International Lithium Corp. Options Raleigh Lithium Pegmatite Project, Ontario To Strategic Partner Pioneer Resources Limited
ACCESS Newswire
VANCOUVER, BC / ACCESSWIRE / July 13, 2016 /International Lithium Corp. (TSXV: ILC) (the "Company" or "ILC") is pleased to announce that the Company and strategic partner Pioneer Resources Limited ("Pioneer") have entered into an Option Agreement to advance the Company's Raleigh Lithium pegmatite project in Ontario, Canada ("Project").
Key Highlights:
Pioneer may earn an initial 51% interest in the Project by expending CAN$1.25 million on exploration activities within three years;
Currently compiling historic exploration work to design 2016 programme.
ILC strengthens their North American strategy to advance multiple lithium projects through strategic partnerships for potential development synergies.
Raleigh Option Agreement
Under the terms of the Agreement, subject to a two-week exclusivity and due diligence period:
Pioneer may earn an initial 51% interest in the Project by expending CAN$1.25 million on exploration activities within three years and paying to ILC a total of CAN$250,000 in cash and shares 50/50 over the same three years (the "First Earn-in").
Following the First Earn-in, ILC will be granted a 1.5% Net Smelter Return royalty ("NSR"), purchasable at any time for CAN$1.5 million.
Pioneer will then be granted, if ILC elects not to participate and if Pioneer elects to pursue, an option where Pioneer can earn an additional 29%, for a total 80% interest, by sole funding exploration expenditures and the production of a pre-feasibility technical report within 6 years from the completion of the First Earn-In. Thereafter the Parties will contribute on a pro-rata basis. If either Party dilutes to 15% Project Equity, their interest is converted to a 1.5% NSR.
Raleigh Lithium Pegmatite Project
The Raleigh Project is situated 7 kilometres south of the Trans-Canada Highway, 60 kilometres southeast from the Company's Mavis Project, 80 kilometres southeast from the town of Dryden, Ontario and approximately 240 kilometres northwest of Thunder Bay, an industrial centre in Ontario. The 10 unpatented claim blocks comprise a total of 464 hectares and straddle a series of pegmatites exhibiting high-grade lithium.
There were two noteworthy periods of exploration performed on the Project. One from 1999 to 2001 focussed on tantalum, while the second in 2010 was expanded to encompass lithium. These exploration campaigns included mapping, lithogeochemistry, trenching (1500m) and diamond core drilling (2817.5m in 17 holes) resulting in the identification of several substantial pegmatites and numerous smaller ones (see Company news release dated March 23, 2016 for additional details).
Highlights of previously reported drill intercepts at Raleigh are summarized in the table below. The pegmatites are moderately dipping and appear to flatten at depth.
All widths in drill core are drill widths and have not been adjusted to true widths. Grab samples are by nature selective and may not be representative of geological units. Therefore, they should not be relied upon. The Company has not yet been able to confirm historical results compiled from assessment reports and news releases filed by previous operators.
Figure 1: Core samples from previously reported drill intercepts at Raleigh
Mapping and litho-geochemical sampling indicate a pegmatite belt at least 5 km in length with evidence of highly fractionated pegmatites hosting a variety of rare metals. Additional pegmatites identified by surface exploration exhibiting significant tantalum, lithium and rubidium anomalies have yet to be drill tested.
The Upper Canada Lithium Pool
The close proximity of the Mavis and Raleigh projects presents clear strategic and operational advantages. ILC is pursuing lithium prospects with reported high grades in this region and seeking to consolidate them with the aim to identify sufficient resources in multiple prospects to potentially feed a common processing facility. The Upper Canada Lithium Pool is the anticipated geographical consolidation of projects and partnered companies hosting amenable grade, volume, access and infrastructure in order to mitigate the financial burden on any one company when advancing specific projects to reach this goal.
John Harrop, P.Geo, FGS, is a Qualified Person as defined under NI 43-101 and has supervised preparation of the technical information contained in this news release.
About International Lithium Corp.
International Lithium Corp. is an exploration company with an outstanding portfolio of projects, strong management ownership, robust financial support and a strategic partner and keystone investor Ganfeng Lithium Co. Ltd., a leading China based lithium product manufacturer.
The Company's primary focus is the Mariana lithium-potash brine project, a joint venture with Ganfeng Lithium Co. Ltd. within the renowned South American "Lithium Belt" that is the host to the vast majority of global lithium resources, reserves and production. The 160 square kilometre Mariana project strategically encompasses an entire mineral rich evaporate basin that ranks as one of the more prospective salars or 'salt lakes' in the region.
Complementing the Company's lithium brine project are three rare metals pegmatite properties in Canada known as the Mavis, Raleigh, and Forgan projects; and one project in Ireland (Avalonia project) that encompasses an extensive 50km long pegmatite belt. The Avalonia project is under option to strategic partner Ganfeng Lithium and the Mavis and Raleigh projects with strategic partner Pioneer Resources Limited. The Mavis, Raleigh and Forgan projects together form the basis of the Company's newly created Upper Canada Lithium Pool designated to focus on acquiring numerous prospects with previously reported high concentrations of lithium in close proximity to existing infrastructure.
With the increasing demand for high tech rechargeable batteries used in vehicle propulsion technologies and portable electronics, lithium is paramount to tomorrow's "green-tech", sustainable economy. By positioning itself with solid development partners and acquiring high quality grass roots projects at an early stage of exploration, ILC aims to be the resource explorer of choice for investors in green tech and build value for its shareholders.
On behalf of the Board of Directors,
Kirill Klip
President, International Lithium Corp.
For further information regarding this news release contact Caroline Klukowski (Corporate Communications) at 604.687.7551 or view the website at www.internationallithium.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Statements in this press release other than purely historical information, historical estimates should not be relied upon, including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. News release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
