ExGen Signs Binding LOI to Acquire Lithium Property in Nevada
ExGen Signs Binding LOI to Acquire Lithium Property in Nevada
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES
VANCOUVER, British Columbia, Dec. 05, 2024 -- ExGen Resources Inc. (TSX.V: EXG; OTC: BXXRF) (“ ExGen”, the
“Company”) is pleased to announce that it has entered into a binding letter of intent (the “ Binding LOI”) to acquire the Spark
North lithium project in Elko County, Nevada consisting of 111 claims totaling approximately 2300 acres prospective for lithium
(the “Spark North Lithium Project ”) from an arm’s length private company (the “Vendor”). The property is north of Surge
Battery Metals Inc.’s (TSXV: NILI) “Nevada North Lithium Project” in Elko County, Nevada. In a news release dated September
24, 2024, Surge Battery Metals Inc. announced that the Nevada North Lithium Project had the highest grade lithium clay
deposit in the USA (11.24 Mt LCE grading 3,010 ppm Li at a 1,250 ppm cutoff). The technical report for the Nevada North
Lithium Project was prepared for Surge Battery Metals Inc. by authors Jeffrey D. Phinisey of TAG Resources LLC and Bruce
M. Davis, independent geostatistical consultant, and titled “Technical Report on Mineral Resource Estimate for the Nevada
North Lithium Project, Elko County, Nevada USA”, dated effective October 9, 2024, and as announced on September 24,
2024.
The Binding LOI and the acquisition of the Spark North Lithium Project are subject to TSX Venture Exchange (“TSXV”)
approval. ExGen cautions that past results or discoveries on properties in proximity to ExGen’s properties, including the
Nevada North Lithium Project, may not necessarily be indicative of the presence of mineralization on any of the Company’s
properties.
The Binding LOI outlines the terms of the acquisition as follows:
• ExGen to provide a cash payment of CAD $250,000 to the Vendor. The first $100,000 is due on completion of due
diligence or waiver of the due diligence condition in respect of the Spark North Lithium Project. The $150,000 balance is
due on closing of the transfer to ExGen of the claims for the Spark North Lithium Project (the “Closing”).
• ExGen to issue 5,000,000 common shares to the Vendor on Closing.
• ExGen to grant a 1.5% NSR in favour of the Vendor, with a 0.75% NSR buyback (half of the NSR) at ExGen’s option for
CAD $1,000,000.
• The Closing of the acquisition of the Spark North Lithium Project is also subject to conditions as are customary for
transactions similar to the acquisition.
Jason Riley, CEO of ExGen commented: “We have evaluated a number of properties over the past few years and are excited
to acquire a position in the Lithium district in Elko County, NV. We look forward to completing our due diligence and closing
this acquisition shortly.”
QUALIFIED PERSON
Kieran Downes, Ph.D., P. Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the
technical information provided in this release.
ABOUT EXGEN RESOURCES INC.
ExGen, formerly Boxxer Gold Corp, is a project accelerator that seeks to fund exploration and development of our projects
through joint ventures and partnership agreements. This approach significantly reduces the technical and financial risks for
ExGen, while maintaining the upside exposure to new discoveries and potential cash flow. The Company intends to build a
diverse portfolio of projects across exploration stages and various commodity groups. ExGen currently has 5 projects in
Canada and the US.
For more information on ExGen please contact:
ExGen Resources Inc.
Jason Tong
Chief Financial Officer
Email: [email protected]
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.
Forward-Looking Information: This news release contains certain forward-looking information. All statements included
herein, other than statements of historical fact, are forward-looking information and such information involves various risks and
uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events
could differ materially from those anticipated in such information. In particular, this news release contains forward-looking
information in relation to: the potential acquisition of the Spark North Lithium Project, including the potential closing of the
Spark North Lithium Project, potential TSXV approval of the Spark North Lithium Project, the potential completion of due
diligence in relation to the Spark North Lithium Project, and the potential payment of consideration in relation to the Spark
North Lithium Project including the potential payment of 5,000,000 common shares of the Company, subject to TSXV approval.
There can be no assurance that such information will prove to be accurate, and actual results and future events could differ
materially from those anticipated in such information. In the forward looking information contained in this news release, ExGen
has made numerous assumptions, based upon practices and methodologies which are consistent with the mineral industry. In
addition, ExGen has assumed: the continued market acceptance of its joint venture partnership model; the ability of ExGen
and its partners to raise future equity financing, if needed, at prices acceptable to ExGen or its partners; ExGen's current and
initial understanding and analysis of the Spark North Lithium Project; the ability of ExGen or third parties to discover viable
exploration targets and the results of exploration on the Spark North Lithium Project; and ExGen's general and administrative
costs remaining sustainable. While ExGen considers these assumptions to be reasonable, these assumptions are inherently
subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could
cause ExGen's observations, actual results, performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors
include, among others: the possibility that the analytical results from future core sampling does not return significant grades of
lithium or any other mineralization; uncertainties relating to interpretation of drill results and the geology; continuity and grade
of mineralization; there is no certainty that any work programs will result in significant or successful exploration of the Spark
North Lithium Project or development of the Spark North Lithium Project into a producing mine; uncertainty as to the actual
results of exploration and development or operational activities; uncertainty as to the availability and terms of future financing;
uncertainty as to timely availability of permits and other governmental approvals; ExGen may not be able to comply with its
ongoing obligations regarding its properties; the early stage development of ExGen and its projects, and in particular, the
Spark North Lithium Project; general business, economic, competitive, political and social uncertainties; capital market
conditions and market prices for securities, junior market securities and mining exploration company securities; commodity
prices, in particular copper, gold, silver, lithium and zinc prices; competition; changes in project parameters as plans continue
to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or
regulatory approvals; changes in legislation, including environmental legislation, affecting ExGen; conclusions of economic
evaluations; and lack of qualified, skilled labour or loss of key individuals. A description of additional risk factors that may
cause actual results to differ materially from forward-looking information can be found in ExGen's disclosure documents on the
SEDAR+ website at www.sedarplus.ca. Although ExGen has attempted to identify important factors that could cause actual
results to differ materially from those contained in forward-looking information, there may be other factors that cause results
not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking
information. ExGen does not undertake to update any forward-looking information except in accordance with applicable
securities laws.