Queensland Gold Hills Announces Acquisition of Mia Lithium Project in Quebec Hosting 8km Spodumene-Pegmatite Trend and Concurrent Private Placement Financing
Queensland Gold Hills Announces Acquisition
of Mia Lithium Project in Quebec Hosting 8km
Spodumene-Pegmatite Trend and Concurrent
Private Placement Financing
Vancouver, British Columbia--(Newsfile Corp. - November 28, 2022) -
Queensland Gold Hills Corp.
(TSXV: OZAU) (OTCQB: MNNFF)
("
Queensland Gold
" or the "
Company
") is pleased to announce
that it has entered into an agreement with an effective date of November 21, 2022 (the "
Purchase
Agreement
") with 9219-8845 QC Inc., a private Quebec company dba Canadian Mining House
("
CMH
") and certain investors in CMH ("
CMH Nominees
") to acquire a 100% interest in the 86 square
kilometre Mia Lithium Property (the "
Property
") in the James Bay area of Quebec, Canada (the
"
Acquisition
").
President & CEO Alicia Milne states, "Our entry into the lithium space represents a new value creation
opportunity for our shareholders. Quebec is a top global mining jurisdiction and the James Bay region is
a highly attractive investment destination for lithium exploration due to its prolific hard rock lithium
endowment. We are looking forward to revealing the enormous potential we see in the Mia project."
About the Mia Lithium Property
The Mia Property is comprised of 170 mineral claims, located 62 km East of Wemindji Community in the
Eeyou Itschee Territory, James Bay, Quebec. The lithium mineral showings are located approximately
10 kilometres from the nearest highway.
Figure 1 - Mia Lithium Property Regional Location
To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/1454/145806_f62b05b224905a0c_001full.jpg
The Property geology is part of the Yasinski Lake area, identified by narrow greenstone belt slivers,
belonging to volcanic rocks and related sediment the Yasinski Group and pierced by syn-tectonic
tonalite and granodiorite suite. The Property is situated in the western extremity of this geological area,
covering various lithologies and favourable structures, known to host spodumene bearing pegmatites.
The southern half of the Property covers a northeast limb of the Vieux Comptoir granite and a concordant
intrusive body described as a spodumene granite on SIGEOM, the Quebec provincial government's
geomining information system:
https://sigeom.mines.gouv.qc.ca/signet/classes/I1108_afchCarteIntr
.
Figure 2 - Mia Lithium Property
To view an enhanced version of Figure 2, please visit:
https://images.newsfilecorp.com/files/1454/145806_f62b05b224905a0c_002full.jpg
Historical work by Main Exploration Company Ltd. in 1959 (GM10200) reported several spodumene-
bearing pegmatites on the Property and mapped an 8.3 km trend of discontinuous pegmatite intrusions.
SIGEOM lists nine metallic deposits directly on the Mia Lithium property including two for lithium, namely
Mia Li-1 and Mia Li-2. Carte 1879 is listed as a spodumene mineral deposit as no assays were
recorded for it.
The westernmost mineral showings Mia-Li1 and Mia-Li2 were sampled in 1997 by Quebec government
geologists and assays returned grades of 0.47% Li
2
O and 2.27% Li
2
O respectively. Numerous
pegmatite intrusions have been recorded along the 8.3 km long trend but were never followed up for their
lithium potential. The 1959 report also details that the pegmatite dykes are as much as 100 feet (30.5
metres) in width and are commonly zoned, with spodumene crystals described as being as much as 2
feet (0.61 metres) in length.
Acquisition Terms:
Subject to TSX Venture Exchange (the "
TSXV
") acceptance, pursuant to the terms of the Purchase
Agreement, the Company will acquire the Property from CMH for total consideration of an aggregate of
13,000,000 common shares of the Company (the "
Consideration Shares
"), $500,000 (the "
Cash
Consideration
") and $1,000,000 in exploration expenditures as follows:
6,500,000
Consideration Shares and
$200,000
within 3 days of TSXV acceptance of the
Acquisition (the "Effective Date")
;
6,500,000
Consideration Shares and
$150,000
on the six-month anniversary of Effective Date;
and
Incur $1,000,000 in exploration expenditures on the Property and $
150,000
on the one-year
anniversary of the Effective Date (the "
Closing Date
").
The Company will earn a 100% interest in the Property on the Closing Date.
