K9 Gold Closes Transaction and Adds 3300 Ha to the JB Lithium Project, N. Quebec.
K9 Gold Closes Transaction and Adds 3300 Ha
to the JB Lithium Project, N. Quebec.
Vancouver, British Columbia--(Newsfile Corp. - June 5, 2023) -
K9 Gold Corp. (TSXV: KNC) (FSE:
5GP) (OTCQB:
WDFCF
) ("K9" or the "Company")
is pleased to announce that further to its press
released dated May 24, 2023, it has acquired 1415322 B.C. LTD. ("
141 BC
") pursuant to a share
exchange agreement (the "
Agreement
") dated May 24, 2023 (the "
Transaction
"). Pursuant to the
Transaction, the Company added 64 claims (3304 Ha) to its JB lithium project in the James Bay region
of northern Quebec.
This will bring the total project holdings to 5418 Ha in 105 claims.
The Lac Joubert-Tilly (LJ-T) property (the "
Property
") is located approximately 60 km due east of the
previously announced Rivière Salomon (RS) property on the JB Li Project.
The LJ-T property is located
approximately 400 km east-southeast of Radisson, Quebec, and is immediately adjacent to Winsome
Resources recently announced Tilly Project (Winsome company release April 19, 2023).
Other projects
in the area include Allkem's James Bay lithium project, which recently received federal approval for
development, Patriot Battery Metals Corvette project located 50 km to the west and Winsome
Resources Lithium Adina project located approximately 40 km to the west.
The LJ-T property is
underlain by a package of Archaean rocks that is similar to the geological setting of the Corvette and
Adina projects, and includes outcrops of Tilly pegmatites, a known host of lithium in the James Bay
region.
About JB Lithium Project
The JB Lithium Project is located in the La Grande sub-province of the Archaean Superior Province in
Quebec, and comprises two units, the Rivière Salomon property (see Company release November 15,
2022 for property details) and the newly acquired Lac Joubert - Tilly property.
Lac Joubert-Tilly (LJ-T)property
The LJ-T property is underlain mainly by the Archean Joubert Suite and the Salomon River formation.
Where the Joubert Suite occurs on the property, it consists of a package of foliated, banded or gneissic
biotite-tonalite and granodiorite.
The Salomon River formation in the area consists mainly of
paragneisses that have undergone moderate partial melting, with 10% or more mobilisate.
Within the property boundaries, the Salomon River formation has been intruded by at least five zones of
Tilly Pegmatites which comprise pegmatitic granite with biotite-muscovite-tourmaline-magnetite-garnet
assemblages. These pegmatites are a significant lithium target for other explorers in this area.
They are
in close proximity to the Joubert Suite tonalites which are believed to be the source of lithium in regional
discoveries.
A 2015 Quebec Government geological mapping program located at least six outcrops of
pegmatitic granite, consistent with the Tilly Pegmatites.
In addition, one outcrop of an ultramafic intrusive
returned an assay of 77 ppm Li, along with 0.10% Ni and 0.30% Cr.
Rivière Salomon (RS) property
The Trieste Formation, which hosts lithium mineralization on the adjacent Adina property,
transects the
RS property.
Within the property boundaries, this Meso-Archaean age formation is mainly an ensemble
of mylonites and banded amphibolites derived from basalt, which have been intruded by various
intermediate rocks.
A significant band of tonalite, part of the Meso-Archaean age Kamusaawach
Intrusion, cuts through the centre of the property. Also cutting through the claims is a band of the Neo-
Archaean Richardie Suite, an intrusive biotite-magnetite-hornblende granodiorite.
The northern portion
of the property is underlain by the Neo-Archaean Sauvolles Pluton, which is mainly of granitic
composition.
There is also a prominent Paleoproterozoic-age mafic dyke (Senneterre dyke system)
cutting through the north of the property with a NE-SW orientation.
During a regional mapping program in 2013 by Government geologists, one outcrop was collected
sample from the property, reported in the Quebec Government's online geological database, SIGÉOM,
an returned a value of 65 ppm Li.
K9 has recently completed a helicopter-borne magnetometer and VLF survey on this property.
Results
will be reported on completion of data interpretation.
