AFX:CC - Arctic Fox Lithium Corp. Closes Second Tranche of Non-Brokered Private Placement of Flow-Through and Non-Flow-Through Units
(TheNewswire)
Vancouver, British Columbia - TheNewswire - July 24, 2023 - Arctic Fox Lithium Corp. (CSE:AFX ) ( FSE:7N4) (the “ Company ” ) is pleasedto announce that it has closed the second tranche of its non-brokeredprivate placement of flow-through units ( “ FTUnits ” ) at a price of$0.18 per FT Unit and non-flow-through units ( “ NFTUnits ” ) at a price of$0.15 per NFT Unit that was first announced on May 16, 2023. Inconnection with the closing of the second tranche, the Company issued2,600,000 FT Units for gross proceeds of $468,000.00 and 1,033,333 NFTUnits for gross proceeds of $154,999.95.
The FT Units are composed of one common share in thecapital of the Company to be issued as a “flow-through share” andone-half of one non-transferable common share purchase warrant (eachwhole common share purchase warrant, a “ Warrant ”). EachWarrant will entitle the holder thereof to purchase one additionalcommon share in the capital of the Company for a period of 24 monthsfrom the closing date at an exercise price of $0.25. Proceeds fromthe exercise of the Warrants comprising part of the FT Units will notbe eligible for flow-through expenditures. The Company will seek fromthe Canadian Ministry of Natural Resources certification forflow-through eligibility and intends to use the gross proceeds fromthe sale of the FT Units to incur exploration expenses that areeligible Canadian 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 are composed of one common share in thecapital of the Company and one non-transferable Warrant. Each Warrantwill entitle the holder thereof to purchase one additional commonshare in the capital of the Company for a period of 24 months from theclosing date at an exercise price of $0.25. The Company intends to usethe proceeds from the sale of the NFT Units to make option payments onits various mineral projects and for general working capital.
All securities comprising the FT Units and the NFTUnits are subject to a four-month and one day hold period from theclosing date. The Company paid finders’ fees in connection with theissuance of the FT Units and the NFT Units in an aggregate amount of$39,600 and issued an aggregate of 174,000 finders’ warrants, witheach finders’ warrant exercisable for one common share in thecapital of the Company at an exercise price of $0.25 for 24 months.
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 (a beryllium silicatemineral) is reported in several outcrops within this zone. TheProperty is known to contain a 10 km long pegmatite trend as mapped by MERN. This trend appears to be underexplored,despite its recognized lithium potential. Swarms of lithium-bearinggranitic dykes are present 12 km north of the Property at Allkem’sCyr showing and at Stria Lithium’s Pontax showing 12 km to thesouth.
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 will process 1.61M tonnes of ore per yearto produce an annual average of 224,686 tonnes of technical andchemical grade spodumene concentrates and 441 tonnes of tantaliteconcentrate. The ore is contained in several parallel and continuousshallow dipping pegmatite dykes outcropping on surface. The ore zonesare open at depth and a future underground operation is possible. Over the life of mine, the open pit will excavate a total of 182.4Mtonnes of waste rock and 10.9 M tonnes of overburden. The averagestrip ratio is 7.3 tonnes of waste per tonne of ore. ( CELwebsite ).
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, actual results or developments may differmaterially from those forward-looking statements. Forward-lookingstatements in this press release include, but are not limited to,statements relating to potential future closings 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 the 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 the Canadiantaxation regime and any tax treatment described in this press release;market prices; disruptions relating to the COVID-19 pandemic; andcontinued availability of capital and financing and general economic,market or business conditions. These statements are based on a numberof assumptions including, among other things: assumptions regardinggeneral business and economic conditions; the availability of certaintax treatment under the Canadian taxation regime; and the Companyhaving 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.
Copyright (c) 2023 TheNewswire - All rights reserved.