92 Resources cuts deal to buy Yellowknife-area lithium claims
Last updated 3/6/2016 at Noon
92 Resources Corp. March 1 said it has entered into an agreement to acquire the Hidden Lake lithium property in the Northwest Territories.
Located roughly 40 kilometers (25 miles) northeast of Yellowknife, the Hidden Lake property consists of about 1,100 hectares (2,720 acres) of mineral claims prospective for spodumene-bearing lithium pegmatites.
The lithium potential of pegmatites within the Yellowknife area was first recognized in the mid-1950s, when a number of the region's pegmatites were sampled and found to contain highly anomalous concentrations of lithium.
Prior to 1955, small shipments of lithium ore were reported for two deposits within the region.
It was also during this time that pegmatites were identified at the Hidden Lake property.
Despite the introduction of low-cost production from lithium brine deposits, 92 Resources said spodumene-bearing pegmatites continue to be an important supply of lithium.
The company also pointed out that in many lithium pegmatite districts, including the Yellowknife district, other rare and specialty-metals have been recovered.
Tin, beryllium, tantalum and niobium are often associated with spodumene pegmatite deposits.
The LU#12 pegmatite at Hidden Lake was previously mapped and sampled over an approximate exposure that measures 10 by 300 meters.
Seven samples were collected from surface trenches, and contained between 1.37 and 3.01 percent lithium oxide.
The very high grades of lithium were attributed to observed concentrations of coarse-grained spodumene.
Crystals up to 36 inches long were noted, with visual estimates across the dyke(s) in some places of 20 to 35 percent.
92 Resources said its initial fieldwork, expected to get underway this spring, will consist of mapping and sampling all known pegmatites at the property to assess grade and mineralogy, and approximate surface dimensions of the pegmatites.
To acquire 100 percent interest in Hidden Lake from DG Resource Management Ltd., Zimtu Capital Corp. and Michael V. Sklavenitis, 92 Resources have agreed to: pay a C$5,000 non-refundable deposit upon execution of the agreement to DG Resource (paid); issue 1 million common shares to DG Resource, 500,000 shares to Zimtu and 500,000 shares to Sklavenitis; pay DG Resource project acquisition costs of C$50,000; pay an additional C$35,000 to DG Resource in one year; issue an additional 1 million common shares to DG Resource, 500,000 shares to Zimtu and 500,000 shares to Sklavenitis in one year; and invest C$250,000 on exploration expenditures by the end of September, plus an additional C$250,000 of exploration expenditures prior to May 31, 2017.
The agreement is subject to a 2 percent net smelter return, of which 92 Resources has the right to purchase 1 percent from DG Resource within five years for C$2 million per property.
92 Resources also said it has arranged a non-brokered private placement of up to 6 million units at C5 cents each for gross proceeds of up to C$300,000.
Each unit will consist of one common share of the company and one half of a transferable purchase warrant.
Each warrant will permit the holder to acquire an additional 92 Resources share for C10 cents for a period of two years after closing.
The company intends to use the net proceeds from the financing for general working capital and expenditures on the Hidden Lake property.