Mr. Nader Vatanchi of Spey reports
SPEY RESOURCES SIGNS OPTION AGREEMENT TO ACQUIRE A 100% INTEREST IN THE POCITOS I AND II CLAIMS FROM AIS RESOURCES IN SALTA, ARGENTINA
Spey Resources Corp. has entered into an option agreement dated June 23, 2021, with A.I.S. Resources Ltd. for an option to acquire a 100-per-cent interest in the Pocitos I and Pocitos II claims located in Salta, Argentina.
The project is located approximately 10 kilometres from the township of Pocitos where there is gas, electricity and telephone Internet services. Pocitos I is 800 hectares and Pocitos II is 532 hectares, both of which are accessible by road. A.I.S. Resources has spent more than $1.5-million (U.S.) exploring the project, including surface sampling, trenching, TEM (transient electromagnetic) geophysics and drilling of two 400-metre holes with outstanding results. To date, Pocitos II has yet to be drilled, and the locations have been identified for holes 3 and 4.
A.I.S. Resources did not pursue the property due to the high magnesium content of the brines; however, the Ekosolve lithium extraction process will help alleviate the magnesium situation. Lithium values of up to 125 parts per million were recorded, and the flow rate of the hole exceeded 75,000 litres per minute and continued for more than five hours. Both drill holes had exceptional brine flow rates. Spey's plan is to sample the current drill holes and drill a further two holes to estimate a National Instrument 43-101 resource calculation and progress discussions to build a production pilot plant.
Pursuant to an option agreement, A.I.S. has an option to acquire the property from the current owners. Upon the exercise of the underlying option by A.I.S., Spey will be able to exercise the option and acquire a 100-per-cent interest in the property from A.I.S. by paying a total of $1,732,000 (U.S.) prior to June 23, 2022.
In order to maintain the option in good standing under the agreement, Spey must immediately pay A.I.S. a total of $100,000 (U.S.) and issue 2.5 million Spey common shares. In addition, Spey must complete a $500,000 (U.S.) exploration program on the property within the next 12 months. Upon exercise of the option and Spey's acquisition of a 100-per-cent interest in the property, A.I.S. will retain a 7.5-per-cent royalty on the sales revenue of lithium carbonate or other lithium compounds from the property, net of export taxes.
Chief executive officer and director Nader Vatanchi stated: "Working with A.I.S. and their team in Argentina has been very productive, and we are fortunate that they have access to these projects to expand our lithium portfolio. Spey is still focused on moving our Incahuasi exploration program forward and aim to be drill this summer now that we have the results from our TEM geophysics. Our new properties announced today, Pocitos I and II, are advanced stage, and we look forward to drilling and completing a[n] NI 43-101 report so that we can begin planning for potential production."
Phillip Thomas, BSc, Geol, MBusM, FAusIMM, MAIG, MAIMVA (CMV), a qualified person as defined under NI 43-101 regulations, has reviewed the technical information that forms the basis for portions of this news release, and has approved the disclosure herein. Mr. Thomas is independent of the company but discloses that he is a shareholder of Spey.
About Spey Resources Corp.
Spey Resources is a Canadian mineral exploration company that holds two option agreements to acquire 100-per-cent interest in the Candela II, Pocitos I and Pocitos II lithium brine projects located in the Salta province, Argentina. Spey also holds an option to acquire a 100-per-cent undivided interest in the Silver Basin project located in the Revelstoke mining division of British Columbia as well as an option to acquire a 100-per-cent interest in the Kaslo silver project, west of Kaslo, B.C.
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