Mr. Eric Allard reports
TANTALEX LITHIUM RESOURCES REPORTS UP TO 1,02% LI20 FROM IT'S INFILL DRILLING ON MANONO TAILINGS K DUMP
Tantalex Lithium Resources Corp.
has received assay results to date from its 2,117-metre infill drilling program on the K dump that returned consistent high-grade lithium oxide results with all drill holes returning Li2O intercepts between 0.565 per cent and 1.018 per cent Li2O from surface over an entire length of drill holes.
Manono tailings -- K dump intercepts
Further to assay results received on its maiden 10,000-metre drill program, an additional drill program was conducted in second quarter 2022 targeting the K and G dumps. On the K dump, a total of 2,117 metres from 156 aircore drill holes were completed on nominal 50-metre centres to define a measured category for the mineral resource estimate currently under way.
Drill holes were sampled at one-metre intervals with three-metre composite samples submitted to SGS Lab, Randfontein RSA, for multielement assay by GE-IMS90A50 method.
To date, results from 382 out of a total of 836 submitted samples from 36 of the 156 drill holes have been received.
The K dump is composed of two different sections: (1) a steeply stacked section to the northeast that varies from 47 m to 21 m thick with an average thickness of 38 m; and (2) a gently domed 500-metre-by-600-metre terrace section with an average thickness of 11 m with depths generally 15 m to 20 m in the centre shallowing to three to five m at the edges.
From the assays returned to date, 24 holes were drilled to more than 15 metres. All 24 holes deeper than 15 m returned mineralization from the surface (see the attached table). The 17 holes in the stacked material have a global average of 0.625 per cent LiO2. The seven holes in the terrace have a global average of 0.928 per cent LiO2.
From the volume estimation report that Tantalex conducted in fourth quarter 2021, the estimated total volume of the K dump is 3,512,532 cubic metres. With an approximate density of 1.5 grams per cubic centimetre, this represents a total estimated volume of 5,268,797 metric tonnes.
"These results are highly encouraging as they demonstrate that the K dump is well mineralized laterally and vertically, and confirms our efforts to define a measured resource in this area," said Eric Allard, chief executive officer of Tantalex. "Our additional assay results on the K and G dump, as well as our final report on preliminary metallurgical testing, are also expected any time now. Our maiden mineral resource estimate for the Manono tailings is progressing well, and we continue targeting its completion before the end of September."
Grid promissory note
The corporation has issued a grid promissory note dated July 20, 2022, with AfriMet Resources AG, whereby AfriMet agreed to advance up to $1-million (U.S.) to the corporation pursuant to the terms below.
The loan will primarily be used for general working capital purposes. The loan will be evidenced by a promissory note in favour of AfriMet. The maturity date of the loan is one year from the date of issuance of the note, and the said note bears an interest of 10 per cent per annum calculated monthly in arrears and not in advance.
Closing of tranche one private placement
On July 15, the corporation was granted by the Canadian Securities Exchange a confidential price protection set to expire on Aug. 28, 2022, and later extended to Oct. 7
for completing a non-brokered private placement for gross proceeds of a maximum of $2-million (U.S.) through the issuance of common shares at a price of eight cents per common share of the corporation.
The corporation has completed an initial closing by issuing 6,512,500 common shares in favour of the holders. Simon Collins, a director of the corporation, subscribed for 3,225,000 common shares.
Conversion of debt into shares of the corporation
Further, the corporation has issued 2,943,558 common shares of the corporation at a price of eight cents per common share in satisfaction of approximately $235,485 in compensation payable to independent consultants and related parties of the corporation.
The company issued 2,943,558 common shares to related parties (within the meaning of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions)), and such issuances are considered related-party transactions for the purposes of MI 61-101. It issued 750,000 common shares to 3IM Technologies Inc., a consulting firm controlled by Eric Allard, president and CEO of the corporation. It issued 500,000 common shares to CFO Advantage Inc., a consulting company controlled by Kyle Appleby, chief financial officer of the corporation. It issued 1,271,250 common shares to Burton Financial Services Ltd. and 266,063 common shares to Hannes Miller, an officer of the corporation. Finally, it issued 156,245 common shares to Ikigai Specialist Solutions Pty. Ltd., an independent consultant of the corporation.
Such related-party transactions are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities being issued to the related parties, nor the consideration being paid by the related parties exceeded 25 per cent of the corporation's market capitalization at the date of issuance. The recipients of the common shares and the extent of such participation were not finalized until shortly prior to the completion of the issuance described herein. Accordingly, it was not possible to publicly disclose details of the nature and extent of related-party participation in the transactions contemplated hereby pursuant to a material change report filed at least 21 days prior to the completion of such transactions. All of the common shares were issued pursuant to an exemption from the prospectus requirement of applicable securities laws.
Its application with the Depository Trust & Clearing Corp. to further enable the easier electronic clearing and settlement of the corporation's common shares in the United States is still pending due to the corporation's name change and additional procedures which were required thereafter.
The scientific and technical content of this news release has been reviewed and approved by Gary Pearse, MSc, PEng, who is a qualified person as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects).
About Tantalex Lithium Resources Corp.
Tantalex is an exploration- and development-stage mining company engaged in the acquisition, exploration, development and distribution of lithium, tin, tantalum and other high-technology mineral properties in Africa. The corporation is listed on the Canadian Securities Exchange (symbol: TTX), the Frankfurt Stock Exchange (symbol: DW8) and the OTCQB Venture Market (symbol: TTLXF).
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