VANCOUVER, British Columbia, April 21, 2023 (GLOBE NEWSWIRE) --
AZINCOURT ENERGY CORP.
(“Azincourt” or the “Company”)
(TSX.V: AAZ, OTCQB: AZURF)
, is pleased to announce that it has entered into a definitive property option agreement, dated April, 19, 2023, with Atlantis Battery Metals Corp. (the “
Optionor
”), an arms-length party, pursuant to which it has been granted the option (the “
Option
”) to acquire up to a seventy-five percent interest in three exploration licenses covering 300 contiguous mineral claims located in the Province of Newfoundland and collectively known as the “Big Hill Lithium Project” (the “
Project
”).
The Big Hill Lithium Project is a 7,500-hectare Lithium-Cesium-Tantalum (“LCT”) exploration property located in southwestern Newfoundland, Canada, along the south side of the Hermitage Flexure, approximately five kilometres south of the Benton/Sokoman JV partnership (“the Alliance”) discovery of the Kraken Lithium Pegmatite Field (1.04% Li 2 O over 15.23m, 8.4m of 0.95% Li 2 O, and 5.5m of 1.16% Li 2 O*). The Benton/Sokoman JV partnership has also discovered the cesium-tantalum-rubidium-lithium Hydra Dyke which is located 12 kilometres northeast of the Kraken Lithium Pegmatite Field. Channel samples returned results as high as 8.76% Cs 2 O, 0.41% Li 2 O, 0.025% Ta 2 O 5 , and 0.33% Rb 2 O over 1.20m*.
The Kraken Lithium Pegmatite discovery features numerous granitic dykes and unmapped pegmatites in a variety of rock types with a strike length up to 40 kilometres in length. The Big Hill Lithium Property is host primarily in the Burgeo granite with large enclaves of older mafic paragneiss. The boundary between the two properties is marked by the Hermitage Flexure, which in part appears to be locally segmented by sub-parallel fault segments, and the intrusive contact between the Burgeo granite and older stratigraphy. Similar structural controls are recognized within the global tectonic boundary stretching from the Carolina Tin-Spodumene Belt, through Avalonia in Nova Scotia, to Newfoundland, and then on to Laurentia (Leinster) on the east side of the Atlantic Ocean.
Image 1: Location of the Big Hill Lithium Project, Southern Newfoundland, Canada
At the Big Hill Lithium Project numerous granite dykes can be seen cutting the Burgeo granite. Coarse-grained pegmatite dykes greater than 2 meters wide and 20 meters long occur south of the property and are anticipated to be present on the Big Hill exploration licences.
Recent preliminary prospecting at Big Hill has identified four known target areas, based on extrapolation of bedrock geology, structural disaggregation of stratigraphic blocks, and apparent folding and late shear faulting. Similar structural elements are observed in the Kraken Lithium Pegmatite field although host rocks differ. These targets are known as the River, Road, MK, and Ridge Targets and will be the focus the initial exploration.
Initial soil and rock assay results, along with other geological information are expected by mid-June. Other information suggesting potential for lithium-bearing pegmatite mineralization comes from extrapolation and evaluation of multiple shear fault orientations projected onto the property. Strike length of the targets ranges from 1.5-5.5 kilometres.
Image 2: Priority Target Areas, Big Hill Lithium Project, Newfoundland, Canada
The area around the Big Hill Lithium Project has seen extensive mineral exploration over the past several decades. The Peter Snout mineral occurrences immediately east of the Kraken Lithium Pegmatite discovery and the White Bear River area further to the northeast have seen exploration for many years for polymetallic mineralization, but not for lithium until 2021. The Grey River area to the southeast has been explored for many years for tungsten and gold. The Hope Brook Mine, located to the southwest of Big Hill, operated from 1987 until 1997 and produced 752,163 ounces of gold**.
“We’re pleased to add this project to our portfolio. The potential at Big Hill is significant,” said president and CEO, Alex Klenman. “The area is underexplored for lithium, and thanks to the highly impactful Kraken find we feel it’s extremely prospective for additional, substantial discoveries. The project has size, numerous priority targets, and the potential for many more. With year-round access this project gives us the ability to be active outside of our normal, limited, winter drilling window at the East Preston uranium project in Saskatchewan.
“The team at the optionor, Atlantis Battery Metals, has extensive exploration success in the lithium space and will provide ongoing technical support. We share the belief that Big Hill is a meaningful exploration opportunity, and their ongoing technical involvement was an important consideration in making the deal. We’re excited to utilize their expertise going forward. Overall, this is a great opportunity for Azincourt, and we look forward to announcing immediate exploration plans in the coming weeks,” continued Mr. Klenman.
