MONTREAL, QUEBEC
-- (Marketwired)
-- 02/09/15
Canada Strategic Metals Inc. ("Strategic Metals" or the "Company") (TSX VENTURE:CJC) (FRANKFURT:YXEN) (OTCBB:CJCFF) and Lomiko Metals Inc. ("Lomiko") (TSX VENTURE:LMR) (OTC PINK:LMRMF) (FRANKFURT:DH8B) are very pleased to confirm Lomiko's acquisition of a 40% interest in the La Loutre Property (see press release dated September 23, 2014 for more details on the initial transaction) and announce a new option agreement between the two companies following a successful drilling campaign on the La Loutre Property.
Strategic Metals has recently sought to divest itself of graphite assets and an opportunity to acquire the Lac des Iles Property arose for Lomiko. As such, Strategic Metals and Lomiko have agreed on the terms of an additional option pursuant to which Lomiko shall have the exclusive right and option to acquire an additional 40% undivided interest in the La Loutre Property and an 80% undivided interest in the Lac des Iles Property in exchange for a payment of $10,000, the issuance of 3,000,000 common shares of Lomiko and the funding of $2.75 million in exploration expenditures over a 2 year period.
The Lac des Iles property consists of 1 large contiguous block of 104 mineral claims totaling 5,601.30 hectares (56.01 km2) that borders the western limit of the Imerys Lac des Iles property which is the location of the Imerys Carbon and Graphite Mine and Processing Facility. The Property is close to the town of Mont-Laurier, 150 km northwest of Montreal in southern Quebec.
As for the La Loutre Property, Lomiko had optioned the property from Strategic Metals in September 2014 to explore for high grade, crystalline flake graphite deposits that were near surface and for graphite flakes with high carbon purity. Lomiko is especially interested in 6 drill holes intercepts that met or exceeded the criteria jointly established by Canada Strategic and Lomiko. Further, these intercepts indicate the possibility of significant tonnage of high grade graphite near the surface.
Highlighted Results
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Hole # From (m) To (m) Length(i) (m) Gp %
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LL-14-05 6.65 135.00 128.35 4.72
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Including 6.65 20.20 13.55 9.37
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Including 104.00 130.40 26.40 8.42
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LL-14-15 3.40 56.65 53.25 4.40
including 10.20 25.55 15.35 7.46
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LL-14-17 3.70 17.90 14.20 6.52
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LL-14-19 3.00 15.40 12.40 5.36
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including 13.00 15.40 2.40 15.65
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37.30 60.00 22.70 6.64
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including 38.35 49.00 10.65 11.18
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66.00 75.65 9.65 4.55
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LL-14 -21 15.3 35.6 20.3 8.01
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LL-14-24 14.1 32.25 18.15 7.73
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including 14.1 19.4 5.3 13.15
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Details of the transaction
In order to acquire (i) an additional 40% undivided interest in the La Loutre Property, thereby bringing its total interest to 80%, and (ii) an 80% undivided interest in the Lac des Iles Property (collectively, the "Option"), Lomiko will need to complete the following:
a. pay a non-refundable amount of $10,000 to Strategic Metals upon the
execution of the option agreement between the parties;
b. issue to Strategic Metals 3,000,000 common shares of Lomiko at a deemed
price of $0.07 per share five (5) business days following the receipt of
the required regulatory approvals, and;
c. complete or fund $2.75 million in exploration expenses:
-- $1,500,000 of which $950,000 by no later than December 31, 2015 an
$550,000 by no later than December 31, 2016 on the La Loutre Property;
-- $250,000 of which $150,000 by no later than December 31, 2015 and
$100,000 by no later than December 31, 2016 on the Lac des Iles
Property, and;
-- $1,000,000 of which $700,000 by no later than December 31, 2015 and
$300,000 by no later than December 31, 2016 on other mining rights of
Strategic Metals.
Strategic Metals will remain the operator for the conduct of exploration programs on the properties until completion of the Option by Lomiko, at which time the parties will form a joint venture on the La Loutre Property and on the Lac des Iles Property, and Lomiko will become the Operator. Strategic Metals will thereafter maintain a non-dilutive 20% interest on both properties until such time as a Feasibility Study (as such term is defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects) is completed on the La Loutre Property or the Lac des Iles Property, as applicable, and the parties elect to proceed with the financing of the project for the construction and operation of a mine thereon.
The common shares of Lomiko issued in connection with the Option shall be subject to a regulatory hold period of four months and one day from their date of issuance. Furthermore, Strategic Metals has agreed to a voluntary 10 month period on half of the Lomiko shares received (1,500,000). The completion of the transaction is subject to the approval of the TSX Venture Exchange.
A map of hole localisation and results is available on the web site of the Company at: www.csmetals.ca.
