AFX:CC - Arctic Fox Lithium Corp. Arranges a Non-Brokered Private Placement of Flow-Through and Non-Flow-Through Units
(TheNewswire)
V ancouver , B C - TheNewswire - May 16,2023 - Arctic Fox Lithium Corp. (CSE:AFX ) ( FSE:7N4) (the “Company” ) is pleased to announce that ithas arranged a non-brokered private placement of up to 7,500,000flow-through units ( “FTUnits” ) at a price of $0.18 and up to10,000,000 non-flow-through units ( “NFT Units” ) at aprice of $0.15 to raise gross proceeds of up to $1,350,000 and$1,500,000 respectively.
The FT Units will be composed of one common share inthe capital of the Company and one-half of one non-transferable sharepurchase warrant. Each whole warrant will entitle the holder thereofto purchase one additional common share in the capital of the Companyfor a period of 24 months from the closing date at an exercise priceof $0.25. Proceeds from the exercise of the common share purchasewarrants comprising part of the FT Units will not be eligible forflow-through expenditures. The Company will seek from the CanadianMinistry of Natural Resources certification for flow-througheligibility and intends to use the gross proceeds from the sale of theflow-through shares to incur exploration expenses that are eligibleCanadian exploration expenses (as such term is defined in the Income Tax Act (Canada)) on the Company’s portfolio of lithium projectsin the James Bay region of Québec, which will also qualify for theCanadian government’s critical minerals exploration taxcredit.
The NFT Units will be composed of one common share inthe capital of the Company and one non-transferable share purchasewarrant. Each warrant will entitle the holder thereof to purchaseone additional common share in the capital of the Company for a periodof 24 months from the closing date at an exercise price of $0.25. The Company intends to use the proceeds from this portion of theprivate placement to make option payments on its various mineralprojects and for general working capital.
All securities issued from both the FT Units and NFTUnits will be subject to a four-month and one day hold period from theclosing date. The Company may pay finders’ fees in connection withthe issuance of the FT Units and the NFT Units.
About Arctic Fox Lithium Corp.
Arctic Fox Lithium Corp. is a junior mineralexploration company focused on the acquisition and development ofmineral properties containing battery, base and preciousmetals.
The Company’s Kana Lake Lithium project is locatednorth of the Fliszar Lithium showing in the James Bay region ofQuébec. During a summer/fall 2022 survey program conducted by theQu é bec Ministère del’Énergie et des Ressources Naturelles ( “MERN” ) theirgeologists identified this area as a new lithium prospective zone thatis characterized by the presence of numerous E-W trending pegmatiticgranite dykes. The presence of garnet and muscovite in these rocksindicates a hyperaluminous composition, suitable for the developmentof lithium mineralization. These pegmatites are consistent with theFliszar Lithium showing to the south of the property which three grabsamples rich in lepidolite, returned up to 1.83% LiO2, 0.34% Cs, 1.11%Rb, 126 ppm Nb, 374 ppm Ta and 0.3% B*.
The Company’s 2,756-hectare Pontax North LithiumProject (“ PontaxNorth ”) is located 12 km south of Allkem Ltd.(ASX/TSX:ALLKEM) (“ Allkem ”) James Bay Lithium Project and 12 kmnorth of Stria Lithium Inc.’s (CSE:SRA) Pontax Lithium Project,located in northern Québec, approximately 130 km east of James Bayand the Cree Nation’s Eastmain community.
The northern portion of Pontax North contains a lithiumprospective zone in a similar geological environment to Allkem’sproject. According to the Quebec Ministère de l’Énergie et desRessources Naturelles (MERN) this zone is characterized by theabundance of S-type pegmatitic granite intrusions, a lithology knownfor its Be, Li, Nb, and Ta potential. Beryl (aberyllium silicate mineral) is reported in several outcrops withinthis zone. The Property is known to contain a 10 km long pegmatitetrend as mapped by MERN. This trend appears tobe underexplored, despite its recognized lithium potential. Swarms oflithium-bearing granitic dykes are present 12 km north of the Propertyat Allkem’s Cyr showing and at Stria Lithium’s Pontax showing 12km to the south.
Allkem is proposing to develop a lithium mine at theirJames Bay Lithium Project, located adjacent to the Billy DiamondHighway which provides access to key infrastructure in the region. The2021 Feasibility Study and Maiden Ore Reserve (“ FS ”) details a 321ktpa spodumene operation utilizing conventional open pit mining.Allkem’s spodumene expertise from the success of its Mt. Cattlinoperations in Western Australia has been applied to the design anddevelopment of the James Bay Project. The FS suggests that James BayProject will be the most competitive operation in the region with thelowest capital and operating costs. Shallow, high-grade mineralizationwith favourable infrastructure also supports the low-cost operation.Allkem has published a mineral resource estimate of 40.3 Mt @1.40%Li2O ( FS summaryhere ) andmineralization is still open.
Stria launched its first full drilling program at itsPontax project in 2017, completing seven holes for a total of 911.4 m.All seven holes intersected spodumene - bearing pegmatite dykesgrading from 0.65% Li2O to 2.49% Li2O over aminimum of 1.0 m ( Stria Lithium website ). The bestintercept was 21.39m grading 1.16% Li2O in drill hole975-17-0142.
References to adjacentproperties:
12 km North: Allkem Ltd. James BayLithium:
The technical report entitled “NI43-101 Technical Report Feasibility Study James Bay Lithium ProjectQuebec, Canada” prepared by G Mining Services and dated January 11,2022.
