Hertz Lithium Inc. Acquires Option to Acquire Patriota Lithium Project in the Aracuai Pegmatite District
Hertz Lithium Acquires Option to Acquire Patriota
Lithium Project in the Araçuaí Pegmatite District
HIGHLIGHTS:
• Hertz has entered into an assignment agreement pursuant to which it has acquired
the option to acquire the prospective Patriota Lithium Project in the mining friendly
state of Minas Gerais in Brazil.
• These tenements are strategically situated proximal to the highly prolific 'Eastern
Brazilian Pegmatite Province ” (the “ EBPP”) and within the Araçuaí Pegmatite
District (the “APD”). The EBPP is the largest lithium pegmatite province of South
America and one of the most important pegmatite provinces around the world.
• The Patriota Lithium Project is a 2,964 hectare (contiguous 29 square kilometers)
mineral claim block in Brazil’s Minas Gerais State, a mining -friendly jurisdiction
located approximately 45 kms from Sigma Lithium Corp.’s Grota do Cirilo property,
the largest lithium hard rock deposit in the Americas.
• The Patriota Lithium Project is located near other lithium exploration and
production projects operated by Sigma Lithium Corp. , Lithium Ionic , Latin
Resources Limited and the Companhia Brasileira de Lítio Ltda.’s Cachoeira lithium
mine. Although the Company believes the spatial association with these important
advancing lithium deposits and mines supports the potential of the Patriota Lithium
Project, is not necessarily indicative of the mineralization on the property.
• The location boasts advantageous infrastructure, comprising well -developed
highways, access to hydroelectric power from the grid, water availability, and
convenient proximity to commercial ports and residential townships.
• The option represents Hertz’s first Brazilian project which is complementary to the
Company’s Lucky Mica Lithium Project in Arizona which continues to move
through the permitting and progress to trenching phase
• Hertz plans to commence rapid exploration in the coming weeks and months.
VANCOUVER, August 14, 2023 - Hertz Lithium Inc. (“Hertz” and/or the “Company”)
(CSE: HZ; OTCQB: HZLIF; FSE: QE2 ) is p leased to announce the acquisition of the
option (the “ Option”) to acquire a 100% interest in the Patr iota Lithium Project. The
Company acquired the Option pursuant to the terms and conditions of an option
assignment agreement (the “ Assignment Agreement ”) entered into among the
Company, Brascan Resources Inc. (“ Brascan”), BHBC Exploracao Mineral LTDA
(“BHBC”), and RTB Geologia e Mineracao LTDA (“ RTB”, and together with BHBC, the
“Optionors”). Pursuant to the Assignment Agreement, the Company has acquired
Brascan’s rights, including the Option, granted pursuant to an option agreement (the
“Option Agreement”) entered into among Brascan, BHBC, and RTB.
Through the acquisition of the Option, He rtz gains access to a strategically located and
highly prospective lithium project situated in the mining friendly state of Minas Gerais,
Brazil. A key advantage lies in the projects strategic location within the APD and proximal
to the renowned EBPP , one of the most important pegmatite provinces around the
world and a globally recognized hub for hard-rock lithium spodumene deposits. Notably,
this region accounts for 100% of all government presently recognized lithium reserves in
Brazil, making it highly valued for its abundant spodumene pegmatites.
Over the past two years, Brazil ’s importance in the lithium exploration space has
expanded significantly with the tremendous success of Sigma Lithium Corp. (NASDAQ:
SGML; TSX.V: SGML), followed by Latin Resources Limited (ASX: LRS), and the up and
coming Lithium Ionic Corp. (TSXV: LTH; OTCQB: LTHCF).
Figure 1: Eastern Brazilian Pegmatite Province Lithium District
Figure 2: Map of Patriota Lithium Project:
Details of the lithium resources reported in Figures 1 and 2 are provided in the various
company websites listed below. No qualified person from Hertz Lithium has to verified
the reported resource estimates, and the estimates are not necessarily indicative of the
mineralization on the property on the Patriota Project. Hertz is only reporting these
resource estimates as to support the regional potential for significant lithium
mineralization.
Source: www.cblitio.com.br/mineracao/
Source: Lithium Ionic Corporate Presentation: https://lithiumionic.com/investors/presentations/
Source: https://www.latinresources.com.au/salinas-lithium-project-brazil/
Source: Sigma Lithium Corp www.sigmalithiumresources.com /grota-do-cirilo/
Geological Detail
The Patriota Lithium Project under Option for Hertz Lithium shows strong high -level
prospectively criteria within the Araçuaí Pegmatite District (APD) and proximal to prolific
EBPP. The tenements are strategically located within the Salinas Formation
metasedimentary rocks that were deposited p rior to the Ara çuaí orogeny. The Salinas
Formation hosts the most prolific lithium pegmatites in the region. Pegmatite swarms
intruded the region during the collisional Neoproterozoic to post -collisional
Paleoproterozoic Ara çuaí orogeny. L -C-T pegmatit es (Lithium - Cesium - Tantalum)
include the pegmatitic granites surrounding the richest lithium pegmatites in the
SIGMA/CBL/Lithium Ionic region, as well as the nearest mapped (exposed) granite to the
Patriota Lithium Project (16 kilometres to the north). The regional granite rocks are
classified into five supersuites (G1, G2, G3, G4, and G5). Groups G3, G4 and G5 formed
during the post -collisional episode associated with the Gondwana Supercontinent's
Trans-Amazonian event (CPRM 2016a, 2016b). Notably, the potential pegmatite corridor
associated with lithium mineralized pegmatites with the G4 supersuite.
