Vancouver, British Columbia – July 27, 2016 – A.I.S. Resources Limited (TSX – NEX: AIS.H) (the “Company” or “AIS”) is pleased to announce that it has entered into an Option Agreement (the “Agreement”) with DG Resource Management (DGRM) to acquire a 100% interest in the Fiedmont Lithium Property near Val d’Or, Quebec, and the Lac Manitou and Lac Volant cobalt properties located north of Sept-Îles, Quebec (collectively termed herein, the “Properties”).
Concurrent with the acquisition of the Properties, the Company will be closing a private placement financing of 3 million units at $0.10 per unit for gross proceeds of $300,000. Each unit will be comprised of one common share and one half-share purchase warrant. Each warrant is exercisable at $0.20 per common share for one year from closing of the private placement provided that if the closing price of the common shares of the Company on any stock exchange or quotation system on which the common shares are then listed or quoted is equal to or greater than Cdn $0.30 for a period of fifteen (15) consecutive trading days, the Company will have the right to accelerate the expiry of the warrants by giving notice to the holders of the warrants that the warrants will expire at 4:30 p.m. (Vancouver time) on a date that is not less than ten (10) business days from the date notice is given.
The net proceeds of the Private Placement will be used to explore the Fiedmont, Lac Volant, and Lac Manitou properties, and for general working capital purposes.
The Fiedmont Property encompasses 2,020 hectares (4,992 acres), and is located proximal to the past producing Quebec Lithium Mine, covering the same geologic contact and potential extensions to the trend of other lithium occurrences to the northwest. Historic exploration within the region has discovered numerous lithium bearing pegmatites across an approximately 20 km long trend.
The past-producing Quebec Lithium Mine, located approximately four kilometres northwest of the Fiedmont Property, contains a measured resource of 6.9 million tonnes (Mt) at 1.18% Li2O, an indicated resource of 26.3 Mt at 1.19% Li2O, and an inferred resource of 13.8 Mt at 1.21% Li2O; all with a cut-off grade of 0.8% Li2O (from Oct, 12th, 2012 Technical Report, Canada Lithium Corp.). The mine was recently acquired by Jilin Jien Nickel Industry Co. for an undisclosed amount.
Management cautions that past results or discoveries on adjacent properties may not necessarily be indicative to the presence of mineralization on the Company’s properties.
Quebec is consistently ranked as one of the top mining jurisdictions worldwide by the Fraser Institute, and is host to numerous high-quality, advanced, spodumene pegmatite projects. These include Nemaska Lithium’s Whabouchi Project, as well as the past producing Quebec Lithium Mine.
The Lac Manitou and Lac Volant cobalt properties, located north of Sept-Îles, are within an established nickel-copper magmatic sulphide terrane that was explored extensively in the late 1990’s. The area has been noted as having several geological similarities with the Voisey’s Bay District, in northern Labrador. As of 2013, proven and probable reserves at Voisey’s Bay consist of 17.2 Mt grading 2.38% Ni, 1.34% Cu, and 0.11% Co, and highlight the potential of the geological exploration model.
The Lac Manitou Property includes three claim blocks totalling 4,726 hectares (11,678). The property covers the Tortuga Showing which includes surface rock sampling of Ni-Cu bearing sulphides, with one sample returning 0.35% Co.
The Lac Volant Property includes three claim blocks totalling 1,200 hectares (2,967 acres). The property covers several known but un-tested conductors within the immediate vicinity of the Lac Volant Showing. The Lac Volant Showing was discovered as a result of the exploration in the 1990’s. Drilling of the area in 1997 returned 2.51% Ni, 1.23% Cu, and 0.13% Co over 5.5 metres.
Management cautions that past results or discoveries on adjacent properties may not necessarily be indicative to the presence of mineralization on the Company’s properties.
According to Martyn Element, President and CEO of the company “In late 2015 Goldman Sachs called Lithium the ‘New Gasoline’; as we watch this unfold and the world transition’s from hydrocarbon based fuels to more environmentally friendly green technologies, which include lithium batteries, it will place tremendous near- and long-term price pressure on the lithium supply chain. Additionally, with about 40% of the worlds cobalt demand arising from the battery industry, it is anticipated to be in a supply-demand deficit as early as 2017.”
Under the terms of the Agreement, the Company has the exclusive right to acquire an undivided 100% interest in the Properties, subject to DGRM retaining a 3.0% Gross Overriding Royalty (GORR) with respect to any and all mineral and/or metal production from the Properties. The Company will maintain the right to repurchase 1% of the GORR for $2.5 million per property for a period of 5 years from the date of execution of the Agreement. The Agreement includes the rights to all metals and minerals occurring on the Properties with the exception of limestone, dolomite, and building stone.
In order to maintain the Option Agreement in good standing and acquire an undivided 100% interest in the Properties, the Company must, during the option period, complete the following:
- On signing of this Agreement, pay the sum of $25,000 to DGRM (the “First Option Payment”);
- On the Exchange Approval Date, pay the sum of $25,000 and issue 1,400,000 Shares to DGRM (the “Second Option Payment”);
- On the first anniversary of the Exchange Approval Date, pay the sum of $75,000 and issue 1,200,000 Shares to DGRM (the “Third Option Payment”);
- On the second anniversary of the Exchange Approval Date, pay the sum of $75,000 to DGRM (the “Fourth Option Payment”) ;
- The Company shall incur in aggregate at least $500,000 of Expenditures on the Property(s) of which $250,000 will be expended in each year of the Option Agreement.
This Option Agreement is subject to TSX Venture Exchange approval. The Company will be preparing a 43-101 report with respect to one of the Properties.
Darren L. Smith, M.Sc., P.Geol., Dahrouge Geological Consulting Ltd., a Qualified Person as defined by National Instrument 43-101, has reviewed the technical information in this news release.
About A.I.S. Resources
A.I.S Resources Limited a TSX-V listed investment issuer, was established in 1967 and is managed by seasoned professionals who have a long track record of success in the capital markets. Through their extensive business network, they identify and develop early stage projects worldwide that have strong potential for growth with the objective of providing returns for shareholders.
Contact
A.I.S. Resources Limited
Martyn Element
President and CEO
T: 604-220-6266
E: melement@aisresources.com
A.I.S. Resources Limited
Marc Enright Morin
Corporate Development and Finance
T: 778-892-5455
E: memorin@aisresources.com
W: www.aisresources.com
ADVISORY: This press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated use of the proceeds of the Private Placement. Although the Corporation believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because the Corporation can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The intended use of the proceeds of the Private Placement by the Corporation might change if the board of directors of the Corporation determines that it would be in the best interests of the Corporation to deploy the proceeds for some other purpose. The forward-looking statements contained in this press release are made as of the date hereof and the Corporation undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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