(TheNewswire)
Vancouver, British Columbia – TheNewswire - January 12, 2023 –Tearlach Resources Limited (TSXV:TEA) (OTC:TELHF) (FRANKFURT:V44)( “ Tearlach” or the “ Company ”) ispleased to announce that it has signed an option agreement (the“ OptionAgreement ”) to acquire a 100% interest in theclaims groups within the CV lithium trend in Quebec (the “Shelby Properties ”)
-
The Shelby Properties are adjacent to Patriot BatteryMetals Inc.’s (TSXV: PMET) (“ PMET ”) Corvette Lithium Property located inthe James Bay Region of Quebec (the CorvetteProperty ”) and Winsome Resources Ltd.’s(ASX: WR1) (“ Winsome ”) Cancet discovery drill hole (the“ Cancet Property ”) .
-
The Shelby Properties also cover approximately 11,226hectares. The region has gravel highway access and an airport at thepower generating station at La Grande Quatre. (Figure 1).
“These strategic acquisitions in Quebec add to ourgrowing portfolio of high potential lithium properties in one of mostprolific lithium jurisdictions in Canada. The “Shelby Project”properties, located adjacent to PMET’s Corvette deposit andWinsome’s Cancet discovery, are just another example of our abilityto acquire potential company builder properties through a highlyexperienced team and access to our unique pipeline. We look forward toboots-on-the-ground execution in the very near future.” commentedCEO Morgan Lekstrom.
CEO Morgan Lekstrom further commented, “The CorvetteLithium Trend is an emerging spodumene pegmatite district discoveredby PMET in 2017. PMET’s best drill intercept to date of 1.65%Li 2 O over 159.7 metresincluding 4.12% Li 2 O over9.0 metres as reported in their press release dated August 31, 2022,supports Tearlach’s acquisition strategy and overall thesis inbuilding a leading lithium company.”
Figure 1: Tearlach’s Quebec properties overview map “The ShelbyProject”
The “Shelby Project” consists of six properties:Patriot West (2 claim blocks), Patriot North, Patriot North Spodumene,Patriot North East, Patriot East and Patriot South. The ShelbyProperties are within theLa Grande Greenstone Belt along the La Grande and Opinaca Subprovinceboundaries.
All properties are underexplored and have been acquiredon very favourable terms by our highly experienced team with access toa unique pipeline of projects through fostered businessrelationships.
#1) The Patriot South Property (the “ PSL ”)
The PSL comprises 28 claims totalling 1,446 hectares oflithium potential claims in close proximity to several othersignificant lithium showings. The Property is located: south east ofthe Corvette Property and south west of Winsome’s Adina LithiumProject
According to Ministère de l'Énergie et des RessourcesNaturelles (the “MERN”), the property may contain spodumenepegmatites in the Suite granitique du Vieux Comptoir rockunit .
#2) The Patriot North Property(the “ PNL ”)
The PNL comprising 20claims totalling 1,023 Hectares of lithium potentialclaims , directly adjacent to the CorvetteProperty, which hosts significant mineral potential over multipledeposit types . TheCorvette Lithium Trend is an emerging spodumene pegmatite districtdiscovered by PMET in 2017. PMET’s best drillintercept to date of 1.65% Li 2 O over 159.7 metres including 4.12% Li 2 O over 9.0 metres as reported in theirpress release dated August 31, 2022 .
#3) The Patriot East Property(the “ PEL ”)
The PEL comprising 36 claims totalling 1,887 hectares,is located east of the Corvette Property.
Patriot East Property has two pegmatite outcrops ofwhich one is hosted in biotite magnetite tonalite and the other ishosted by hornblende diorite according to Quebec’s Sigeom website.
#4) Patriot North East Property (the“PNEL ”)
The PNEL comprising 44 claims totalling 2,224 hectares,is located northeast of the Corvette Property and is adjacent toMidland Exploration Inc. (TSXV: MD) and Redevances Noranda Inc.
The Patriot North East Property consists of foliatedmedium-grained biotite magnetite with white to pink pegmatite dykesidentified in 12 outcrops according to Quebec’s Sigeomwebsite.
#5) The Patriot North SpodumeneProperty (the “ PNSL ’’)
The PNSL comprising 30 claims totalling 1,530 hectares,is located northeast of the Corvette Property . The PNSL is located directlyadjacent to SOQUEM Inc.
The Patriot North Spodumene property consists offoliated fine-grained biotite magnetite tonalite with white to pinkpegmatite dykes identified in seven outcrops according to Quebec’sSigeom website. No spodumene or lithium mineralization has beenidentified on the property yet.
According to Ministère de l'Énergie et des RessourcesNaturelles (the “MERN”), the property may contain spodumenepegmatites in the Suite granitique du Vieux Comptoir rockunit.
#6) The Patriot West Property (the“PWL”)
The PWL comprising two claim blocks with 60 claimstotalling 3124 hectares, is located adjacent and near adjacent toWinsome's Cancet Property.
