Foremost Lithium Amends Lac Simard South Property Acquisition in Quebec
Foremost Lithium Amends Lac Simard South
Property Acquisition in Quebec
Vancouver, British Columbia--(Newsfile Corp. - May 9, 2023) -
Foremost Lithium Resource &
Technology Ltd.
(CSE: FAT) (OTCQB: FRRSF) (FSE: F0R0) (WKN: A3DCC8)
(
"
Foremost
Lithium
"
,
"
Foremost
"
or the "
Company
") is pleased to announce that it has entered into an
agreement
(the "
Amending Agreement
") amending the terms of
it's proposed acquisition of the Lac Simard South
Property (the "Property"), previously announced on March 20, 2023.
Under the amended terms, the
Company will acquire an aggregate of 60 claims located in the Province of Quebec, covering 8,612
acres/3,485 hectares which host 12 identified pegmatites via satellite imagery (the "
Lac Simard South
Property
") from arm's length vendors (the "
Vendors
"). In addition, Foremost has independently staked
and recorded 20 additional mineral claims which are contiguous with the borders of these 60 claims,
which resulted in an increase of Lac Simard South land package to 80 mineral claims and to the total
area to 11,482 acres/4,647 hectares.
Figure 1: Area Map With Display of Foremost's New Lac Simard South Claims*
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4689/165320_e6c8aac0f4fbf994_001full.jpg
Jason Barnard, Foremost Lithium's President and CEO, comments,
"We are pleased to move ahead
with this acquisition to plant Foremost's footprint in Quebec, one of Canada's busiest, and friendliest
mining regimes. The Company re-evaluated the acquisition and determined we would tighten the land
package that is being acquired to focus on the core, strategic claims while incurring cost-savings to
our stakeholders. We look forward to beginning our exploration and prospecting efforts this summer in
this active lithium camp."
Fig 2. Lac Simard South Claims Map
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4689/165320_e6c8aac0f4fbf994_002full.jpg
Lac Simard South Property is located approximately 90km southwest from the NAL Lithium Processing
Plant (a Piedmont/Sayona Joint Venture) which just commenced producing lithium spodumene
concentration out of its facility
1
and is situated 80km southwest of Val-D'or, an established logistics hub
for mining services. The Property is easily accessible year-round by way of well-maintained roads, with
little overburden. Quebec is a major producer of electricity and one of the largest hydropower generators
in the world.
A hydroelectric power plant is situated within the property claim block, allowing access to
grid power and low-cost hydroelectricity.
Sayona Mining Limited's Abitibi Hub, comprised of its North American Lithium, Authier Lithium and
Tansim Lithium projects located nearby, boasts a measured and indicated resource of 87.8 Mt grading
1.05% Li2O
(Source:
https://sayonamining.com.au/announcements/
March 22, 2022).
Lac Simard South
is contiguous to Sayona Mining Limited and Refined Metals Corp which has sampled 2.1% lithium (Li)
4.52% Lithium Oxide (Li2O) and 5.88% Tantalum Oxide (Ta2O5) (Ref. Report GM 36797, 1980).
https://refinedmetalscorp.com/lac-simard-property/
.
Geology
Lac Simard South property is largely underlain by the large monzodiorite batholith of Lac Simard Sud.
This batholith is pinkish grey in color and is composed of plagioclase, K-feldspar hornblende with minor
amount of epidote and quartz.
Quartz-monzodioritic dykes and sills are observed at the margin of this
intrusion. A gabbroic intrusion lies to the southwest end of the Property and hosts the Laforce showing.
This Ni-Cu showing was explored by Kerr Addison Gold Mines Ltd and more lately by Fieldex
Exploration (2007) and lies about 1km south of the Property. The Property contains 12 pegmatites
based on satellite imagery.
Acquisition Terms
Pursuant to the Amending Agreement, the Company will acquire the amended Lac Simard South
Property for aggregate cash consideration of $35,000, plus GST with $17,500 plus GST payable upon
closing and an additional $17,500 plus GST payable within 4 months after closing.
In addition, the
Company will issue a total of 535,000 shares common shares of the Company at $0.15 per common
share. There are no warrants issuable to the Vendors under the new terms. The common shares will be
subject to a hold period of four months pursuant to applicable securities laws.
Secured Note
Effective May 10, 2022, the Company entered into a secured promissory note in the principal amount of
$1,145,520.08 (the "
Loan
") with Jason Barnard and Christina Barnard (the "
Lenders
"). The Company
and the Lenders have agreed to amend the promissory note effective May 10, 2023, to extend its term
by one year and increase the interest rate to 11.35% payable in monthly installments of $8,000, with the
balance of accrued interest payable on maturity. The Loan is repayable at any time without penalty and
matures on May 10, 2024.