CMH has directed that a portion of the Acquisition Shares and Cash Consideration be issued and paid
to the CMH Nominees.
CMH will retain up to a maximum of a 3% net smelter returns royalty, of which up to 1% can be
repurchased by the Company at any time prior to commercial production for $1,000,000.
No finder's fee
is payable in connection with the Acquisition. The Property is subject to an existing 2% net smelter
returns royalty granted by CMH (as assignee) in favour of Franco-Nevada Corporation on certain
minerals claims forming a part of the Property as well as an existing 2% net smelter returns royalty
granted by CMH in favour of Eastmain Resources Inc. on certain mineral claims forming part of the
Property.
On the Closing Date, the Company will assume the obligations under these existing royalties.
The Acquisition remains subject to TSXV acceptance.
Private Placement
Queensland will be conducting a non-brokered private placement of up to 12,500,000 units (each, a
"
Unit"
) at a price of $0.10 per Unit for gross proceeds of up to $1,250,000 (the "
Offering
"). Each Unit
will consist of one common share of the Company (each, a "
Share
") and one half of one common share
purchase warrant (each whole warrant, a "
Warrant
").
Each Warrant exercisable into one additional
Share at a price of $0.25 for two years after the date of issuance.
Closing of the Offering is subject to the
acceptance of the TSXV.
The Company intends to use the proceeds of the Offering to commence a
comprehensive review of all historical data related to the Mia Lithium Property in preparation for a field
exploration campaign and for general working capital.
All securities to be issued under the Offering will be subject to a statutory hold period expiring four
months and one day from the date of issuance. The Company anticipates that the majority of the
subscriptions will be from arm's length parties, although insiders may participate in the Offering. The
Company may pay finders' fees on the Offering, as permitted by applicable securities.
QP Disclosure
Neil McCallum, B.Sc., P.Geo., of Dahrouge Geological Consulting Ltd., a registered permit holder with
the Ordre des Géologues du Québec and Qualified Person as defined by National Instrument 43-101 -
Standards of Disclosure for Mineral Projects, supervised the preparation of the technical information in
this news release.
About Queensland
Queensland Gold Hills is mineral exploration company currently advancing exploration of two gold
projects located in the historic goldfields of Queensland, Australia: the Big Hill Gold Project and the Titan
Project which collectively cover 110 square kilometers in the Talgai Goldfields of the broader Warwick-
Texas District and host 54 high-grade historical gold mines.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Alicia Milne
President & CEO
Kevin Bottomley
Director
Telephone:
1 (800) 482-7560
E-mail:
Twitter:
@QLDGoldhills
Forward-Looking Statements
This news release may contain forward-looking statements and forward-looking information
(collectively, "forward-looking statements") within the meaning of applicable Canadian legislation.
Forward-looking statements are typically identified by words such as: "believes", "expects",
"anticipates", "intends", "estimates", "plans", "may", "should", "would", "will", "potential", "scheduled"
or variations of such words and phrases and similar expressions, which, by their nature, refer to future
events or results that may, could, would, might or will occur or be taken or achieved. Accordingly, all
statements in this news release that are not purely historical are forward-looking statements and
include statements regarding beliefs, plans, expectations and orientations regarding the future
including, without limitation, any statements or plans regard the geological prospects of the
Company's properties and the future exploration endeavors of the Company. 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 or
developments may differ materially from those in the forward-looking statements. Forward-looking
statements are based on a number of material factors and assumptions. Factors that could cause
actual results to differ materially from those in forward-looking statements include failure to obtain
necessary approvals, unsuccessful exploration results, changes in project parameters as plans
continue to be refined, results of future resource estimates, future metal prices, availability of capital
and financing on acceptable terms, general economic, market or business conditions, risks
associated with regulatory changes, defects in title, availability of personnel, materials and equipment
on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving
government approvals, unanticipated environmental impacts on operations and costs to remedy
same. Readers are cautioned that mineral exploration and development of mines is an inherently
risky business and accordingly, the actual events may differ materially from those projected in the
forward-looking statements. Additional risk factors are discussed in the section entitled "Risk Factors"
in the Company's Management Discussion and Analysis for its recently completed fiscal period,
which is available under Company's SEDAR profile at
www.sedar.com
.
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.
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https://www.newsfilecorp.com/release/145806