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% Li2O over 15.23m, 8.4m of
0.95% Li2O, and 5.5m of 1.16% Li2O*). 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% Cs2O, 0.41% Li2O, 0.025%
Ta2O5, and 0.33% Rb2O 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 & CEOTel:
604-638-8063info@azincourtenergy.com
Azincourt Energy Corp.1430 – 800 West Pender
StreetVancouver, BC V6C
2V6www.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
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