Hertz believes the association with proximal G4 suite granites supports the potential for
a favourable association with regional pegmatite swarms within the tenement areas. It is
worth noting that both Sigma Lithium’s (NASDAQ: SGML, TSXV: SGML) Grota do Cirilo
spodumene mine and Latin Resources (ASX:LRS) Colina Project are surrounded by the
same G4 supersuite granites as those mapped most closely to the te nements that Hertz
holds the Option to acquire. These compelling geological associations point to lithium
potential within these exploration areas.
Hertz acknowledges that the tenements under Option have not undergone any
exploration activities to date, a nd as a result, the existence of pegmatites and/or lithium
mineralisation remains uncertain. Nonetheless, a comprehensive desktop review of the
regional and local geology, along with the presence of significant spodumene mining and
development activities in close proximity, offers supplementary evidence supporting the
potential of the tenements.
Transaction Structure and Consideration
As consideration for the acquisition of the Option and pursuant to the terms and conditions
of the Assignment Agreement, the Company has agreed to pay an aggregate of $148,000
in cash, as follows:
• reimburse Brascan $3,300 in claim maintenance within two days following the execution
of the Assignment Agreement;
• pay Brascan $15,000 within two days following the exec ution of the Assignment
Agreement;
• pay Brascan $105,000 in exchange for Brascan issuing 3,000,000 common shares to the
Optionors, within five business days following confirmation that the shares have been
issued; and
• pay Brascan $25,000 on or before 45 days following the execution of the A ssignment
Agreement.
In order to exercise the Option in accordance with the terms and conditions of the Option
Agreement, the Company must:
• pay BHBC $50,000 by September 20, 2023;
• pay BHBC $3,300 by September 20, 2023 to cover mineral right taxes;
• incur $100,000 in exploration expenditures on the Patriota Lithium Project by September
20, 2023;
• pay BHBC $3,300 to cover mineral right taxes up to June 30, 2024;
• pay BHBC $50,000 by October 1, 2024;
• incur $100,000 in exploration expenditures on the Patriota Lithium Project by September
30, 2024; and
• pay $50,000 by September 30, 2025.
The Optionors will retain a 2% NSR with the Company having the option to repurchase
1% of the NSR for a cash payment of $500,000 for a period of two years after
the commencement of commercial production.
Additionally, upon the confirmation of the existence of spodumene from surface sample
assays results on the Patriota Lithium Project grading minimum 1% lithium, the Company
will be required to pay Brascan $100,000 in cash.
Mr. Kal Malhi, Chairman and Director of Hertz, commented, “We are laser focused to
build Hertz Lithium into a multi -faceted lithium mineral exploration company with our
Lucky Mica Lithium Project in Arizona and now the Patriota Lithium Project in Brazil and
our Penn State Lithium Extraction Patent Licence. We continue to seek additional high-
quality projects across the world and build our lithium development portfolio into a strong
offering for investors seeking an opportunity to invest into the generational investment
opportunity that the lithium sector offers.”
About Hertz Lithium Inc.
The Company is a British Columbia based mineral exploration company primarily engaged in the
acquisition and exploration of mineral properties. The Company’s lithium exploration projects
include, the Lucky Mica Project, is located along the Arizona Pegmatite Belt in the Maricopa
County of Arizona, USA and the Patriota Lithium Project, located along the Eastern Brazilian
Pegmatite Province, in Brazil. The Company is also working with Penn State University’s College
of Earth and Mineral Science department to develop a novel patent-pending hard rock lithium
extraction technology.
Qualified person
Harrison Cookenboo Ph.D., P. Geo. and a Qualified Person as defined under National
Instrument 43 -101 Standards of Disclosure for Mineral Projects , has reviewed the
scientific and technical information in this news release and has approved the disclosure
herein.
For further information, please contact Hertz Lithium or view the Company’s filings at
www.sedarplus.ca.
On Behalf of the Board of Directors
Kal Malhi
Chief Executive Officer and Director
Phone: 604-805-4602
Email: [email protected]
https://hertzlithium.com
REFERENCES:
CPRM 2016A: MAPA GEOLÓGICO E DE RECURSOS MINERAIS DE LÍTIO:
CPRM 2016B: PROJETO AVALIACAO DO POTENCIAL DO LITIO NO BRASIL.
The Canadian Securities Exchange has not in any way passed upon the merits of the
matters referenced herein and has neither approved nor disapproved the contents of this
news release.
Cautionary Statement Regarding “Forward-Looking” Information
This news release includes certain statements that may be deemed “forward-looking statements”.
All statements in this new release, other than statements of historical facts, that address events
or developments that the Company expects to occur, are forward -looking statements. Forward-
looking statements are statements that are not historical facts and are generally, but not always,
identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”,
“projects”, “potential” and similar expressions, or that events or conditions “will”, “would” , “may”,
“could” or “should” occur. Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results may differ mate rially from those in the
forward-looking statements. Factors that could cause the actual results to differ materially from
those in forward -looking statements include market prices, continued availability of capital and
financing, and general economic, market or business conditions. Investors are cautioned that any
such statements are not guarantees of future performance and actual results or developments
may differ materially from those projected in the forward -looking statements. Forward -looking
statements are based on the beliefs, estimates and opinions of the Company’s management on
the date the statements are made. Except as required by applicable securities laws, the Company
undertakes no obligation to update these forward -looking statements in the eve nt that
management's beliefs, estimates or opinions, or other factors, should change.