(TheNewswire)
Vancouver, BC - TheNewswire - December 13, 2023 - Cullinan Metals Corp. (CSE:CMT) (OTC:CMTNF) (FWB:7KO) (" Cullinan " or the " Company ") is pleased to announce that ithas entered into a non-binding Letter of Intent (the “ LOI ”) with AirCarbon Raw Materials Inc. (“ Air Carbon ”) whereby Cullinan has agreed tooption to Air Carbon the Lac des Îles west graphite property (the“ Property ”) in the Mont Laurier Region, Quebec. The Property issubject to a property option agreement (the “ Option Agreement ”)between Cullinan and Geomap Exploration Inc. (“ Geomap ”), and AirCarbon may acquire a 100% interest in the Property by reimbursingCullinan all costs it has incurred under the Option Agreement and byassuming all obligations to Geomap under the Option Agreement.
Pursuant to the terms of the LOI, Air Carbon andCullinan will enter into a definitive agreement (the “ Agreement ”) whichwill include the following consideration:
1. Deliver toCullinan the following:
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$175,000 on signing of the Agreement;
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Approximately $230,000 representing all costs (optionpayments and exploration expenditures) incurred by Cullinan on theProperty; and
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2,500,000 common shares of Air Carbon.
2. Assume thefollowing obligations set out in the Option Agreement withGeomap:
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$100,000 cash payments on or before September 22,2024;
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Common shares of Air Carbon with a value of $200,000 onSeptember 22, 2024; and
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Exploration expenditures of $125,000 by September 22,2024 and $250,000 by September 22, 2025.
The Property consists of 43 mineral claims in onecontiguous block covering approximately 2276 hectares, on NTS sheet31J05. The Property is located adjacent to the north and west of theLac des Îles (“ LDI ”) graphite mine and mill owned byNorthern Graphite Corp. (TSX-V: NGC). Production capacity at LDI is25,000 tonnes of graphite annually.
The Company has recently completed a ground explorationprogram at the Property. The primary objective of this program was toconduct a thorough ground assessment of the two highly promisingairborne geophysical targets, T1 and T2, situated just north of theLDI mine. This exploration effort yielded positive results, as itrevealed the presence of graphite mineralization that sharesgeological characteristics with LDI. Notably, the graphite contentdiscovered typically falls within the range of 1-15% Cg, occasionallyaccompanied by thin veins of massive graphite. For more detailedinformation, please refer to Cullinan's news release dated December11, 2023.
Marc Morin, CEO, said, “We are very pleased to haveAir Carbon explore and advance the Lac des Îles graphite project.This allows Cullinan to focus on its objectives of exploring andadvancing its lithium projects and acquiring additional lithiumproperties in international jurisdictions.”
About the Lac-des-Îles West GraphiteProperty
The Property is in Bouthillier township in Saint-Aimé-du-Lac-des-Îles area adjacent to the western and northern limit of the LDIGraphite Mine approximately 17 kilometers southwest of the town ofMont-Laurier on NTS map sheet 31J05. The Property is locallyaccessible through a series of forestry service roads and the mainVillage Road 0 (Chemin du Village 0) that cuts through the property,connecting the property to Highway #309 which isabout two kilometers east of the property. Geologically, the Lac-des-Îles West Graphite property is within a geological settingvery similar to the LDI Graphite Mine. The LDI Graphite Mine isassociated with paragneisses, biotite gneisses and marbles. The areais mainly underlain by Precambrian metasedimentary rocks of theGrenville Series comprised of quartzofeldspathic, garnetiferousparagneiss, and marble beds.
The LOI is an arms-length transaction. Closing of thetransaction is subject to conditions precedent as is customary fortransactions of a similar nature, including but not limited tocompletion of due diligence, negotiation of a definitive agreement,satisfaction of the conditions negotiated therein and receipt of allnecessary regulatory approvals, including, as applicable, all requiredfilings with the Canadian Securities Exchange. There can be noassurance that a definitive agreement will be entered into or that thetransaction will be consummated on the terms or timeframe currentlycontemplated, or at all.
Afzaal Pirzada, P.Geo., a “Qualified Person” forthe purposes of National Instrument 43-101 - Standards of Disclosure for MineralProjects , has reviewed and approved thescientific and technical information contained in this newsrelease.
On Behalf of the Company,
CULLINAN METALS CORP.
Marc Enright-Morin
CEO
(604) 669-9788
About Cullinan Metals Corp.
Cullinan Metals Corp. is a Canadian mining andexploration company focused on the development of energy metals. Witha strong emphasis on key energy resources such as copper, graphite,and lithium assets, Cullinan is dedicated to unlocking the potentialof these resources globally.
Forward-lookingstatements
Forward-looking information in thisnews release includes statements regarding assumptions that aresubject to significant risks and uncertainties, including assumptionsthat all conditions to the closing of the proposed transaction will besatisfied and that the proposed transaction will be completed, inwhole or in part, on the terms set forth in the LOIs. Theforward-looking information reflects management's current expectationsbased on information currently available and are subject to a numberof risks and uncertainties that may cause outcomes to differmaterially from those discussed in the forward-looking information.Such risk factors may include, among others, the risk that requiredapprovals and the satisfaction of material conditions are not obtainedin connection with the proposed transaction, the risk that theproposed transaction is not approved or completed on the terms set outin the LOI or that an Option Agreement and/or Purchase Agreement willnot be entered into in connection therewith.
Although the Company believes thatthe assumptions and factors used in preparing the forward-lookinginformation are reasonable, undue reliance should not be placed onsuch information and no assurance can be given that such events willoccur in the disclosed time frames or at all. New risk factors emergefrom time to time, and it is impossible for the Company’s managementto predict all risk factors, nor can the Company assess the impact ofall factors on Company’s business or the extent to which any factor,or combination of factors, may cause actual results to differ fromthose contained in any forward-looking information.
The forward-looking statements setforth herein concerning the Company reflect management's expectationsas at the date of this news release and are subject to change aftersuch date. The Company disclaims any intention or obligation to updateor revise any forward-looking statements, whether as a result of newinformation, future events or otherwise, other than as required bylaw.
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