(TheNewswire)
Vancouver, B.C. – TheNewswire - August 23, 2023 -Cullinan Metals Corp. (CSE:CMT) (OTC:CMTNF) (FWB:7KO)(" Cullinan " or the " Company ") is pleased to announce thatfurther to its news release dated August 21, 2023, it has entered intoanother non-binding letter of intent (“ LOI ”) with a vendor(“ Vendor”) to acquire a 100% interest in and to a series of highlyprospective lithium mineral properties (the " Properties ")located in Northern Quebec.
The LOI is dated July 26, 2023, and it includes aseries of mineral projects located in Quebec, commonly referred toas “James Bay Pegmatite”, “James Bay Spodume”, “VSLithium”, “VN Lithium”, and “Wells Lake”.
The Properties
Geologically, James Bay Pegmatite and James BaySpodumene are located in the Superior geological province, whichconsists predominantly of amphibolite grade mafic to felsicmetavolcanics, metasediments and minor gabbroic intrusions. Pegmatitesoccur as sharply bounded homogeneous to zoned bodies within igneous ormetamorphic host rocks.
VS Lithium and VN Lithium are situated on the Archean Preissac-Lacorne batholith, a syn- topost- tectonic intrusion that was emplaced in the Southern VolcanicZone of the Abitibi Greenstone Belt of the Superior Province ofQuebec. In this region, pegmatitic and aplitic dykes occur inmuscovite granite, particularly near its north and south contactswhere they constitute the bulk of the exposed rock. Generally, thebest lithium mineralization can occur in the north and east strikingpegmatite dykes.
The deposit model for the area is that the target lithium mineralization is associated withlithium-cesium-tantalum (LCT) type pegmatites which are generallylocated in the upper parts of the pegmatites. LCT pegmatites are associated with S-type, peraluminous(Al-rich), quartz-rich granites. S-type granites crystallize from amagma produced by partial melting of preexisting sedimentary sourcerock.
Wells Lake is a part of the Grenville Series of rocks which are mainly comprised ofquartzofeldspathic, garnetiferous paragneiss and limestone / marblebeds. Quartzites are the least abundant of rocks in this Series. Theigneous rocks which have invaded the metasedimentary sequence consistof gabbros, monzonites, anorthosites and diabase.
LOI Terms
Pursuant to the terms of the LOI, 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 andassumption agreement (the “ Option Agreement ”) pursuant to which theVendor will assign to the Company all rights and interests to theproperty purchase options agreements; and/or
b) A propertypurchase agreement (the “ Purchase Agreement ”) pursuant to which theVendor will grant 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.
"With all the discoveries in the James Bay regionand established lithium deposits in the Abitibi area, we wanted ourshareholders to have exposure in this area,” said MarcEnright-Morin, CEO. “The transaction is similar to what we did inOntario, no dilution and no payments 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 transaction is an arms-length transaction 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 transaction is 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 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 this news releaseincludes statements regarding assumptions that are subject tosignificant risks and uncertainties, including assumptions that allconditions 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 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 this release.
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