Lomiko Announces Definitive Agreement for Acquisition of the Carmin Natural Flake Graphite Property in Southern Quebec
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Lomiko Announces Definitive Agreement for Acquisition
of the Carmin Natural Flake Graphite Property in Southern Quebec
Montreal, Quebec – March 3, 2023 - Lomiko Metals Inc. (TSX.V: LMR) (“Lomiko Metals” or the
“Company”) is pleased to announce that it has entered into an agreement (the “Acquisition
Agreement”) with SOQUEM and a private owner to acquire 100% of 17 mineral claims forming
the Carmin project (the “Property”) , subject to customary closing conditions expected to be
completed within the next 3 to 4 weeks (the “Closing Date”) . These claims cover 678 hectares
(6,780 Sq km). The agreement was signed on March 2, 2023.
The Property is located 40 km west of Mont Tremblant and situated north-east and contiguous to
the La Loutre property where Lomiko has mineral rights (see Figure 1 below). The Property is
accessible by road and forest road from Lac- des-Plages and the northern end of the claims are
partially contiguous to the Papineau-Labelle Wildlife Reserve. Lomiko commits to not exploring or
developing within 1km of park boundaries. The La Loutre and Carmin project site are located within
the Kitigan Zibi Anishinabeg (KZA) First Nation’s territory and the KZA First Nation is part of the
Algonquin Nation. KZA territory is situated within the Outaouais and Laurentides region.
Belinda Labatte, CEO and director of Lomiko stated: “Our team is developing a regional and
responsible approach to natural flake graphite development via organic growth of its La Loutre
project, its six regional claims and this new claim acquisition. The Carmin property has the potential
to add significant mineral resources and mineral reserves to La Loutre’s existing resource base. This
can positively impact La Loutre project economics , and importantly, it provide s for additional
responsible site planning in the region. We also welcome SOQUEM as a shareholder of Lomiko
and look forward to working with SOQUEM in the long term. The regional geophysical surveys
being anticipated to be carried out in the region, in 2023, mark significant opportunities and actions
towards creating a regional approach to developing natural flake graphite, that if developed can feed
into the North American electric vehicle supply chain”.
Carmin Property and historical works
All work including the mineral resource and mineral reserve estimates are considered to be historic.
The Property consists of the C armin deposit which consists of three previously identified mineral
occurrences identified as site A, B and C; where the main mineral occurrence is identified as Site
A. The historical estimate was completed by SOQUEM in December 1990, using sections and
polygonal methods accounting for the blocks between sections 975N and 1425N using 2.6 t/m3
density. The property has been worked on since the late 1980s and early 1990s when a pre-feasibility
study was published. This historic pre-feasibility study wasn’t completed in compliance with current
CIM guidelines and NI-43-101 reporting requirements.
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The historic mineral resource estimate is based on Site A and the 91 boreholes drilled for a total of
5,688 metres, with the average hole depth of 62.5 m. The historic mineral resource estimate for Site
B is based on 27 holes for a total of 2,937m metres and average hole depth of 108.8m.
The original historical estimate contemplated certain assumptions where the mineral resources are
stated as Proven and Probable resources for Sites A and B. This historic pre -feasibility study
wasn’t completed in compliance with current CIM guidelines and NI -43-101 reporting
requirements.
Site A: total in place 1.55 Mt at 10.0% Cg
o Proven: 1.47 Mt at 10.29% Cg (holes drilled at 25meters spacing) – likely measured
o Probable: 0.073 Mt at 4.10% Cg
o In-situ graphite content:155,000t
Site B: in place
o Proven 123,000t at 13.1% Cg
o Probable: 39,000t at 13.1% Cg
Site C: undetermined mineral resources
Lomiko has not done sufficient work to classify the historical estimate as a current resource,
however the Company believes the original results can be relied upon to determine a subsequent
exploration drill program, with the objective of updating the historical estimate using NI 43 -101
guidelines. The Company is not treating the historical estimate as a current resource (“Historical
estimate” – a non-verified estimate prepared prior to issuer’s interest in the property).
