discovery, within the Corvette-FCI Property, and has yet to be completed. The FCI Property also includes the Séricite Showing where a grab sample from a sulphide-bearing sericite schist returned 0.3 g/t Au, 150 g/t Ag, 1.89% Cu, 11.15% Pb, and 1.45% Zn. Although not a focus for the Company, the base and precious metal potential of the properties is evident that additional ground work is warranted.
Terms of Agreement
Under the terms of the Agreement, the Company may earn a 75% interest in twenty-eight (28) claims comprising Osisko’s FCI Property by satisfying the following conditions, subject to TSX Venture Exchange approval:
- Issuance of 1,000,000 shares upon closing date of the Agreement
- Incurring $250,0000 in work exploration expenditures and issuing of 1,000,000 shares on or before the first anniversary date of closing
- Incurring $800,0000 in work exploration expenditures on or before the second anniversary date of closing, upon which the Company would vest a 25% interest
- Incurring $1,200,000 in work exploration expenditures on or before the third anniversary date of closing, upon which the Company would vest an additional 25% interest, for a total of 50% undivided interest in the FCI Property
Osisko will act as Operator of the FCI Property for the term of the 50% earn-in, with a Steering Committee of equal representation formed to provide advice and direction to the Operator. Upon completion of the 50% earn-in (second anniversary date of Agreement), a Joint Venture Corporation will be formed with the Company retaining an Option to acquire a further 25% interest, for a total of 75% undivided interest, though funding of the next $2,000,000 in exploration expenditures. The Company may become Operator upon notice to Osisko that it intends to incur the $2,000,000 in work expenditures for a final undivided interest of 75%. Osisko’s remaining 25% interest may be further reduced through dilution if they elect to not fund their portion of subsequent exploration/development. If ownership falls below 10%, Osisko will have the right to convert this remaining interest into a 1% Net Smelter Royalty (NSR), of which, the Company retains the right to buy for $5,000,000 (cash or shares), and thereby, would obtain a 100% undivided interest in the FCI Property.
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 four principal assets in Canada: the Corvette and Pontax lithium properties in Quebec, the Golden Frac Sand Property, BC, and the Hidden Lake Lithium Property, NWT, currently under option to Far Resources Ltd.
NI 43-101 Disclosure
Darren L. Smith, M.Sc., P. Geol., 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.
For further information, please contact Adrian Lamoureux, President & CEO at Tel: 778-945-2950, E-mail: firstname.lastname@example.org or visit www.92resources.com.
On Behalf of the Board of Directors,
Adrian Lamoureux, President & CEO