12 km South: Stria Lithium Inc.(Pontax Lithium Project):
https://strialithium.com/exploration/pontax-project/
The Company’s 1,056 hectare Delta Lake Lithiumproject (“ DeltaLake ”) is located 55 km southeast ofAllkem’s James Bay Lithium Project and 20 kmnorth of Critical Elements Lithium Corp. (TSXV: CRE) (“ CEL ”) Rose LithiumProject.
The geological environment in the northwestern portionof Delta Lake is similar to that hosting Allkem’s lithiummineralization. According to the Québec Ministère de l’Énergie etdes Ressources Naturelles ( “MERN” ) this zone is characterized by theabundance of S-type pegmatitic granite intrusions, a lithology knownfor its Be, Li, Nb, and Ta potential. Beryl (a beryllium silicatemineral) is reported in several outcrops within this zone.
Allkem (55 km northwest) is proposing to develop alithium mine at their James Bay Lithium Project, located adjacent tothe Billy Diamond Highway which provides access to key infrastructurein the region. The 2021 Feasibility Study and Maiden Ore Reserve(“ FS ”) details a 321,000 tonne per year operation utilizingconventional open pit mining. Allkem’s spodumene expertise from thesuccess of its Mt. Cattlin operations in Western Australia has beenapplied to the design and development of the James Bay Project. The FSsuggests that James Bay Project will be the most competitive operationin the region with low capital and operating costs. Shallow,high-grade mineralization with favourable infrastructure also supportsthe low-cost operation. Allkem has published a mineral resourceestimate of 40.3 Mt @1.40% Li2O ( FSsummary here ) and mineralization is still open.
CEL’s Rose Lithium-Tantalum mine (20 km south) isanticipated to start production in approximately 21 months. The minewill excavate a total of 26.3M tonnes ore grading an average of 0.87%Li 2 O and 138 ppmTa 2 O 5 after dilution. The mill willprocess 1.61M tonnes of ore per year to produce an annual average of224,686 tonnes of technical and chemical grade spodumene concentratesand 441 tonnes of tantalite concentrate. The ore is contained inseveral parallel and continuous shallow dipping pegmatite dykesoutcropping on surface. The ore zones are open at depth and a futureunderground operation is possible. Over the life of mine, the openpit will excavate a total of 182.4M tonnes ofwaste rock and 10.9 M tonnes of overburden. The average strip ratio is7.3 tonnes of waste per tonne of ore. ( CEL website ).
References to adjacentproperties:
55 km Northwest: Allkem Ltd. JamesBay Lithium:
The technical report entitled “NI43-101 Technical Report Feasibility Study James Bay Lithium ProjectQuebec, Canada” prepared by G Mining Services and dated January 11,2022.
20 km South: Critical ElementsLithium Corp. Rose Lithium-Tantalum:
The technical report entitled“Rose Lithium-Tantalum Project Feasibility Study NI 43-101 TechnicalReport” prepared by WSP Canada Inc. and dated July 26, 2022.
* This news release containsinformation about adjacent properties on which Arctic Fox has no rightto explore or mine. Readers are cautioned that mineral deposits onadjacent properties are not indicative of mineral deposits on theCompany’s properties.
For further information, please contact:
Harry Chew, President, CEO
Phone: (604) 689-2646
On behalf of the Board of Directors,
“Harry Chew”
Harry Chew
President & CEO
Arctic Fox Lithium Corp.
Neither the Canadian SecuritiesExchange nor its Regulation Services Provider (as that term is definedin the policies of the Canadian Securities Exchange) acceptsresponsibility for the adequacy or accuracy of this pressrelease.
The technical information containedwithin this News Release has been reviewed and approved by Gerald G.Carlson, Ph.D., P.Eng., Director of Arctic Fox and Qualified Person asdefined in National Instrument 43-101 Standards of Disclosure forMineral Projects.
Forward-LookingInformation: This releaseincludes certain statements that may be deemed "forward-lookingstatements". All statements in this release, other thanstatements of historical facts, that address any activities and eventsor developments that Arctic Fox Lithium Corp. (" Arctic Fox ") expects to occur, areforward-looking statements. Although Arctic Fox believes theexpectations expressed in such forward-looking statements are based onreasonable assumptions, such statements are not guarantees of closingof the private placements and actual results or developments maydiffer materially from those forward-looking statements.Forward-looking statements in this press release include, but are notlimited to, statements relating to the closing of the privateplacement described in this press release, anticipated use ofproceeds, and availability of certain tax treatment in connection withthe FT units issued as part of that private placement; and the futurepotential of and the exploration on the properties described in thispress release. Factors that could cause actual results to differmaterially from those in forward looking statements include:uncertainty with respect to the results of future exploration and theability to conduct any exploration activities on the propertiesdescribed in this press release; unexpected spending requirements ofthe Company and management’s discretion in utilizing the proceedsraised from the Company’s private placements; changes to theCanadian taxation regime and any tax treatment described in this pressrelease; market prices; disruptions relating to the COVID-19 pandemic;and continued availability of capital and financing and generaleconomic, market or business conditions. These statements are based ona number of assumptions including, among other things: assumptionsregarding general business and economic conditions; the availabilityof certain tax treatment under the Canadian taxation regime; and theCompany having sufficient resources to be able to conduct anticipatedexploration activities. Investors are cautioned that any suchstatements are not guarantees of future performance and actual resultsor developments may differ materially from those projected in theforward-looking statements. Arctic Fox does not assume any obligationto update or revise its forward-looking statements, whether as aresult of new information, future events or otherwise, except asrequired by applicable law.
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