St. Anthony Gold Corp. to acquire a 75% interest in Brazilian, highly prospective Lithium & Rare Earth projects
St. Anthony Gold Corp. to acquire a 75% interest in Brazilian,
highly prospective Lithium & Rare Earth projects
VANCOUVER, BC / ACCESSWIRE / October 21, 2022 / St. Anthony Gold Corp. (“St. Anthony” or
“the Company”) (CSE: STAG) (Frankfurt: M1N) (OTC: MTEHF) has entered into a non-binding
Letter of Intent (LOI) with Foxfire Metals Pty Ltd (“Foxfire”), an Australian Company, pursuant to
which the Company intends to acquire a 75% interest in eight Brazilian exploration licenses (“the
Brazilian Portfolio”); six for lithium and two for rare earth elements (REE).
The Brazilian Portfolio
The Brazilian Portfolio totals 12,315 hectares of highly prospective lithium and REE exploration
licenses, in the states of Minas Gerais and Bahia for lithium and Goas for REEs. Brazil is now
recognized as one of the world’s major high grade lithium producers confirmed by Tesla supplier
recently securing off take agreements with Sigma Lithium Corporation’s (TSX-V: SGML) subsidiary
Brazilian Sigma Mineração SA (Sigma).
The Minas Gerais Project
Three of the six acquiring lithium licenses are only ~38 km to the east of Sigma’s Grota do
Cirilo property in Minas Gerais, Brazil.
These three lithium licenses lie within the highly prospective northern portion of the state
of Minas Gerais in the municipality of Padre Paraiso, location of the Brazilian lithium
producing districts and lithium belt. The areas are known to host lithium bearing
pegmatites associated with spodumene, lepidolite and amblygonite.
Minas Gerais state owned Companhia Brasileira de Litio’s mining operation and Lithium
Ionic (TSX-V:LTH) as well as Australian-based Latin Resources Limited (ASX: LRS) and
Oceana Lithium Limited (ASX: OCN) have recently made discoveries in the same, well
known lithium province and pegmatite area of Minas Gerais.
Bahia Lithium Project
The other three of the six acquiring Lithium licenses are situated in the north-eastern
states of Bahia, Pernanbuco, and Rio Grande do Norte and have the potential to host
lithium bearing pegmatites.
Goas REE Project
Outside of China, Brazil is the dominant global producer of certain REEs, with most major
producers and explorers of REEs in Brazil located in the state of Goas where St. Anthony
can acquire two REE exploration licenses.
Commenting on the Transaction, Peter Wilson, CEO of St. Anthony stated, “We are excited about
the proposed acquisition of a 75% interest in these highly prospective lithium and rare earth
elements projects across three states in Brazil. Over the last number of months, management has
been reviewing a range of potential acquisition opportunities to diversify our project portfolio;
we believe that, given the location and commodity, these projects offer the Company the best
opportunity to increase shareholder value.”
“Brazil has seen increased interest from junior explorers and major mining houses, with the region
being home to a number of lithium projects. The proposed ( Foxfire) licenses provide an exciting
opportunity for early-stage, green field exploration in a known lithium province, particularly given
the close proximity of Sigma’s property (~38km).”
“Our team will continue diligence work with the aim of initiating a maiden exploration program
in November 2022. I am excited to be part of this new venture for St. Anthony and look forward
to updating stakeholders and shareholders in due course.”
Commercial Terms of the Transaction
The transaction allows St. Anthony to acquire an immediate 75% interest in the Brazilian Portfolio
upon signing of the LOI and agreeing to:
Grant a free carried interest for Foxfire’s 25% equity in the Brazilian Portfolio to the end
of a bankable feasibility study.
A cash payment 15 days after execution of the LOI of CAD $150,000 with a further CAD
$100,000 within 6 months or on the next capital raising (whichever is the sooner).
Issuing 13,896,250 shares of St. Anthony to Foxfire under agreed escrow terms.
Maintenance of the existing net smelter royalty of 2% held by the original vendors
remains, with a buy back provision of 50% for CAD $1,000,000.
Maintenance of management rights of the project by Foxfire for two years with both
parties to formulate an agreed upon expenditure budget for the period.
St. Anthony being granted the “first right of refusal” to acquire Foxfire’s 25% equity
interest in the Brazilian Portfolio
Proposed Initial Exploration and Study Activities
An exploration program is being prepared to map and locate potential pegmatites for lithium as
well as for REEs with the aim of identifying immediate drill targets.
The technical information contained in this news release has been reviewed and approved by Dr.
Paul Woolrich (BSc Geology, MSc Geochemistry, PhD Metallurgy) who is a Member of the
MAusIMM and a Qualified Person as defined under National Instrument 43-101.
FOR ADDITIONAL INFORMATION SEE THE COMPANY'S WEB SITE AT
https://stanthonygoldcorp.com
Email to [email protected]
Contact: Peter Wilson CEO - 604-649-0945
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the Canadian Securities Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Further information about the Company is available on www.SEDAR.com under the Company’s
profile.