Complete Table of mineralized intersections from the recent 25 holes drilling campaign
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Hole # From (m) To (m) Length(i) (m) Gp %
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LL-14-01 18.50 39.00 20.50 1.36
69.00 81.00 12.00 1.54
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LL-14-02 8.60 28.00 19.40 2.56
55.00 71.50 16.50 1.54
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LL-14-03 3.00 89.50 86.50 2.55
Including 3.00 54.40 51.40 2.45
Including 59.00 75.00 16.00 5.08
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LL-14-04 39.00 117.00 78.00 2.74
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LL-14-05 6.65 135.00 128.35 4.72
Including 6.65 20.20 13.55 9.37
Including 104.00 130.40 26.40 8.42
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LL-14-06 3.90 102.00 98.10 2.74
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LL-14-07 3.30 102.00 98.70 2.12
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LL-14-08 10.50 16.50 6.00 2.55
52.50 102.00 49.50 2.20
Including 72.00 102.00 30.00 2.84
Including 83.00 102.00 19.00 3.36
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LL-14-09 NSV
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LL-14-10 3.00 43.00 40.00 3.12
Including 35.00 41.50 6.50 6.34
Including 38.55 41.50 2.95 8.88
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LL-14-11 3.00 35.00 32.00 3.19
including 31.00 33.50 2.50 12.38
86.00 91.20 5.20 3.04
107.70 111.00 3.30 1.38
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LL-14-12 32.00 65.00 33.00 3.00
including 63.00 65.00 2.00 13.18
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LL-14-13 5.30 60.90 55.60 2.74
including 56.60 60.90 4.30 9.60
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LL-14-14 18.80 63.60 44.80 4.98
Including 18.80 33.50 14.70 9.02
Including 18.80 22.00 3.20 13.60
including 25.50 33.50 8.00 10.20
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LL-14-15 3.40 56.65 53.25 4.40
including 10.20 25.55 15.35 7.46
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LL-14-16 3.00 24.00 21.00 3.06
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LL-14-17 3.70 17.90 14.20 6.52
82.50 117.50 35.00 2.24
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LL-14-18 4.10 25.00 20.90 3.79
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LL-14-19 3.00 15.40 12.40 5.36
including 13.00 15.40 2.40 15.65
37.30 60.00 22.70 6.64
including 38.35 49.00 10.65 11.18
66.00 75.65 9.65 4.55
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LL-14-20 23.40 27.10 3.70 5.14
34.85 70.00 35.15 6.04
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LL-14 -21 15.3 35.6 20.3 8.01
59.9 75.4 15.5 5.91
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LL-14-22 63 129 66 2.78
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LL-14-23 25.5 162 136.5 3.48
including 25.5 30.15 4.65 6.43
including 55.3 66 10.7 11.23
including 155 162 7 10.3
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LL-14-24 14.1 32.25 18.15 7.73
including 14.1 19.4 5.3 13.15
73 172.75 99.75 2.74
including 73.95 77.05 3.1 8.68
including 167 171.5 4.5 11.99
216.55 218.6 2.05 3.5
224.15 229 4.85 2.16
274 291 17 1.24
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LL-14-25 69.75 153 83.25 3.13
including 69.75 73.50 3.75 10.94
179.00 189.50 10.5 2.95
229.50 246.50 17 1.40
274.55 280.50 5.95 2.68
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(i)Length along the core. The Company estimates the true width of the mineralized zone at 70 to 90% of the width intersected in the drill holes.
The 2014 drilling program was managed by Consul-Teck Exploration of Val-d'Or, Quebec, who designed the drilling campaign, supervised the program and logged and sampled the core.
Consul-Teck Exploration implemented QA/QC procedures to ensure best practices in sampling and analysis of the core samples. The drill core was logged and then split, with one half sent for assay and the other retained in the core box as a witness sample. Duplicates and blanks were inserted regularly into the sample stream.
The samples in secure tagged bags were delivered directly to the analytical facility for analysis. In this case, the analytical facility was the ALS minerals in Val-d'Or, Quebec. The samples are weighed and identified prior to sample preparation. The samples are crushed to 70% minus 2 mm, then separated and pulverized to 85% passing 75um. All samples are analyzed for Carbon Graphite using C-IR18.
Jean-Sebastien Lavallee (OGQ #773), geologist, shareholder and Chief Executive Officer of the Company and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.
About Canada Strategic Metals
Canada Strategic Metals is an emerging company focused on the exploration and development of a number of projects covering over 20,000 hectares in Quebec. With broad management experience in green technology and junior resource exploration and development, Canada Strategic Metals is well positioned to aggressively advance this promising property portfolio for its shareholders.
For more information on the Company, please visit www.csmetals.ca.
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 release.
Contacts:
Jean-Sebastien Lavallee, P. Geo
Chief Executive Officer
819-354-5146
Christophe Romary
President
514-913-7483
Paradox Public Relations
514-341-0408
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