MDM:CC - Madoro Enters into Option Agreement to Acquire 100% of the First Green Lithium Project in Quebec
(TheNewswire)
V ancouver , B C - TheNewswire - February1, 2023 - Madoro Metals Corp. (“ Madoro ” or the“ Company ”) ( TSXV:MDM ) ( OTC:MSTXF ) ( WKN:A2QQ1X ) is pleased to announce that it has entered into an optionagreement (the “Agreement”) to acquire a 100% interest in the 213claim, 12,325 hectare First Green Lithium Project (the “Property”)located in the rapidly emerging Cadillac-Pontiac lithium camp in theAbitibi Témiscamingue region, approximately 75 kilometres southwestof Val-d’Or, Québec (Figure 1).
Dusan Berka, President and CEO of Madoro states,“Adding the First Green Lithium Project to Madoro’s projectportfolio is a low-risk and potentially high-reward opportunity forour shareholders. There is unprecedented interest in domestic sourcesof lithium due to record high prices and very strong demand from theelectric vehicle and battery storage markets. Quebec is showing strongsupport for exploration, production and processing of criticalstrategic minerals and is emerging as key supplier of lithium to NorthAmerican markets. The First Green Property acquisition marks asignificant move by our Company into a high-demand commodity in astable jurisdiction.”
Figure 1 : First Green LithiumProperty Location within Cadillac-Pontiac Lithium Camp
Companies already exploring for lithium-cesium-tantalum(“LCT”) pegmatites in the Cadillac-Pontiac camp include SayonaMining, Vision Lithium, Brunswick Exploration, Winsome Resources andHigh Tide Resources. First Green lies west and north of the Tansimproject held by Sayona Mining.
Numerous pegmatite outcrops have been identified byhistorical government mapping but there is no record of previousmineral exploration on the Property or of any LCT analysis. A networkof logging roads and the proximity to the mining centres of Malarticand Val-d’Or will allow for low-cost exploration work. Madoro intends to complete a high-definition airbornemagnetic and radiometric survey in conjunction with an interpretivestudy utilizing high-definition LiDAR data to identify prospective LCTpegmatite targets.
Agreement Details
Pursuant to the Agreement, the Company may acquire a100% interest in the Property by making aggregate cash payments of$165,000 and issuing an aggregate of 5,400,000 common shares of theCompany over a period of three years. In addition, the Company mustincur an aggregate of $1,000,000 in exploration expenditures on orbefore the third anniversary date of the Agreement. The arm’s lengthvendors will retain a 2.0% net smelter royalty, 0.5% of which may bepurchased by the Company for $1,000,000. Further, the Company hasagreed to make milestone payments of $500,000 and $1,000,000 upon thefiling of a feasibility study and upon the start of commercialproduction, respectively. The milestone payments may be paid in cashor through the issuance of shares, at the Company’s discretion, andshall be deemed to be an advance to the vendors to be deducted againstfuture royalty payments. A finder’s fee of $17,500 is payable to anarm’s length party in connection with the Agreement. The Agreementremains subject to the approval of the TSX Venture Exchange.
About Madoro
Madoro Metals Corp. (MDM | TSXVenture Exchange; MSTXF | OTC) is an emerging resource company engaged in the evaluation,acquisition, and exploration of mineral properties in Mexico andCanada. The C ompany isengaged in the exploration of three gold-silver projects in the stateof Oaxaca, Mexico. The Yautepec, Magdalena and Rama de Oro projectseach consist of large epithermal systems that are highly prospectivefor precious metals in structural and geologic setting like those ofnearby producing mines. Madoro also owns a 50% interest in the Ralleaumineral property in the Urban Barry District, Lebel-sur-Quévillonarea of Quebec. For further information, investors and shareholdersare invited to visit the Company’s website at www.madorometals.com , call the office at 1-604-681-1568, tollfree at 1-877-377-6222, or send an email to info@madorometals.com
QAQC and Qualified Person
The scientific and technical information that forms thebasis for parts of this press release were reviewed and approved byJohn Langton (P.Geo.), who is a Qualified Person (QP) as defined byNational Instrument 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS
“DUŠAN BERKA”
Dušan Berka, P. Eng., President & CEO
Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this release.
This news release contains certain"forward-looking statements" within the meaning of Canadiansecurities legislation, including statements relating to a breach ofthe option agreements and the Company’s legal action to enforce itsentitlement to the Rama de Oro and Magdalena projects. Although theCompany believes that such statements are reasonable based on currentcircumstances, it can give no assurance that such expectations willprove to be correct. Forward-looking statements are statements thatare not historical facts, and by their nature, refer to future events.The Company cautions that forward-looking statements are based on thebeliefs, estimates andopinions of the Company's management on the date the statements aremade, and they involve a number of risks and uncertainties, includingthe possibility the Company may not be successful in its legal actionto enforce the performance of the option agreements.
There can be no assurance that suchstatements will prove to be accurate, as actual results and futureevents could differ materially from those anticipated in suchstatements. Accordingly, readers should not place undue reliance onforward-looking statements. The Company disclaims any intention orobligation to update or revise any forward-looking statements, whetheras a result of new information, future events or otherwise, except asrequired by law or the policies of the TSX Venture Exchange. Readersare encouraged to review the Company’s complete public disclosurerecord on SEDAR at www.sedar.com.
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