The Patriot West claim block south of Cancet consistsof foliated biotite-magnetite tonalite with four outcrops of pink towhite pegmatite veins according to Quebec’s Sigeom website.
The Region
The James Bay Region ofQuebec hosts existing lithium deposits, as wellas new discoveries such as the Corvette Property and Winsome’s AdinaLithium Project.
-
-
James Bay Lithium Deposit – Proven Probable Reserve37.2Mt at 1.3% Li O (Alkem Limited press releasedated Dec. 21, 2021)
-
Rose Deposit – Probable Reserve – 26.3 Mt at 0.87%Li O 138 ppm Ta (CriticalElements Lithium Corporation press release dated June 13,2022)
-
Whabouchi Deposit – Proven Probable Reserve –27.9Mt at 1.33% Li O (Nemaska Lithium Inc, NI43-101 Technical Report dated May 31, 2019)
-
Moblan Deposit– Proven Probable Reserve – 10.7Mtat 1.40% Li O (Sayona Mining Limited, dated Aug.24, 2019)
-
The Qualified Person has not verified the regionalreserve estimates listed in this press release. The QP has mentionedthe regional lithium reserves as an indication of the potential oflithium mineralization in the region. Regional reserves does notnecessarily indicate lithium mineralization on Tearlach’s Shelby Properties. Key assumptions, parameters andmethods used to prepare the reserves are given by the companies in thesources. The regional reserves are the most current reserves publiclydisclosed on the properties to the best of the QP’s knowledge.
Recent drilling by Winsome has highlighted more than160 metres of pegmatite collectively intercepted in drilling below therecently discovered Jamar outcrop at Adina (see Winsome press releasedated October 28, 2022) . In addition, mostrecent assays from the Jamar outcrop have yielded exceptional gradesof up to 4.89% Li2O (see Winsome press releasedated October 28, 2022) . Winsome has madea very important discovery in their recent drilling program at Adina,highlighting the potential for another significant lithium deposit inQuebec. The James Bay region of Quebec is an exciting emerging lithiumdistrict.
The Transaction
Pursuant to the Option Agreement, Tearlach may acquirea 100% interest in each of the 6 properties from arm’s lengthvendors by making cash payments, issuing common shares in the capitalof Tearlach (“ CommonShares ”) with milestone bonuses. An initial300,000 shares will be paid to the vendor as a one-time payment inaddition to the payments listed below per property:
Cash Payments | Value of shares to be Issued | Milestone | |
$ | $ | $ | |
Upon signing the Option Agreement | 545,454,54 | 545,454,54 | - |
1 st Year Anniversary | 545,454,54 | 545,454,54 | - |
2 nd Year Anniversary | 545,454,54 | 545,454,54 | - |
3 rd Year Anniversary | 545,454,54 | 545,454,54 | - |
Upon successful drilling result of 10 meters of 1% orgreater Li 2 O over a 6 year period | - | - | 2,000,000 |
The vendors will retain a 3% net smelter return(“NSR”) royalty on the Properties with a one-half of a percentagepoint buyback for $1 million.
The transactions contemplated by the Option Agreement,including the issuance of Common Shares thereunder, are subject to theapproval of the TSX Venture Exchange. Any Common Shares issued underthe Option Agreement will be subject to a hold period of four monthsand one day from the date of issuance in accordance with applicableCanadian securities laws.
Qualified Person
Julie Selway, Ph.D., P.Geo. reviewed and approved the technical disclosure in this newsrelease. Dr. Selway is the VP of Exploration for Tearlach Resourcesand the Qualified Person ("QP") as defined by NationalInstrument 43-101. Dr. Selway completed a Ph.D. on granitic pegmatitesin 1999 and worked for 3 years as a pegmatite geoscientist for theOntario Geological Survey. Dr. Selway has worked on numerouspegmatites over the years including: Case Lake, Gullwing-Tot Lakes,Separation Rapids, Georgia Lake and Seymour Lake pegmatites. Dr.Selway also has twenty-three scientific journal articles onpegmatites.
About Tearlach
Tearlach is a Canadian exploration company engaged inthe acquisition, exploration and development of lithium projects.Tearlach holds an interest in the Final Frontier Project, whichincludes the Pakwan / Margot Lake Claim block, which is directlycontiguous to Frontier Lithium’s Flagship Spark and Pag deposits, as well as interests in the Wesley, Harth andFerland properties, all located in the lithium hub of northwesternOntario, Canada. The Wesley Property borders Green Energy Metals’Root Lake Project, where a 24,000 m drill program is currentlyunderway. Pegmatite dykes have also been encountered on the HarthLithium Project, which is 8 kms west of the Wesley Lithium Project.Prospecting and mapping have also confirmed pegmatite dykes on theFerland Lithium Property, 10 km east of Green Technology Metals’Seymour Lake Project. Tearlach intends to explore these assets anddevelop a portfolio of projects in North America through acquisition.Tearlach’s primary objective is to position itself as the leadinglithium exploration and development company in North America.Additional information on the Company is available at the website at www.tearlach.ca .
