(TheNewswire)
Vancouver, British Columbia / TheNewswire / August 18, 2022 – Gold Lion Resources Inc. (“Gold Lion”or the “Company”) (CSE:GL) (OTC:GLIOF) (FWB:2BC) is pleasedto announce the development and exploration of a manganese mine inMorocco by signing a letter of intent dated August 10, 2022 (the“ LOI ”) toacquire a 50% interest in a mining license (the “ License ”) fromErmazon SARL (“ Ermazon ”), a wholly owned subsidiary of Elcora Advanced MaterialsCorp. (“ Elcora ”). Ermazon has applied for the exploitationlicense of the manganese concession which will fortify ongoingstrategies to supply battery and electric vehicle end-users.
The manganese site was a former French mine that was in operation fordecades that Ermazon and Elcora intend to leverage on-siteinfrastructure and facilities. Up to 600 tonnes of raw ore from themine is ready for processing; this development and exploration projectwill determine whether an open pit or underground mining operation islaunched.
Manganese is an electric vehicle or “EV” metal used to producebatteries for electric vehicles and other renewable energyapplications such as electricity grid storage for Tesla’s Powerwallbatteries. Its status as a battery metal is expected to propel itsdemand in the wake of what experts predict will be a widespreadtransition to electric vehicle’s driven by global climate changepolicy goals and zero-emission targets.
Manganese represents a critical link in the lithium-ion battery supplychain. Electrolytic manganese dioxide (EMD) is an upgraded form ofmanganese that serves as a key ingredient of lithium-ion, alkaline andzinc-manganese batteries.
Manganese sulfate prices have risen by30% from $867 per tonne in January 2021 to $1,128 in June 2021 and areexpected to continue to strengthen over the next decade. “Prices arelikely to keep rising in the second half of the year as demand forbatteries is projected to grow. With the manganese sulphate marketcurrently projected to be in a deficit, prices are likely to rise tosupport new refinery projects in order to meet demand by 2024.”(BloombergNEF).
The global manganese alloy market size was USD 25,615.7 million in2019 and is projected to reach USD 42,004.4 million by 2027,exhibiting a CAGR of 7.4% during the forecast period. Manganese (Mn)alloys are mixtures of metals and metalloids along with the manganesemetal [Fortune Business Insights Ref ID 101569].
Guy Bourgeois, CEO of the Company commented, “Gold Lion has emergedfrom a junior exploration company to a battery materials supplierservicing the existing and new giga factories around the globe. Theglobal manganese market is expected to grow at a considerable rate andprojected prices will reinforce Gold Lions’ mining and developmentstrategy to supply battery metals to meet current demands.”
Terms of the Acquisition
As consideration for a 50% interest in the License, theLOI contemplates the following cash payments and share issuance bemade in tranches: (i) a cash payment of $75,000 and the issuance ofcommon shares of the Company (the “ Shares ”) equal to$250,000 for an initial 25% interest in the License; (ii) a cashpayment of $125,000 for a further 15% interest in the License; and(iii) a cash payment of $50,000 for remaining 10% interest in theLicense.
The deemed price of the Shares to be issued will bedetermined based on the signing of a definitive agreement, and will beissued at a price that is at or greater than $0.05 and the minimumprice allowed pursuant to the policies of the Canadian SecuritiesExchange (the “CSE”). The Shares will be subject to a minimum holdperiod of four months and one day from the date of issuance.
The proposed acquisition will be completed pursuant toavailable prospectus exemptions in accordance with applicablesecurities legislation.
The proposed acquisition is subject to receipt of allnecessary regulatory approvals, including, as applicable, approval ofthe CSE, completion of due diligence reasonable or customary in atransaction of a similar nature, and entering into a definitiveagreement, among other conditions. The proposed acquisition would bean arms-length transaction for the Company and would not constitute afundamental change or result in a change of control of the Company,within the meaning of the policies of the CSE.
About Gold Lion Resources Inc.
Gold Lion Resources Inc. is a mineral exploration company activelyinvolved in the exploration of its precious metal focused portfolio including Black Lake, Cuteye and Fairview Propertieslocated in British Columbia, Saskatchewan and Idaho, USA. Formore information please visit: https://goldlionresources.com/ .
ON BEHALF OF THE BOARD OF DIRECTORS
Guy Bourgeois, CEO
T: 902.225.8881
The CSE and Information Service Provider have not reviewed and does not accept responsibility for the accuracy or adequacy of thisrelease.
This news release contains “forward-looking information” withinthe meaning of applicable Canadian securities legislation. Often, butnot always, forward-looking information and information can beidentified by the use of words such as “plans”, “expects” or“does not expect”, “is expected”, “estimates”,“intends”, “anticipates” or “does not anticipate”, or“believes”, or variations of such words and phrases or state thatcertain actions, events or results “may”, “could”,“would”, “might” or “will” be taken, occur or be achieved.Forward-looking information in this news release includes statementsregarding: assumptions that are subject to significant risks anduncertainties, including assumptions that all conditions to theclosing of the proposed acquisition will be satisfied and that theproposed acquisition will be completed on the terms set forth in theLOI. The forward-looking information reflects management's currentexpectations based on information currently available and are subjectto a number of risks and uncertainties that may cause outcomes todiffer materially from those discussed in the forward-lookinginformation. Such risk factors may include, among others, the riskthat required approvals and the satisfaction of material conditionsare not obtained in connection with the proposed acquisition, the riskthat the proposed acquisition is not approved or completed on theterms set out in the LOI or that a definitive agreement will beentered into in connection therewith. Although the Company believesthat the 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. Factors that could causeactual results or events to differ materially from currentexpectations include: (i) adverse market conditions; and (ii) otherfactors beyond the control of the Company. 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. Theforward-looking information included in this news release are made asof the date of this news release and the Company expressly disclaimsany intention or obligation to update or revise any forward-lookinginformation whether as a result of new information, future events orotherwise, except as required by applicable law. Additionalinformation identifying risks and uncertainties that could affectfinancial results is contained in the Company’s filings withCanadian securities regulators, which are available at www.sedar.com.
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