(TheNewswire)
August 17, 2023 – TheNewswire - Rockport,Ontario - New Age Metals Inc. (TSXV:NAM ) ; ( OTC:NMTLF ) ; ( FSE:P7J.F) (“NAM” or “Company”) is pleased toadvise that it has entered a binding term sheet with Australian juniormining company, Native Mineral Resources (NMR). Under the terms, NMRcan earn up to a 75% interest in NAM’s McLaughlin Lake Project.
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NMR has the right to acquire an initial 51% interest bycompleting C$500,000 of exploration and development activities within18 months from the Effective Date and pay C$75,000 cash payment andAUD$200,000 in NMR shares.
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NMR can earn an additional 9% interest (60%) bycompleting and additional C$500,000 (for a total of a C$1,000,000) ofexploration and development activities within 3 years from EffectiveDate, and making an additional C$100,000 cash payment and AUD$200,000in NMR shares.
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NMR can earn an additional 5% interest (65%) by makinga C$100,000 cash payment and AUD$350,000 in NMR shares which will beescrowed for 6 months.
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NMR will pay an additional C$100,000 cash payment atthe end of year 4.
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NMR can earn an additional 10% interest (75%) by makinga C$100,000 cash payment and AUD$650,000 in NMR shares escrowed for 6months. NMR must also complete a JORC compliant Mineral Resource(Indicated) 10Mt @ minimum 1.25% Li2O in Spodumene less than 150m, NMRReserve the right to continue if samples are below 1.25% Li2O inSpodumene.
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In years 4 and 5 NMR must spend a minimum additionalC$2,000,000 in this agreement for a total of C$3,000,000 inexploration dollars.
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NAM will be the field manager, anda JV Committee will be formed to approve work programs. NAM willreceive 10% on contracts under C$100,000 and 5% on contracts overC$100,000.
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NAM will receive a 2% Net Smelter Royalty on theProject with an option to buy down 1% for $2 million CAD leaving NAM a1% NSR in the project in perpetuity.
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The parties will have 24 months to negotiate and enterinto a formal farm-in and joint venture agreement based on the termspresented in the binding term sheet agreement.
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NAM will pay a finder’s fee of AUD$20,000 in regardsto this transaction.
Harry Barr, Chairman & CEO commented: “The stated objective forour newly acquired and highly prospective McLaughlin Lithium Projectwas to secure a strategic partner who is willing to develop theproject with us. Native Mineral Resources is an experienced juniormining company based in Australia who have a diverse portfolio ofexploration projects in Queensland and Western Australia. This bindingagreement comes at an opportune time in the lithium market. A secondjoint venture will add to the excellent progress NAM is making in itsManitoba Lithium division. Manitoba is becoming recognized for itsCritical Metals potential. We are glad to have the support of NMRand this mining friendly Province.”
McLaughlin Lake LithiumProject
The McLaughlin Lake Pegmatite Project is made up ofMineral Exploration License (MEL) 1028A which cover s 19,245 Ha and is currently awaitinggranting by the Manitoban Government.
MEL 1028A is held by Lithium Canada Development Inc, awholly owned subsidiary of New Age Metals Inc.
MEL 1028A is a 30 km east-west striking tenementlocated approximately 560km north of Winnipeg and 10 km south-east ofthe locality of Oxford House which is accessible by air and winterroad in the Canadian province of Manitoba.
Figure 1: Overview of McLaughlinLake Lithium Project
The McLaughlin Lake Lithium Project is located in theArchean-aged Superior Province of the Canadian Shield, which is hostto some of the most significant lithium resources in the world, mainlyin Quebec and Ontario, though the Bernic Lake Mine (Tanco Mine) islocated within Manitoba and has been mined for tantalum and caesiumsince the 1920’s, and has a reserve of 7.3 MT @ 2.76 % Li.
MEL 1028A is located within the Oxford Lake - Knee LakeGreenstone Belt along the contact between the Bayly Lake plutoniccomplex and the Hayes River Group which is comprised of basalt andgabbros with subordinate intermediate and felsic volcanic-sedimentaryrocks, in which a number of pegmatite dykes have been mapped duringhistorical government mapping campaigns.
NAM have inferred that the contact is along a regionalfault structure with the potential for additional lithium bearingpegmatites along the 30 km strike extent
Minimal historic lithium exploration has occurred inthe MEL 1028A area, and previous work has been limited to mapping andsampling which has identified numerous pegmatite outcrops with up to15 cm long spodumene crystals being mapped in the pegmatites. Severaldrillholes have been drilled in the surrounding area, though none weretargeting lithium mineralization.
Historic mapping has identified onepegmatite dyke that outcrops for 400 metres and is up to 2.2 metreswide. A Channel sample across the dyke assayed 1.32 % Li 2 Oover 1.52 metres. Additional grab samples of a second dyke returnedassays of 0.98 % and 2.87 % Li 2 O (Economic Geology Report 1985 – B. Bannatyne).
