(TheNewswire)
Vancouver, BC - TheNewswire - August 21, 2023 - Cullinan Metals Corp. (CSE:CMT) (OTC:CMTNF) (FWB:7KO) (" Cullinan " or the " Company ") is pleased to announce that ithas signed non-binding letters of intent (the “ LOI ”), with twovendors (“ Vendors ” or individually, “ Vendor One ” and“ Vendor Two ”) to acquire a 100% interest in and to a series of highlyprospective lithium mineral properties (the " Properties ")located in Northwestern Ontario.
The LOI with Vendor One is dated July 26, 2023, and itincludes a series of mineral projects which are commonly referred toas “Flower Falls”, “Lily Pad”, “Dory Ariel-Lake”, “WestHaig”, “East Haig”, “Ratte Lake” and “Flash Lake North”.
The LOI with Vendor Two is dated July 31, 2023, and itincludes two mineral projects that are commonly referred to as“Waspesi” and “North Maskerine”.
The Properties:
The Flower Falls, Dory - Aerial Lake, West Haig, EastHaig, and Flash Lake properties are located in a lithium-favorablegeological setting in the vicinity of the Georgia Lake, Mavis Lake,Separation Rapids and GT1’s Root Lake properties in NorthwesternOntario where lithium prospects and deposits have been discovered.Geologically, t he properties are hosted withinmetasediments of the English River Subprovince between twomuscovite-bearing peraluminous granites. Lithium has been the primarymineral of economic interest in this area and the lithiummineralization style is dominantly hosted within spodumene-bearingpegmatite dykes and sills. The pegmatites of thearea seem to be of magmatic origin and are generated by theprogressive crystallization of granitic magma. They usually appear asloosely tabular dykes and sills, attenuated lenses, and smallirregular-shaped bodies. Metasediments make excellent hosts forlithium-bearing pegmatites. The deposit model for the area indicatesthat rare-element lithium-cesium-tantalum (Li, Cs, Ta) pegmatites canfractionate up to 10km away from their parent granite (Breaks et al.,2003).
Lilypad is directly adjacent to significant Ta Cs Rbmineralization. The closest significant mineralized outcrop onLillypad is the JJ Dyke in adjacent property to the SE. Near thesouthwest edge of the property, on OGS map 992 are some small outcropsthat are noted to be pegmatites. No previous drill holes orgeochemistry was found in the project area. Very minimal work has beendone on these projects.
The lake sediment sampling data collected by theOntario Geological Survey indicates that the English River Subprovinceis host to lithium, yet it is vastly unexplored for LCT-pegmatites.Lake sediment lithium sample results suggest the muscovite-bearinggranite is fractionating towards the northeast.
Terms of LOIs:
Pursuant to the terms of the LOIs, the Company wasgranted the right to conduct a full due diligence investigation on theProperties. This includes the right to visit the Properties and toconduct preliminary sampling and exploration work to the extentpermitted by applicable mining laws.
Upon discovery of spodumene mineralization on any ofthe Properties (the “ Discovery ”), the relevant Vendor and theCompany will execute either:
a) An assignment and assumptionagreement (the “ OptionAgreement ”) pursuant to which the Vendor willassign to the Company all rights and interests to the propertypurchase options agreements; and/or
b) A property purchase agreement(the “ PurchaseAgreement ”) pursuant to which the Vendor willgrant all rights and interests in and to the Properties toCullinan.
The considerations for the Option Agreement and/orPurchase Agreement will be negotiated between the Vendor and Cullinanimmediately after the Discovery.
Marc Morin, CEO, said, "We are very excited tohave entered into the LOIs. The Properties are highly prospective forlithium and also give Cullinan shareholders the opportunity ofdiscovery across nine (9) different locations in NorthwesternOntario.” Marc Morin continued, “There will be no payments orshare issuances until the Discovery.”
The scientific and technical information contained inthis news release has been reviewed and approved by Afzaal Pirzada,P.Geo., a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure forMineral Project s.
The transactions are arms-length transactions and willnot constitute a fundamental change or result in a change of controlof the Company within the meaning of the policies of the CSE.
The transactions are subject to conditions precedentincluding, but not limited to, completion of due diligence, enteringinto an Option Agreement and/or Purchase Agreement, satisfaction ofthe conditions negotiated therein and receipt of all necessaryregulatory approvals. There can be no assurance that an OptionAgreement and/or Purchase Agreement will be entered into or that anacquisition will be consummated on the terms or timeframe currentlycontemplated, or at all.
On behalf of the Company,
CULLINAN METALS CORP.
Marc Enright-Morin
CEO
(604) 669-9788
About CullinanMetals 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.
CautionaryStatement
The information about adjacent lithium prospects anddeposits in this news release is taken from publicly availableinformation online. The Company has not been able to independentlyverify the information contained. The information is not necessarilyindicative of the mineralization of the properties, which are subjectof this news release.
Forward-lookingstatements
Forward-looking information in this news releaseincludes statements regarding assumptions that are subject tosignificant risks and uncertainties, including assumptions that allconditions to the closing of the proposed transactions will besatisfied and that the proposed transactions 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 transactions, the risk that theproposed transactions are not approved or completed on the terms setout in the LOIs or that an Option Agreement and/or Purchase Agreementwill not be entered into in connection therewith.
Although the Company believes that the assumptions andfactors used in preparing the forward-looking information arereasonable, undue reliance should not be placed on such informationand no assurance can be given that such events will occur in thedisclosed time frames or at all. New risk factors emerge from time totime, and it is impossible for the Company’s management to predictall risk factors, nor can the Company assess the impact of all factorson Company’s business or the extent to which any factor, orcombination of factors, may cause actual results to differ from thosecontained in any forward-looking information.
The forward?looking statements set forth hereinconcerning the Company reflect management's expectations as at thedate of this news release and are subject to change after such date.The Company disclaims any intention or obligation to update or reviseany forward?looking statements, whether as a result of newinformation, future events or otherwise, other than as required bylaw.
Neither the Canadian Securities Exchange nor its MarketRegulator (as that term is defined in the policies of the CSE) acceptsresponsibility for the adequacy or accuracy of thisrelease.
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