Lancaster Resources Signs Definitive Agreement to Acquire Lithium Project in Quebec's Prolific James Bay Region
Lancaster Resources Signs Definitive
Agreement to Acquire Lithium Project in
Quebec's Prolific James Bay Region
Vancouver, British Columbia--(Newsfile Corp. - August 31, 2023) -
Lancaster Resources Inc. (CSE:
LCR) (OTC Pink: LANRF) (FSE: 6UF0)
("
Lancaster
"), is pleased to announce that on August 29,
2023,
Lancaser entered into a definitive agreement (the "
Agreement
") to acquire 100% of the Trans
Taiga Lithium Project (the "
Property
") in the Eeyou Istchee James Bay region of Quebec. The Property,
hosting several historical pegmatite samples, lies ~120 km west of Patriot Battery Metals' Corvette
Project, ~74 km west of Winsome Resources' Cancet Project, and a few kilometers east of Loyal
Lithium's Brisk Lithium Project.
The Trans-Taiga Lithium Project.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7646/179164_0a87920cb415aaa5_001full.jpg
Acquisition Highlights
The Trans-Taiga Lithium Project.
The Property covers 1,432 hectares and is located along the
boundary between La Grande and Opinaca Subprovinces. Subprovince boundaries are often
delineated
by deep-rooted crustal features filled by late-stage intrusives including pegmatites.
The Property is 120 km west of Patriot Battery Metals' Corvette Project, and roughly 74 km west of
Winsome Resources' Cancet Project. The Corvette Project is notable for its hard rock lithium project
presenting lithium grades up to 5.10% lithium oxide (Li
2
O). Winsome's Cancet reported grades up to
5.6% Li
2
O.
Additionally, Loyal Lithium's Brisk Project, with its six separate claim blocks, reports that Block 1,
located just a few kilometers west of the Property, holds the greatest lithium potential.
The Lithium District in Eeyou Istchee
James Bay
Quebec, is rapidly becoming one of the world's
leading lithium districts, boasting 10 advanced projects and multiple early-stage discoveries. The
Whabouchi mine is the 7th largest lithium deposit worldwide, with a Mineral Resource measuring 36.6
Mt at 1.3% Li
2
O, according to
www.mining-technology.com
.
Geology.
Pegmatites are confirmed to be present on the Property, as recorded in the provincial
government's geological databases, SIGEOM. The documented mineral content includes garnets,
muscovite, and tourmaline, all located within a white pegmatite in the Property's northwestern region
along the Trans-Taiga Road. Further along this road, the pegmatite exhibits a graphic texture,
characterized by quartz-feldspar, and it also contains sizable feldspar megacrysts (up to 6cm).
Strategic Acquisition Diversifies Position.
With the acquisition of the Property, Lancaster diversifies
its exploration projects. Lancaster's focus expands from its existing lithium brine exploration at the Alkali
Flat Project in New Mexico to include hard rock lithium exploration in Quebec's James Bay region. This
strategic move enhances Lancaster's exploration capabilities and geographical diversity, positioning it
to unlock different types of lithium resources in varied geological settings.
Planned Work Program.
Lancaster plans to embark on an exploration campaign on the Property with a
goal to identify lithium-rich areas through geophysical programs, detailed geological mapping, and
evaluation of the lithium concentration through sampling and geochemical analysis.
Property Access.
Year-round access by road via Trans-Taiga Road which transects the Property. The
Property is located approximately 105 km east of the junction with the year-round James Bay Road.
Hydroelectric transmission lines transect the Property, lowering exploration costs.
Option Agreement.
Lancaster has acquired the exclusive option to acquire full ownership of the Trans
Taiga Lithium Project. The total initial payment commitment stands at $115,000, broken down as follows:
Within the first 10 business days, Lancaster will make an initial payment of $37,000. This includes
$10,000 in cash and 135,000 of Lancaster common shares at a deemed value of $0.20 per share
for payment of $27,000, which have been issued.
On each of the first, second, and third anniversaries of the agreement, Lancaster will make
additional payments of $26,000. These can be made entirely in cash or split evenly between cash
and company shares.
Beyond the initial payments, Lancaster is committed to milestone payments based on exploration
success:
An initial milestone payment of $50,000 is required if the exploration uncovers at least 10
contiguous meters of lithium-bearing spodumene with an average grade of 1.0% Li2O or greater.
Additional milestone payments of $1,000,000 will be made for each filed mineral resource
estimate showing a deposit exceeding five million metric tonnes with an average grade of 1.0%
Li2O or greater.
A 2% net smelter returns (NSR) royalty is due to the original property owners, which can be reduced to
1% if Lancaster opts to make a collective payment of $1,000,000.
Management cautions that mineralization hosted on adjacent and/or nearby properties is not necessarily
indicative of the presence of similar mineralization or geology on Lancaster's properties.
Lithium is a critical mineral to produce electric vehicle batteries and a host of other
applications that are propelling the global shift towards decarbonization and renewable
sources of energy.
Andrew Watson, PEng, a qualified person for the purposes of National Instrument 43-101 Standards of
Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information
contained in this news release.
About Lancaster Resources Inc.
Lancaster Resources is engaged in exploring energy transition metals to take advantage of the global
shift towards decarbonization and electrification. Its Alkali Flat Lithium Project, in Lordsburg, New
Mexico, USA, involves the exploration of a below-surface lithium brine target. Lancaster's goal is to
produce Climate-Positive Lithium there using direct lithium extraction technology and solar power.
Lancaster recently acquired the rights to a 100% interest in the Trans-Taiga Lithium Property located
within the James Bay lithium district of Quebec, and lying on the same fault as significant lithium
discoveries, including Patriot Metals' Corvette Property. Guiding Lancaster Resources' journey is a
skilled management and technical team, with collective involvement in over 15
commercial mineral
discoveries, and endowed with extensive experience in the creation of lithium brine targets and the
exploration and development of Lithium projects across Canada, the American West, Mexico, and South
America.
Penny White, President & Chief Executive Officer, Lancaster Resources Inc.
Tel: 604 923 6100
www.lancaster-resources.com
The Canadian Securities Exchange has not reviewed, approved nor disapproved the contents of this
news release.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking information. These
statements relate to future events, or Lancaster's future performance. The use of any of the words
"could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements
relating to matters that are not historical facts are intended to identify forward-looking information and
are based on Lancaster's current belief or assumptions as to the outcome and timing of such future
events. Actual future results may differ materially. In particular, the ability of Lancaster to execute its
exploration plans, ability to enter into a long form agreement for the acquisition of the Trans Taiga
Lithium Propety, retain key personnel, identify, acquire, explore, and develop high-quality mineral-rich
properties and integrate sustainable energy sources and innovative technologies for climate-positive
resource production constitute forward-looking information. Actual results and developments may
differ materially from those contemplated by forward-looking information.
Readers are cautioned not to place undue reliance on forward-looking information. The statements
made in this press release are made as of the date hereof. Lancaster disclaims any intention or
obligation to publicly update or revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as may be expressly required by applicable securities
laws.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/179164