A historic Pre-feasibility study was completed in March 1991 by SNC Lavallin Inc . This historic
pre-feasibility study wasn’t completed in compliance with current CIM guidelines and NI -43-101
reporting requirements. The study considered only Site A and outlines:
o Exploitable reserves: 1,013,000 tonnes at 8.75% Cg, diluted using 15% dilution at 1% Cg
o Cut-off content: 3% Cg
o Strip ratio waste:ore: 2:1
o Plant production of 87,200t or 15,000 tons of concentrate per year, mine life of 6 years
The historic m etallurgical test results completed as part of this study by Centre de Recherches
Minérales (“CRM”) in December 1990 for SOQUEM indicated the following:
o Overall recovery: 85%
o Concentrates grading 95% Cg
+48 meshes: 16.5%
-48 +100 meshes: 28.5%
-100 meshes: 55%
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Definitive Agreement terms
Lomiko to acquire SOQUEM’s interest in all mineral rights forming part of the Property in
consideration of (i) $50,000 payable in cash to SOQUEM in a single payment on the Closing Date;
(ii) the issuance to SOQUEM of 1,250,000 Shares; and (iii) the granting to SOQUEM of a r oyalty
of 0.75% on net smelter revenues (NSR) on the Property. However, Lomiko retains the exclusive
and irrevocable right and option to redeem one -third of the Royalty, thus reducing the Royalty to
0.50% NSR, for a total amount of $250,000 payable in cash to SOQUEM.
Lomiko to acquire private owner’s interest in the mineral rights forming part of the Property in
consideration of (i) the issuance to the private owner of 1,250,000 Shares; and (ii) the granting to
the private owner of a 0.75% royalty on the NSRs on the Property. However, Lomiko retains the
exclusive and irrevocable right and option to redeem one -third of the royalty, thereby reducing the
royalty to 0.50% NSR, for a total amount of $250,000 payable in cash to the private owner.
The transaction is subject to customary closing conditions including the approval of the TSX
Venture Exchange. The shares issuable by Lomiko under this transaction will be subject to a
regulatory hold period of 4 months and 1 day following the Closing Date. Lomiko is not paying
any finders fees in order to acquire the property.
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Figure 1 – Carmin Property location outlining historic drilling.
Next steps
Lomiko intends to review existing data and continue with work required to update the historical
mineral resource and issue a NI 43-101 compliant technical report in 2023, subject to available
financing. It may also conduct metallurgical testing of the prospect to confirm historical results.
In addition, and as mentioned in its press release dated February 21, 2023, Lomiko plans to advance
exploration on its six graphite minerals properties, acquired in the spring of 2022 in the Grenville
Metasedimentary G raphite Belt. The objective of the Carmin acquisition and the regional
exploration is to develop a sustainable , responsible approach and resilient strategic stockpile of
natural flake graphite that can feed into the graphite market at large, and the regional market for
electric vehicles battery manufacturing.
Qualified Person for technical content at Carmin
SITE A
SITE B
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The technical information in this press release has been prepared and approved by Ms. Gordana
Slepcev P.Eng., who is the Company’s COO and registered professional engineer in the province
of Ontario, a qualified person as defined by NI 43-101 guidelines.
About Lomiko Metals Inc.
The Company holds mineral interests in its La Loutre graphite development in southern Quebec.
The La Loutre project site is located within the Kitigan Zibi Anishinabeg (KZA) First Nation ’s
territory. The KZA First Nation is part of the Algonquin Nation and the KZA traditional territory is
situated within the Outaouais and Laurentides regions. Located 180 kilometres northwest of
Montreal, the property consists of one large, continuous block with 76 mineral claims totalling 4,528
hectares (45.3 km2).
The Property is underlain by rocks belonging to the Grenville Province of the Precambrian Canadian
Shield. The Grenville was formed under conditions that were very favourable for the development
of coarse- grained, flake -type graphite mineralization from organic -rich material during high -
temperature metamorphism.
