16:26:42 EDT Thu 16 May 2024
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Eureka Lithium Corp
Symbol ERKA
Shares Issued 51,071,119
Close 2023-12-07 C$ 0.52
Market Cap C$ 26,556,982
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Eureka Lithium signs LOI to option Lac La Motte project

2023-12-08 09:21 ET - News Release

Mr. Jeffrey Wilson reports

EUREKA LITHIUM CORP SIGNS LETTER OF INTENT TO OPTION DRILL-READY AND PERMITTED LITHIUM PROPERTIES NEAR VAL D'OR, QUEBEC

Eureka Lithium Corp. has entered into a letter of intent (LOI) with respect to an option to acquire from Medaro Mining Corp. (optionor) a 100-per-cent undivided interest in and to the mineral claims comprising the optionor's Lac La Motte project in the mining area of Abitibi, Quebec, subject to a 1-per-cent net smelter returns (NSR) royalty in favour of the underlying owner (as defined below).

Jeffrey Wilson, Eureka's president and chief executive officer, stated: "We are pleased to enter into this letter of intent. We remain committed to our highly prospective assets in the Nunavik region of Quebec, however, this new acquisition balances out the company's project portfolio with a lithium project that can be drilled during the winter months, has good access and infrastructure, and is road accessible, is drill ready and drill permitted, and is situated in a mining-friendly and active lithium district. Prior work at Lac La Motte includes significant pegmatite showings and reported spodumene, as well as encouraging prior drill intercepts, including drill hole MD22-08 which intersected two pegmatites: Upper 1.33 metres wide with 1.49 per cent Li2O [lithium oxide] at 36 m depth; and lower 0.93 m wide at 0.88 per cent Li2O at 41.2 m depth. Upon satisfaction of the due-diligence period and completion of the definitive agreement, Eureka's will be positioned with data, field crews and access to a drill to immediately commence work."

Under the letter of intent, Eureka will have an exclusive dealing period of 30 days during which it may conduct due diligence with a view to negotiating and entering into a definitive agreement with the optionor, pursuant to which it would acquire the option to acquire a 100-per-cent undivided interest in and to the property, subject to the NSR, by satisfying each of the following conditions:

  • Issuing to the optionor 200,000 common shares of Eureka on the effective date of the definitive agreement;
  • Incurring exploration expenses in respect of the property totalling $500,000 by the date that is 12 months from the effective date;
  • Paying, on behalf of the optionor, $45,000 in cash to the underlying owner of the property by May 6, 2024;
  • Issuing to the optionor 300,000 common shares by the date that is 12 months from the effective date;
  • Incurring additional exploration expenses in respect of the property totalling $500,000 by the date that is 24 months from the effective date;
  • Paying, on behalf of the optionor, $50,000 in cash to the underlying owner by May 6, 2025; and
  • Issuing to the optionor one million common shares by the date that is 24 months from the effective date.

The issuance of any common shares will be made pursuant to applicable exemptions from the registration and prospectus requirements under Canadian securities and corporate laws, and such common shares will be subject to a hold period of four months and one day from the date of issuance.

The letter of intent is non-binding, except for provisions relating to the exclusive period of dealing and the right of Eureka to conduct a due-diligence review, as well as certain other customary provisions.

About Lac La Motte

The Lac La Motte property is located in the prolific mining area of Abitibi, Quebec, 40 kilometres northwest of the city of Val d'Or. There are several active lithium prospects/mines at various stages of exploration and development located approximately five km to 20 km from the property.

Recent highlights from 2022 drill program:

  • Drill hole MD22-02 intersected a 0.7 m wide pegmatite with 0.89 per cent Li2O at 72.7 m drilled depth.
  • Drill hole MD22-05 intersected three pegmatites: Top 0.79 m wide with 1.34 per cent Li2O at 13.18 m depth; middle 0.7 m wide with 0.5 per cent Li2O at 20 m depth; and lower 0.81 m wide at 0.78 per cent Li2O at 22.92 m depth.
  • Drill hole MD22-06 intersected three pegmatites: Top 0.11 m wide with 1.10 per cent Li2O at 31.95 m depth; middle 0.87 m wide with 1.01 per cent Li2O at 34.53 m depth; and lower 0.80 m wide at 0.55 per cent Li2O at 37.58 m depth.
  • Drill hole MD22-07 intersected 1.76 m wide pegmatite with average 4,375 parts per million (ppm) Li (lithium)/0.94 per cent Li2O.
  • Drill hole MD22-08 intersected two pegmatites: Upper 1.33 m wide with 1.49 per cent Li2O at 36 m depth; and lower 0.93 m wide at 0.88 per cent Li2O at 41.2 m depth.
  • Drill hole MD22-17 intersected 0.03 m wide pegmatite with 1,080 ppm Li at 46.9 m depth.

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About Eureka Lithium Corp.

Eureka Lithium is the largest lithium-focused landowner in the northern third of Quebec, known as the Nunavik region, with 100-per-cent ownership of three projects comprising 1,408 square kilometres in the emerging Raglan West, Raglan South and New Leaf lithium camps. These claims were acquired from legendary prospector Shawn Ryan and are located in a region that hosts two operating nickel mines, with deep-sea port access.

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