The newly acquired properties consist of 242 mining claims covering a total area of 12,769.13 hectares located approximately 40 kilometres northwest of the town of Val d'Or
First Energy Metals Ltd. (CSE: FE) (“First Energy” or the “Company) is pleased to announce that it has entered into an agreement, dated March 12, 2021 to acquire a 100% interest into additional mining claims located near its Augustus Lithium Property in Landrienne & Lacorne-Townships, Quebec, Canada. The newly acquired properties consist of 242 mining claims covering a total area of 12,769.13 hectares located approximately 40 kilometres northwest of the town of Val d’Or on map sheets 32C/05 and 32D08. The newly acquired property claims are spread in several claim blocks and some of the claims are located adjacent to the Augustus Lithium Property claims which were optioned in 2021.
There is one historical lithium showing, namely “Lac La Motte NE”, in a claim block of the new property where exploration work in 2010 carried out by Candorado Operating Co. indicated anomalous values of lithium (Li) in the range of 342 ppm (0.073% lithium oxide) to 7900 ppm (1.7% lithium oxide) in grab surface samples (Source: GM65110, June 2010).
Mr. Gurminder Sangha, CEO of First Energy Metals stated that, “We are very pleased to acquire a large claim block in a promising lithium camp within our Augustus Lithium Property area. The Company has already commenced ground exploration work consisting of prospecting, mapping, and channel sampling. The new acquisition will give the Company a chance to expand its ground exploration footprint in a larger claim block. First Energy is in the process of compiling historical exploration and geological information on the newly acquired claims and will ask its field crew to expand field exploration work to these claims.”
First Energy acquired the mining claims comprising the Property from a group of arm’s length parties pursuant to a property purchase agreement dated March 12, 2021 (the “Effective Date”). Under the agreement, First Energy will acquire its 100% interest in the Property by making cash payments of $250,000 and issuing an aggregate of 4,100,000 common shares, at a deemed issued price of $0.37, on the Effective Date. The sellers will retain a 3.0 % NSR from any future production. First Energy has the right to reduce the 3.0% NSR to a 2.0% NSR by paying $1,000,000.
The issuance of the common shares is subject to obtaining all required regulatory approvals, including that of the CSE. The common shares will be subject to a “hold” period of four months and one date for their date of issuance.
Source: Company Press Release