VANCOUVER, Feb. 9, 2015 /PRNewswire/ – Lomiko Metals Inc. (TSX-V:LMR, OTC:LMRMF, FSE:DH8B) (“Lomiko”) and Canada Strategic Metals Inc. (“Strategic Metals”) (TSX.V: CJC; FSE: YXEN; OTC-BB: CJCFF) are very pleased to confirm Lomiko’s acquisition of a 40% interest in the La Loutre Property (see Lomiko’s press release dated September 23, 2014 for more details on the initial transaction) and announce a new option agreement between the two companies following a successful drilling campaign on the La Loutre Property.
Strategic Metals has recently sought to divest itself of graphite assets and an opportunity to acquire the Lac Des Illes Property arose for Lomiko. As such, Lomiko and Strategic Metals have agreed on the terms of an additional option pursuant to which Lomiko shall have the exclusive right and option to acquire an additional 40% undivided interest in the La Loutre Property and an 80% undivided interest in the Lac des Iles Property in exchange for a payment of $10,000, the issuance of 3 million common shares of Lomiko and the funding of $2.75 million in exploration expenditures over a 2 year period.
The Lac des Iles property consists of 1 large contiguous block of 104 mineral claims totaling 5,601.30 hectares (56.01 km2) that borders the western limit of the Imerys Lac Des Illes property which is the location of the Imerys Carbon and Graphite Mine and Processing Facility. The Property is close to the town of Mont-Laurier, 150 km northwest of Montréal in southern Québec.
As for the La Loutre Property, Lomiko had optioned the property from Strategic Metals in September 2014 to explore for high grade, crystalline flake graphite deposits that were near surface and for graphite flakes with high carbon purity. Lomiko is especially interested in 6 drill holes intercepts that met or exceeded the criteria jointly established by Strategic Metals and Lomiko. Further, these intercepts indicate the possibility of significant tonnage of high grade graphite near the surface
“Each of these drill holes merit further investigation,” stated Mr. A. Paul Gill, CEO, “Overall, the property has met our criteria and further exploration is warranted.”
Details of the transaction
In order to acquire (i) an additional 40% undivided interest in the la Loutre Property, thereby bringing its total interest to 80%, and (ii) an 80% undivided interest in the Lac des Iles Property (collectively,the “Option”), Lomiko will need to complete the following: pay a non refundable amount of $10,000 to Strategic Metals upon the execution of the option agreement between the parties, issue to Strategic Metals 3,000,000 common shares of Lomiko at a deemed price of $0.07 per share within five (5) business days following the receipt of the required regulatory approvals, and complete or fund $2.75 million in exploration expenses on the La Loutre Property ($1.5 million, of which $950,000 by no later than December 31, 2015 and $550,000 by no later than December 31, 2016), on the Lac des Iles Property $250,000 (of which $150,000 by no later than December 31, 2015 and $100,000 by no later than December 31, 2016) and on other mining rights of Strategic Metals ($1 million of which $700,000 by no later than December 31, 2015 and $300,000 by no later than December 31, 2016). Strategic Metals will remain the operator of the exploration programs on the properties until completion of the Option by Lomiko, at which time the parties will form a joint venture on the La Loutre Property and on the Lac des lles Property, and Lomiko will become the Operator. Strategic Metals will thereafter maintain a non dilutive 20% interest on both properties until such time as a Feasibility Study (as such term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects) is completed on the La Loutre Property or the Lac des Iles Property, as applicable, and the parties elect to proceed with the financing of the project for the construction and operation of a mine thereon.
The common shares of Lomiko issued in connection with the Option shall be subject to a regulatory hold period of four months and one day from their date of issuance. Furthermore, Strategic Metals has agreed to a voluntary 10 month period on half of the Lomiko shares received (1.5 million). The completion of the transaction is subject to the approval of the TSX Venture Exchange.
A map of holes localisation and results is available on the web site of the company at: www.csmetals.ca
COMPLETE TABLE OF MINERALIZED INTERSECTIONS FROM THE RECENT 25 HOLES DRILLING CAMPAIGN
The 2014 drilling program was managed by Consul-Teck Exploration of Val-d’Or, Quebec, who designed the drilling campaign, supervised the program and logged and sampled the core.
Consul-Teck Exploration implemented QA/QC procedures to ensure best practices in sampling and analysis of the core samples. The drill core was logged and then split, with one half sent for assay and the other retained in the core box as a witness sample. Duplicates and blanks were inserted regularly into the sample stream.
The samples in secure tagged bags were delivered directly to the analytical facility for analysis. In this case, the analytical facility was the ALS minerals in Val-d’Or, Quebec. The samples are weighed and identified prior to sample preparation. The samples are crushed to 70% minus 2 mm, then separated and pulverized to 85% passing 75µm. All samples are analyzed for Carbon Graphite using C-IR18.
Jean-Sebastien Lavallée (OGQ #773), geologist, shareholder and Chief Executive Officer of the Strategic Metals and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.
On Behalf of the Board
“A. Paul Gill”
Chief Executive Officer
We seek safe harbor. Neither 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.
SOURCE Lomiko Metals Inc.