The terms of the Option provide that the Optionor will act as operator throughout the option period, in conjunction and close collaboration with Azincourt’s management team. The Project was identified by the team at the Optionor, which includes Mr. Nick Rowley and Mr. James Abson.
Mr. Rowley is an experienced corporate executive with a strong financial background with over 16 years’ experience specializing in marketing and sales of various raw materials, corporate advisory, M&A transactions, and equities markets. His most recent position was Director – Corporate Development of ASX-listed lithium company, Galaxy Resources Limited. Mr. Rowley through this role saw the implementation and closing of the A$6 billion merger with Orocobre Limited, which created the world’s fifth largest lithium producer, Allkem, in mid-2021.
Mr. Abson is a professional geologist with over 28 years of experience in multi-commodity mining and mineral exploration, specializing in Lithium and Tantalum. He was previously Chief Geologist and exploration manager for Bikita Minerals Lithium in Zimbabwe, where he primarily oversaw the Geology department that undertook the pit reserve and resource expansion and hard rock mineral resource exploration for spodumene. Over the last 15 years, Mr. Abson has also been involved in the exploration and assessment of various lithium plus tin-tantalum pegmatite projects in Afghanistan and Africa, including the Manono lithium project in the DRC, Desert Lion and UIS in Namibia and the Arcadia lithium mine in Zimbabwe.
Mr. Abson was educated at Rhodes University, South Africa, and holds a BSc. Honours degree in Geology. He has also been registered as a Professional Natural Scientist for over 13 years.
Option Terms
Pursuant to terms of the Option, the Company can acquire a sixty percent interest in the Project by completing a series of cash payments and share issuances, and incurring certain expenditures on the Project, as follows:
|
Cash
Payments |
Common
Shares |
Exploration
Expenditures |
|||
| On the grant of the Option | $75,000 | 3,850,000 | Nil | ||
| Within 12 months | $75,000* | 4,500,000 | $250,000 | ||
| Within 24 months | $75,000* | 5,500,000 | $1,000,000 | ||
| Within 36 months | Nil | Nil | $2,000,000 | ||
* Subject to an additional top-up payment in the event the volume-weighted average closing price of the common shares of the Company is less than $0.05 in the five trading days preceding any subsequent share issuance to the Optionor.
Following completion of these requirements, the Company will hold a sixty percent interest in the Project. The Company will then have a further option, exercisable for a period of thirty business days, to acquire a further fifteen percent interest in the Project by completing a one-time cash payment to the Optionor equivalent to the fair market value of the interest at the time. In the event the Company elects to exercise this additional option, the fair market value will be determined by a mutually agreeable independent third-party valuator.
All securities issued in connection with the Option will be subject to a four-month-and-one-day statutory hold period. A finder’s fee totaling $20,000 cash and 1,310,000 common shares is payable by the Company to an arms-length third party in connection with the Option, of which $20,000 cash and 935,000 shares is payable upon closing of the Option with the remaining common shares issuable upon completion of the second anniversary payments and expenditures needed to maintain the Option in good standing. The Option remains subject to the approval of the TSX Venture Exchange.
* Sokoman Minerals Corp., news release March 28, 2023
** Big Ridge Gold Corp., website presentation
Qualified Person
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the Company by Paul K. Smith, a Qualified Person as defined by National Instrument 43-101.
About Azincourt Energy Corp.
Azincourt is a Canadian-based resource company specializing in the strategic acquisition, exploration, and development of alternative energy/fuel projects, including uranium, lithium, and other critical clean energy elements. The Company is currently active at its joint venture East Preston uranium project, while pursuing an option agreement on the Hatchet Lake uranium project, both located in the Athabasca Basin, Saskatchewan, Canada.
ON BEHALF OF THE BOARD OF AZINCOURT ENERGY CORP.
“Alex Klenman”
Alex Klenman, President & CEO
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.
This press release includes “forward-looking statements”, including forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Azincourt. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed, and actual future results may vary materially.
For further information please contact:
Alex Klenman, President & CEO
Tel: 604-638-8063
info@azincourtenergy.com
Azincourt Energy Corp.
1430 – 800 West Pender Street
Vancouver, BC V6C 2V6
www.azincourtenergy.com
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/b9179162-0281-4171-8936-1a8da8f94b61
https://www.globenewswire.com/NewsRoom/AttachmentNg/a07f02eb-61de-4327-937d-cb8fe7ec33eb