Lac Joubert - Tilly acquisition terms
In connection with the Transaction, the Company issued 3,000,000 common shares (the "
Company
Shares
") to the shareholders of 141 BC in exchange for the issued and outstanding common shares of
141 BC. The Company Shares were issued at a deemed value of $0.035 per Company Share. The
Company Shares were issued to the 141 BC shareholders pursuant to applicable securities laws and
the policies of the TSX Venture Exchange.
141 BC is now a wholly owned subsidiary of the Company.
141 BC is a party to an option agreement
(the "
Option Agreement
") whereby, pursuant to the terms of the Option Agreement, 141 BC may
acquire a 100% interest in the Property upon the completion of certain expenditures,
cash payments or
issuances of Company Shares.
Pursuant to the Option Agreement, 141 BC can earn a 100% undivided interest in the Property upon the
occurrence of the following milestones (collectively, the "
Milestones
"):
Payment of $25,000 within 180 days of May 9, 2023 (the "
Effective Date
") to the optionor (the
"
Optionor
");
Payment of $80,000, or the issuance of $80,000 worth of Company Shares to the Optionor within
one year of the Effective Date;
Payment of $150,000, or the issuance of $150,000 worth of Company Shares to the Optionor
within two years of the Effective Date; and
Payment of $215,000, or the issuance of $215,000 worth of Company Shares to the Optionor
within two years of the Effective Date.
If the Company elects to issue Company Shares in satisfaction of the certain payments under the Option
Agreement, an aggregate of 12,714,285 Company Shares may be issuable at a deemed price of
$0.035 Per Company Share.
Upon exercise of the Milestones, the Optionor will be granted a 2% net smelter royalty (the "
NSR
"), of
which 1.5% of the NSR may be purchased by 141 BC for a cash payment of $2,000,000. Further, 141
BC has agreed to pay to the Optionor a one-time payment of $1,000,000 in the event there is a National
Instrument 43-101 -
Standards of Disclosure for Mineral Projects
compliant mineral resource on the
Property valued over $100,000,000.
The Transaction is an Arm's Length Transaction (as such term is used in the TSX Venture Exchange
policies) and no finder's fees are payable in connection with the Transaction.
About K9 Gold Corp
K9 Gold Corp has assembled a highly-experienced and dynamic team to explore its JB Lithium Project.
K9 also operates the Stony Lake Gold Project in central Newfoundland.
The project has been acquired
from District Copper Corp by an option agreement, whereby K9 can earn up to a 100% interest in the
project (see Company release dated July 30, 2020).
The Company also owns a 100% interest in the
Desert Eagle Vanadium-Uranium project located in the historic Henry Mountains Mining District in SE
Utah.
The area has seen extensive historic vanadium and uranium mining and is close to Anfield Energy
Inc's Shootaring Canyon mill.
To ensure a safe workplace environment that protects the health and safety of employees and
contractors, K9 Gold follows all federally and provincially mandated and recommended guidelines
regarding COVID-19.
Chris M. Healey, P. Geo, Chief Geologist and a Director of K9 Gold Corp., is the qualified person
under NI 43-101 guidelines who is responsible for the technical content of this release and approves
its release.
Toll Free Number: (833) 434-GOLD (4653)
Kosta Tsoutsis
Director
K9 Gold Corp.
email:
Telephone: 604 808-9134
Brian Morrison
Chief Financial Officer and Director
K9 Gold Corp.
email:
telephone: 604 312-6910
The Company is listed on the TSX Venture Exchange.
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.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of
management regarding K9's intention to continue to identify potential transactions and make certain
corporate changes and applications. Forward-looking statements consist of statements that are not
purely historical, including any statements regarding beliefs, plans, expectations or intentions
regarding the future. Such statements are subject to risks and uncertainties that may cause actual
results, performance or developments to differ materially from those contained in the statements. No
assurance can be given that any of the events anticipated by the forward-looking statements will occur
or, if they do occur, what benefits K9 will obtain from them. These forward-looking statements reflect
managements' current views and are based on certain expectations, estimates and assumptions
which may prove to be incorrect. A number of risks and uncertainties could cause actual results to
differ materially from those expressed or implied by the forward-looking statements, including K9's
inability to identify transactions having satisfactory terms or at all and the results of exploration or
review of properties that K9 does acquire. These forward-looking statements are made as of the date
of this news release and K9 assumes no obligation to update these forward-looking statements, or to
update the reasons why actual results differed from those projected in the forward-looking statements,
except in accordance with applicable securities laws.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/168815