Each of the Lenders are senior officers of the Company, Mr. Barnard is a director of the Company, and
the Lenders are, jointly, the largest shareholder of the Company. The amendment of the terms of the
Loan constitutes a "related party transaction" under the policies of the Canadian Securities Exchange
and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI
61-101"). The Loan has no equity component and is not anticipated to have any effect of the equity
securities of the Company owned by the Lenders. The Company is relying on exemptions from the
minority shareholder approval and formal valuation requirements applicable to the related party
transactions under Sections 5.7(f) and 5.5(b), respectively, of MI 61-101. There has been no prior formal
valuation of the Loan as there has not been any necessity to do so. The Loan and the current amendment
to the terms of the Loan have been reviewed and unanimously approval by the Company's board of
directors, including the independent directors.
Technical information relating to Lac Simard South Property contained in this news release has been
approved by Isabelle Robillard, P. Geo, who is a "Qualified Person" within the meaning of National
Instrument 43-101 Standards of Disclosure for Mineral Projects.
On Behalf of the Board of Directors
Jason Barnard, President and CEO
Email:
Phone: +1 (604) 330-8067
The Canadian Securities Exchange has neither approved nor disapproved the contents of this news
release and accepts no responsibility for the adequacy or accuracy hereof.
About Foremost Lithium Resource & Technology Ltd.
Foremost Lithium is a hard-rock exploration company with over 42,000 acres located in Snow Lake,
Manitoba. It's 5 Lithium Lane Projects, Zoro, Jean Lake, Grass River, Peg North and Jol, are
strategically located to capitalize on the world's growing EV appetite and is perfectly positioned to
become a premier supplier of North America's lithium feedstock. As the world transitions towards
decarbonization, the Company's objective is the extraction of lithium oxide (Li
O), and to subsequently
play a role in the production of high-quality lithium hydroxide (LiOH), to help power lithium-based
batteries, critical in developing a clean-energy economy.
Foremost Lithium also has the Winston
Gold/Silver Property in New Mexico USA. Learn More at
www.foremostlithium.com
Follow us or contact us on social media:
Twitter:
@foremostlithium
Linkedin:
https://www.linkedin.com/company/foremost-lithium-resourcetechnology/mycompany
Facebook:
https://www.facebook.com/ForemostLithium
Forward-Looking Statements
This news release contains "forward-looking statements" and "forward-looking information" (as defined
under applicable securities laws), based on management's best estimates, assumptions, and current
expectations. Such statements include but are not limited to, statements with respect to the plans for
future exploration and development of the Company's properties and the acquisition of additional
exploration projects. Generally, these forward-looking statements can be identified by the use of forward-
looking terminology such as "expects", "expected", "budgeted", "forecasts", "anticipates" "plans",
"anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective",
"prospective", and similar expressions, or that events or conditions "will", "would", "may", "can", "could"
or "should" occur. These statements should not be read as guarantees of future performance or results.
Such statements involve known and unknown risks, uncertainties and other factors that may cause actual
results, performance or achievements to be materially different from those expressed or implied by such
statements, including but not limited to: risks related to the receipt of all necessary regulatory and third
party approvals for the proposed operations of the Company's business and exploration activities, risks
related to the Company's exploration properties; risks related to international operations; risks related to
general economic conditions, actual results of current exploration activities, unanticipated reclamation
expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of
commodities including lithium and gold; fluctuations in foreign currency exchange rates, increases in
market prices of mining consumables, possible variations in reserves; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on
insurance coverage and other risks of the mining industry; delays in the completion of exploration,
development or construction activities, changes in national and local government regulation of mining
operations, tax rules and regulations, and political and economic developments in jurisdictions in which
the Company operates. . Although the Company has attempted to identify important factors that could
cause actual results to differ materially from those contained in forward-looking statements, there may be
other factors that cause results not to be as anticipated, estimated or intended. There can be no
assurance that such statements will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. The forward-looking statements and forward-
looking information are made as of the date hereof and are qualified in their entirety by this cautionary
statement. The Company disclaims any obligation to revise or update any such factors or to publicly
announce the result of any revisions to any forward-looking statements or forward-looking information
contained herein to reflect future results, events, or developments, except as require by law. Accordingly,
readers should not place undue reliance on forward-looking statements and information. Please refer to
the Company's most recent filings under its profile at
www.sedar.com
for further information respecting
the risks affecting the Company and its business.
*Resource estimates contained on map in this press release were directly sourced from:
https://sayonamining.com.au/projects/authier-project/
https://sayonamining.com.au/projects/tansim-project/
https://sayonamining.com.au/projects/moblan-project/
1
https://www.nsenergybusiness.com/news/first-spodumene-concentrate-nal/
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/165320