MEL 1028A also has the potential for other importantdeposit types, including volcanogenic Cu-Zn- Pb-Au-Ag, magmaticNi-Cu-PGE, intrusion-related rare metals, and orogenic Au (ManitobaGeological Survey, Report of Activities, 2015).
About Native Mineral Resource
Native Mineral Resources (ASX: NMR) is a copper-gold project generatorwith a focused approach on creating and developing company growththrough focused, rapidly executed, exploration campaigns acrosscurrent projects and the targeted acquisition of new project areas.NMR is focused on the discovery and development of economic mineraldeposits in primary geological settings to deliver company andshareholder value through a systematic and dynamic approach,incorporating innovative exploration methods, to develop itsAustralian owned assets.
About NAM
New Age Metals is a junior mineral exploration anddevelopment company focused on the discovery, exploration, anddevelopment of green metal projects in North America. The Company hastwo divisions: a Platinum Group Element division and a Lithium/RareElement division.
The PGE Division includes the 100% owned,multi-million-ounce, district-scale River Valley Project, one of NorthAmerica’s largest undeveloped Platinum Group Element Projects,situated 100 km by road east of Sudbury, Ontario. In addition to RiverValley, NAM owns 100% of the Genesis PGE-Cu-Ni Project in Alaska andplans to complete a surface mapping and sampling program in2023.
The Company’s Lithium Division is one of the largestmineral claim holders in the Winnipeg River Pegmatite Field, where theCompany is exploring for hard rock lithium and various rare elements,such as tantalum, rubidium, and cesium. The Company has announced itspreliminary $2 million 2023-2024 exploration budget that will coverthe first 4 months of the program. A larger budget has been submittedto our partner Mineral Resources Limited and we expect it to beapproved this summer. Further Exploration plans for 2023 includegeophysical surveying, summer field work (which will include mapping,lithogeochemistry, MMI soil geochemistry, biogeochemistry, channelsampling), and permits/ archaeological surveys. The Company has apartnership with Mineral Resource Limited (MRL, ASX: MIN), a topglobal lithium producer to explore and develop the Company’s lithiumproject portfolio in Southern Manitoba. Our philosophy is to be aproject generator with the objective of optioning our projects withmajor and junior mining companies through to production. The Company is activelyseeking an option/joint venture partner for our newly acquiredNorthman and South Bay Lithium Projects in northern Manitoba, and itsroad-accessible Genesis PGE-Cu-Ni Project in Alaska.
Investors are invitedto visit the New Age Metals website at www.newagemetals.com where theycan review the company and its corporate activities. Any questions orcomments can be directed to info@newagemetals.com or Harry Barr atHbarr@newagemetals.com or Farid Mammadov at Faridm@newagemetals.com orcall 613 659 2773.
QualifiedPerson
The technical information in this news release has beenreviewed and approved by Lynde Guillaume, P.Geo. (Senior Geologist,Axiom), who is a “Qualified Person” for the Company as definedunder National Instrument 43-101 – Standards of Disclosure forMineral Projects (“NI 43-101”). Lynde is a ProfessionalGeoscientist (P.Geo) who is a registered member of the ‘Engineer andGeosciences of Manitoba’ (no. 47952).
If you have not done so already, we encourage you tosign up on our website ( www.newagemetals.com ) to receive our updated news.
On behalf of the Board of Directors
“ Harry Barr”
Harry G. Barr
Chairman and CEO
Neither the TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release. Cautionary Note Regarding Forward Looking Statements:This release contains forward-looking statements that involve risksand uncertainties. These statements may differ materially fromactual future events or results and are based on current expectationsor beliefs. For this purpose, statements of historical fact may bedeemed to be forward-looking statements. In addition,forward-looking statements include statements in which the Companyuses words such as “continue”, “efforts”, “expect”,“believe”, “anticipate”, “confident”, “intend”,“strategy”, “plan”, “will”, “estimate”, “project”,“goal”, “target”, “prospects”, “optimistic” or similarexpressions. These statements by their nature involve risks anduncertainties, and actual results may differ materially depending on avariety of important factors, including, among others, the Company’sability and continuation of efforts to timely and completely makeavailable adequate current public information, additional or differentregulatory and legal requirements and restrictions that may beimposed, and other factors as may be discussed in the documents filedby the Company on SEDAR (www.sedar.com), including the most recentreports that identify important risk factors that could cause actualresults to differ from those contained in the forward-lookingstatements. The Company does not undertake any obligation to reviewor confirm analysts’ expectations or estimates or to releasepublicly any revisions to any forward-looking statements to reflectevents or circumstances after the date hereof or to reflect theoccurrence of unanticipated events. Investors should not place unduereliance on forward-looking statements.
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