Evolving Gold announces that it has executed a purchase and sale agreement with an arm's length party to acquire 105 mineral claims in four blocks, in Quebec.
The Lithium Lakes Property (the "Property") is located about 10 kilometres ("km") north of the "Route du Nord" and between 8 and 30 km from Nemaska Lithium’s Whabouchi Project.
The Lithium Lakes main claim block extends 15 km in a NE-SW direction and 6 km in a NW-SE direction. The Property has 8 high priority targets prospective for lithium-bearing pegmatite bodies, including two that are approximately 3.5 km long that were selected based on a geological interpretation of historical magnetic, spectrometric and geochemical surveys and their association with topographic features.
Evolving Gold’s Chief Executive Officer, Mr. R. Bruce Duncan stated, "We look forward to beginning the initial exploration phase of the Lithium Lakes Project, which is in the same geological formation as Nemaska Lithium Inc.’s Whabouchi Deposit.
"Evolving Gold currently has approximately CAD $1,100,000 on hand, and continues to hold a promissory note due from GFG Resources on July 28th, 2016 for USD $600,000, thereby eliminating any need for financing at this time. The Company is currently developing plans for a field exploration program, which will be initiated as soon as possible."
According to a Canaccord Genuity report issued May 17th, 2016: "We forecast the lithium market to grow by 81% to 347kt lithium carbonate equivalent (LCE) by 2020, and by 259% to 687kt LCE by 2025, representing a Compound Annual Growth Rate of 14% across all demand sectors.
"We anticipate Li-ion battery-based electric vehicles (passenger vehicles & electric buses) to be a key driver of demand over the next decade, accounting for 38% of all lithium demand by 2025 (from ~6% in 2015). Similarly, we also anticipate significant demand for lithium from the grid storage sector, which we forecast will account for 13.6% of all demand by 2025."
Terms of the Agreement
Pursuant to the Agreement, the Company has agreed to issue to the Vendor a total of 300,000 common shares upon the approval of the transaction by the TSX Venture Exchange. The Company has also agreed to pay the Vendor CAD$40,000 with CAD$10,000 already paid in advance as a non-refundable deposit.
The Lithium Lakes Claims are subject to a one percent net smelter returns royalty (1% NSR) whereby EVG will have the right, at any time, to acquire one-half of the Royalty (0.5% NSR) by paying $500,000 to the royalty holder.
The Lithium Lakes Property is located about 10 km north of the "Route du Nord" and between 8 and 30 km from Nemaska Lithium’s Whabouchi Project. To view the Property location map, please click here http://www.evolvinggold.com/i/img/evg-figure1.jpg. The road originates from the town of Chibougamau, approximately 250 km to the SSE, and connects the village of Nemiscau and the Route de la Baie-James.
The Lithium Lakes main claim block extends 15 km in a NE-SW direction and 6 km in a NW-SE direction. A network of Hydro-Québec access roads crosses the eastern part of the Property. Several prospective areas may require the construction of ATV trails for local ground access.
The Lithium Lakes Property is comprised of 4 blocks of claims, totalling 105 active claims located on public land. To view a map of the Lithium Lakes claim locations, please click here http://www.evolvinggold.com/i/img/evg-figure2.jpg. The Property has a total area of 5,596.5 ha or 55.965 km2.
The Property geology is similar to that found at the Whabouchi Deposit, owned by Nemaska Lithium, which is located a few kilometres to the south-west.
The main basement rocks are Archean gneiss, overlain by a volcano-sedimentary belt, metamorphosed into biotite-silimanite schists to the south and adjacent to a granodioritic porphyry to the north. Fragmented horizons of amphibolitized ultramafic and Archean granitic intrusions are also part of the Property. Pegmatite sills and dykes are thought to originate from the granitic intrusions.
The Whabouchi lithium and beryl deposit owned by Nemaska Lithium is located 8 km south-west of the western boundary of the Lithium Lakes Property.