Andrew Smith reports
LITHIUM ONE ACQUIRES STRATEGIC PROPERTY ADJOINING PATRIOT'S CORVETTE
Lithium One Metals Inc. has entered into an arm's-length option agreement with Glenn Griesbach (the optionor) to acquire a 100-per-cent interest in and to the Lac Astrid lithium project in northwestern Quebec, Canada. The Lac Astrid lithium project is composed of 70 mineral claims covering approximately 3,600 hectares (36 square kilometres) located in a very active hard-rock lithium pegmatite area in the prolific James Bay mining area of Quebec, 900 kilometres north-northeast of Montreal and 250 km east of the small community of Radisson, in the James Bay region of Northern Quebec. The Lac Astrid property is located approximately 14 kilometres south of the Trans-Taiga all-weather gravel highway and 18 kilometres south of the Cargair floatplane base.
The Lac Astrid lithium property lies 11 km east of Patriot's Corvette lithium discovery, within the 50 km CV lithium trend, which Patriot Metals describes as an emerging spodumene pegmatite district discovered by its exploration team in 2017.
There is little history of exploration on the Lac Astrid property. The mineralization of economic interest that is sought in the region and at Lac Astrid is found in lithium-bearing spodumene pegmatite dike complexes.
Lithium One's initial focus of exploration will be the assessment of outcropping white pegmatite with muscovite and tourmaline (MERN database, outcrop 5526) first described by MERN geologists in 2011.
Pursuant to the agreement, the company may acquire a 100-per-cent interest in and to the Lac Astrid project by (i) making aggregate cash payments of $600,000 ($100,000 on execution of the agreement, $200,000 on the first anniversary of the agreement and $300,000 on the second anniversary of the agreement); (ii) issuing an aggregate of 1.2 million units and three million common shares of the company (1.2 million units (each unit comprises one common share and one warrant exercisable at 40 cents for 24 months) on execution of the agreement, one million shares on the first anniversary of the agreement and two million shares on the second anniversary of the agreement). The share issuances and cash payments increase over the term of the agreement. Upon exercise of the option by the company, the optionor will retain a 3-per-cent net smelter return royalty on the Lac Astrid project, 2 per cent of which may be purchased by the company for $2-million.
In addition, the company reports that Bilal Bhamji, CPA, CMA, has been appointed as chief financial officer. Mr. Bhamji, a graduate and class valedictorian of Vancouver Community College, British Columbia, has over 20 years of experience in accounting and finance.
The company is also pleased to announce that it will be conducting a non-brokered private placement financing under which it will raise gross proceeds of up to $1.25-million by the issue of units at 25 cents per unit. Each unit consists of one common share and one-half of a warrant. Each whole warrant shall be transferrable and entitle the holder to subscribe for an additional common share at 40 cents for a period of two years. The company reserves the right to accelerate the expiry date of the warrants, in the event that the shares trade at 50 cents or above for a period of 10 consecutive trading days.
The company intends to use the proceeds from the financing for mineral exploration and for general working capital.
The shares and units to be issued under the financing will be offered by way of private placement in each of the provinces of Canada and such other jurisdictions as may be determined by the company pursuant to applicable exemptions from the prospectus requirements under applicable securities laws. The securities issued under the financing will have a hold period of four months and one day from the date of issuance. The company may pay finder's fees and may issue finder's warrants in connection with the financing.
This project is under the supervision of Andrew Lee Smith, PGeo, a director of Lithium One Metals, under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Mr. Smith is responsible for the technical contents of this news release, and has approved the disclosure of the technical information contained herein.
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