Omnibus Option Plan Adoption
The Company has adopted a hybrid omnibus incentive plan(the “ Plan ”) which consists of a 10% rolling component for stockoptions and a fixed number component for equity awards other thanstock options, including restricted share units, performance shareunits and deferred share units. The fixed number component reservesan aggregate maximum amount of 8,144,350 shares in the capital of theCompany for future issuance. The Plan has been approved by the boardof directors of the Company and remains subject to approval by the TSXVenture Exchange (the “ TSX-V ”) and the Company’s shareholders.
If the Company elects to grant equity awards under thePlan prior to TSX-V and shareholder approval, the vesting of suchawards will, in addition to any other vesting criteria required by theCompany, be subject to disinterested shareholder approval at theCompany’s next annual general and special meeting.
Following initial shareholder approval of the Plan,shareholder approval must be obtained annually at the Company’sfuture annual general and special meetings as long as the Plan iseffective. In addition, the Plan must be submitted for TSX-V reviewand acceptance on an annual basis.
ON BEHALF OF THE BOARD OF DIRECTORS,
TEARLACH RESOURCES LTD.
Morgan Lekstrom
Chief Executive Officer
Suite 610 - 700 W. Pender Street
Vancouver, BC, Canada V6C 1G8
Tel: 604-688-5007
The Company has engaged the OGIB Corporate Bulletin(“OGIB”) to publish a series of articles on the Company over thenext six months to increase awareness of the Company, the Company willpay a fee of $200,000. OGIB is an arm’s-length party to theCompany.
Frank Lagiglia
Corporate Relations
M) 604-512-0972
Neither the TSX Venture Exchange norits Regulation Service provided (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release.
Cautionary NoteRegarding Forward-Looking Statements
This news release containsforward-looking statements and forward-looking information(collectively, “forward-looking statements”) within the meaning ofapplicable Canadian securities legislation. All statements, other thanstatements of historical fact, included herein, including, withoutlimitation, the closing of the Agreement and the exercise of theOption, and the anticipated business plans and timing of futureactivities of the Company, are forward-looking statements. Althoughthe Company believes that such statements are reasonable, it can giveno assurance that such expectations will prove to be correct.Forward-looking statements are typically identified by words such as:“believes”, “expects”, “anticipates”, “intends”,“estimates”, “plans”, “may”, “should”, “would”,“will”, “potential”, “scheduled” or variations of suchwords and phrases and similar expressions, which, by their nature,refer to future events or results that may, could, would, might orwill occur or be taken or achieved. In making the forward-lookingstatements in this news release, the Company has applied severalmaterial assumptions, including without limitation, that the Companywill receive all necessary approvals in connection with the Agreement,market fundamentals will result in sustained Lithium demand andprices, the receipt of any necessary permits, licenses and regulatoryapprovals in connection with the future development of the Propertiesin a timely manner, the availability of financing on suitable termsfor the development and continued operation of the Company’sprojects and its ability to comply with environmental, health andsafety laws.
Forward-looking statements involveknown and unknown risks, uncertainties and other factors which maycause the actual results, performance, or achievements of the Companyto differ materially from any future results, performance orachievements expressed or implied by the forward-looking information.Such risks and other factors include, among others, requirements foradditional capital, operating and technical difficulties in connectionwith mineral exploration and development activities, actual results ofexploration activities, including on the Properties, the estimation orrealization of mineral reserves and mineral resources, the fact thatthe Company’s interests in the Properties are an option only andthere is no guarantee that such interests, if earned, will be certain,the timing and amount of estimated future production, the costs ofproduction, capital expenditures, the costs and timing of thedevelopment of new deposits, requirements for additional capital,future prices of lithium, changes in general economic conditions,changes in the financial markets and in the demand and market pricefor commodities, lack of investor interest in future financings,accidents, labour disputes and other risks of the mining industry,delays in obtaining governmental approvals (including of the TSXVenture Exchange), permits or financing or in the completion ofdevelopment activities, changes in laws, regulations and policiesaffecting mining operations, title disputes, the inability of theCompany to obtain any necessary permits, consents, approvals orauthorizations, environmental issues and liabilities, and risksrelated to joint venture operations, and other risks and uncertaintiesdisclosed in the company’s continuous disclosure documents. All ofthe Company’s Canadian public disclosure filings may be accessedvia www.sedar.com , andreaders are urged to review these materials.
Readers are cautioned not to placeundue reliance on forward-looking statements. The Company does notundertake any obligation to update any of the forward-lookingstatements in this news release or incorporated by reference herein,except as otherwise required by law.
Copyright (c) 2023 TheNewswire - All rights reserved.