Lomiko Metals published a July 29, 2021 Preliminary Economic Estimate (PEA) which indicated
the project had a 15- year mine life producing per year 100,000 tonnes of graphite concentrate at
95% Cg or a total of 1.5Mt of graphite concentrate. This report was prepared as National Instrument
43-101 Technical Report for Lomiko Metals Inc. by Ausenco Engineering Canada Inc., Hemmera
Envirochem Inc., Moose Mountain Technical Services, and Metpro Management Inc., collectively
the Report Authors.
In addition to La Loutre, Lomiko is working with Critical Elements Lithium Corporation towards
earning its 70% stake in the Bourier Project as per the option agreement announced on April 27 th,
2021. The Bourier project site is located near Nemaska Lithium and Critical Elements south-east of
the Eeyou Istchee James Bay territory in Quebec which consists of 203 claims, for a total ground
position of 10,252.20 hectares (102.52 km2), in Canada’s lithium triangle near the James Bay region
of Quebec that has historically housed lithium deposits and mineralization trends.
On behalf of the Board,
Belinda Labatte
CEO and Director, Lomiko Metals Inc.
For more information on Lomiko Metals, review the website at www.lomiko.com
Contact Gordana Slepcev at 647 -391-7344 or Belinda Labatte at 647 -402-8379 or at 1 -833-456-
6456 or 1-833-4-LOMIKO
or email: [email protected].
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Cautionary Note Regarding Forward-Looking Information
This news release contains "forward -looking information" within the meaning of the applicable
Canadian securities legislation that is based on expectations, estimates, projections and
interpretations as at the date of this news release. The information in this news release about the
Company; and any other information herein that is not a historical fact may be "forward- looking
information" (“FLI”). All statements, other than statements of historical fact, are FLI and can be
identified by the use of statemen ts that include words such as "anticipates", "plans", "continues",
"estimates", "expects", "may", "will", "projects", "predicts", “proposes”, "potential", "target",
"implement", “scheduled”, "intends", "could", "might", "should", "believe" and similar words or
expressions. FLI in this new release includes, but is not limited to: expected timing of completion
of the closing conditions in connection with the acquisition and closing of the acquisition, expected
costs of exploration and timing to achieve certain milestones, timing for completion of exploration
programs; the Company’s ability to successfully fund, or remain fully funded for the implementation
of its business strategy and for exploration of any of its projects (including from the capital markets);
any anticipated impacts of COVID -19 on the Company’s business objectives or projects and the
Company's financial position or operations. FLI involves known and unknown risks, assumptions
and other factors that may cause actual results or performance to differ materially. This FLI reflects
the Company’s current views about future events, and while considered reasonable by the Company
at this time, are inherently subject to significant uncertainties and contingencies. Accordingly, there
can be no certainty t hat they will accurately reflect actual results. Assumptions upon which such
FLI is based include, without limitation: the ability of the Company to meet the closing conditions
of the acquisition, including regulatory approval, and complete the transaction within the anticipated
timing; ability to implement its business strategy and to fund, explore, advance and develop each of
its projects, including results therefrom and timing thereof; uncertainties related to receiving and
maintaining exploration, environmental and other permits or approvals in Quebec; any unforeseen
impacts of COVID -19; impact of increasing competition in the mineral exploration business,
including the Company’s competitive position in the industry; general economic conditions,
including in relation to currency controls and interest rate fluctuations.
The FLI contained in this news release are expressly qualified in their entirety by this cautionary
statement, the “Forward -Looking Statements” section contained in the Company’s most rece nt
management’s discussion and analysis (MD&A), which is available on SEDAR at www.sedar.com,
and on the investor presentation on its website. All FLI in this news release are made as of the date
of this news release. There can be no assurance that such st atements will prove to be accurate, as
actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward- looking information. The
Company does not undertake to update or revise any such forward- looking statements or forward-
looking information contained herein to reflect new events or circumstances, except as may be
required by applicable securities laws.
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 news release. No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
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