Xplore Announces Earn-In Option Agreement on the Surge Lithium Project
Xplore Announces Earn-In Option Agreement
on the Surge Lithium Project
Toronto, Ontario--(Newsfile Corp. - February 22, 2022) -
Xplore Resources Corp
.
(TSXV: XPLR)
(
"Xplore"
or the
"Company"
), is pleased to announce that it has entered into an Option Agreement
(the
"Agreement"
) with 1544230 Ontario Inc. and Gravel Ridge Resources Inc. (together the
"Optionors"
) to earn a 100% ownership interest in eight (8) unpatented contiguous mining claims
(3416 ha) that make up the Surge Property (the
"Property"
or
"Surge"
) located in the Patricia Mining
District, Ontario, Canada approximately 150 kms east of Red Lake, Ontario.
The Property is in the Superior Province of the Canadian Shield, along the 450 km, E-W trending
Sydney Lake - Lake St. Joseph ("SL-LSJ") fault, separating dominantly intrusive rocks and greenstones
of the North Caribou superterrane to the north from the metasedimentary rocks of the English River
terrane to the south. (Ref. Figure 1.0).
Wes Hanson, P.Geo., President and CEO of Xplore, comments: "The fundamentals of the lithium sector
are extremely robust with strong demand and limited supply. Most analysts agree that the increased
demand for lithium batteries to supply manufacturers of electric vehicles will exceed lithium supply for the
foreseeable future. The Allison Lake batholith represents a premium address for lithium exploration in
Ontario. Our Perrigo Lake property is adjacent to the batholith and the Surge agreement increases our
land position to over 6700 hectares in this highly prospective, road accessible lithium district, which also
happens to be highly prospective for gold as well. Both properties are close to the major, regional scale
break subdividing two superterranes of the Superior province. Historical mapping by the Ontario
Geological Survey has identified key indicators of fractionation of the Allison Lake batholith.
Peraluminous granite intrusions are scattered through the region, one of which transects the Surge
claims. Lithium bearing pegmatites, have been identified at Root Lake, 12 kms to the west, where a
historical Li
2
O resource was established at the McCombe lithium deposit in the mid 1950s. Ardiden Ltd.
(2016) reported channel sampling returned 14.0 meters averaging 1.67% Li
2
O, two kms east of the
Property. Our plan is to aggressively evaluate the lithium potential at both Perrigo and Surge, deploying
our existing exploration capital immediately."
The Property is located 12 kms east of the Root Lake pegmatite group which includes the McCombe
lithium deposit, (historic mineral resource of 2.3 million tons @ 1.3% Li
2
0 as per Mulligan R., Geological
Survey of Canada, 1965) (Ref. Figure 2.0).
The Root Lake pegmatite group lies within the Pakwash - Lake St. Joseph ("PLSJ") rare element
pegmatite trend, a
20 kilometer wide, +100 km long trend containing multiple peraluminous (Al-rich)
granitic intrusions, rare earth pegmatites and lithium bearing pegmatites, including the Allison Lake
batholith, a large, tadpole shaped, peraluminous granitic intrusive described by the Ontario Geological
Survey ("OGS") in OFR 6099 (2003) as "the largest known fertile peraluminous granite mass in
northwestern Ontario" (Ref. Figure 1.0). The southeast trending tail of the Allison Lake batholith trends
into the PLSJ and a series of peraluminous granitic intrusions, including the one dominating the center of
the Spark claims, outcrop along this E-W trend.
Terms of Transaction
Under the terms of the Agreement, Xplore will acquire a 100% ownership interest in the Property by
completing the following:
The Company obtaining all necessary approvals from the TSX Venture Exchange (the
"TSX.V"
);
and
Incur Expenditures in an aggregate amount of $60,000 on or before the first anniversary; and
Make four (4) cash payments to the Optionors totalling $110,000.00 and issue 400,000 shares of
the Optionee in accordance with the following schedule:
i
.
Making a cash payment of $20,000.00 cash payment upon the signing of this Agreement
(the "Initial Payment"); and 400,000 shares of the Optionee (the "Payment Shares"); and
ii
.
Making a cash payment of $25,000.00 cash payment on or before the first (1
st
) anniversary;
and
iii
.
Making a cash payment of $30,000.00 on or before the second (2
nd
) anniversary; and
iv
.
Making a cash payment of $35,000.00 on the third (3
rd
) anniversary.
On completion of the above noted cash payments and share issuances, Xplore will have earned a 100%
interest in Surge and upon commencing any commercial production of any minerals from the Property,
the Company will pay the Optionors a royalty on production equal to a 1.5% net smelter return royalty (the
"NSR"
).
The transaction and the issuance of the shares contemplated by the Agreement are subject to the
acceptance of the TSX.V. Any securities issued will be subject to applicable statutory hold periods for a
period of four months plus a day from the date of issuance.
Figure 1.0 - Allison Lake Batholith - Regional Geology
To view an enhanced version of Figure 1.0, please visit:
https://orders.newsfilecorp.com/files/7519/114484_45876023d4f83b5d_002full.jpg
About Xplore Resources (TSXV: XPLR)
Xplore Resources is a Toronto based mining exploration company listed on the TSX Venture Exchange
under symbol XPLR and is focused on the acquisition and development of mineral projects in the
Americas. The Company is led by a highly experienced management team and is comprised of industry
experts with executive and senior management experience in geology, banking, private equity, investor
relations and law.
Qualified Persons
Mr. Wes Hanson, P. Geo., President & CEO of Xplore and registered in the Province of Ontario is the
"Qualified Person" under
National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI
43-101")
and is responsible for the technical contents of this news release and has approved the
disclosure of the technical information contained herein.
Figure 2.0 - Surge Project - Root Bay District, Ontario
To view an enhanced version of Figure 2.0, please visit:
https://orders.newsfilecorp.com/files/7519/114484_45876023d4f83b5d_003full.jpg
ON BEHALF OF THE BOARD
"Wesley C. Hanson"
President & CEO
For further information, please contact:
Phone: +1 647-362-9675
Email:
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
ANY SECURITIES REFERRED TO HEREIN WILL NOT BE REGISTERED UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), AND MAY NOT BE OFFERED OR
SOLD IN THE UNITED STATES OR TO A U.S. PERSON IN THE ABSENCE OF SUCH
REGISTRATION OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
1933 ACT.
THE TSX VENTURE EXCHANGE INC. HAS IN NO WAY PASSED UPON THE MERITS OF THE
PROPOSED TRANSACTION AND HAS NEITHER APPROVED NOR DISAPPROVED THE
CONTENTS OF THIS PRESS RELEASE.
Notice on forward-looking statements:
Information set forth in this news release contains forward-looking statements. These statements
reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees
of future performance. Xplore cautions that all forward-looking statements are inherently uncertain,
and that actual performance may be affected by a number of material factors, many of which are
beyond Xplore's control. Such factors include, among other things: risks and uncertainties relating to
Xplore's ability to complete the proposed Transaction; and other risks and uncertainties, including
those to be described in the Filing Statement to be filed by Xplore on
SEDAR.com
. Accordingly,
actual, and future events, conditions and results may differ materially from the estimates, beliefs,
intentions, and expectations expressed or implied in the forward-looking information. Except as
required under applicable securities legislation, Xplore undertakes no obligation to publicly update or
revise forward-looking information.
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https://www.newsfilecorp.com/release/114484