VAL-D'OR, QC, Dec. 14, 2017 /CNW/ - ABE Resources Inc. (TSXV:
ABE) (OTC: ABEPF) (the "Company" or "ABE") is pleased
to announce the signing of a definitive asset purchase agreement
(the "Agreement") for the arm's length acquisition (the
"Transaction") of a 100% undivided interest in the Sirmac
Lithium Property (the "Sirmac Property") from Nemaska
Lithium Inc. ("Nemaska
Lithium") (TSX: NMX) (OTC: NMKEF) (FRANKFURT: N0T). The
Sirmac Property consists of 24 mining claims having a total area of
approximately 1,100 hectares located approximately 180 kilometres
North-West of Chibougamau, in the
province of Québec.
Under the Agreement, ABE will make a $250,000 cash payment and issue 15,000,000 common
shares of ABE to Nemaska Lithium and assume a pre-existing 1% net
smelter return royalty on certain of the claims comprising the
Sirmac Property. The Transaction remains subject to the approval of
the TSX Venture Exchange.
"We identified the Sirmac Property as our top lithium project
pick and initiated discussions with Nemaska Lithium," commented
Yves Rougerie, President and CEO of
ABE. "The property has an historical resource of 318,324 tonnes
grading 2.04% Li2O for the #5 Dyke completed in 1994*
and has at least twelve sparsely outcropping pegmatite dykes, most
of which have yet to be tested by drilling. Nemaska completed more than $2-million of exploration work on the Sirmac
Property after its acquisition in 2011 consisting of 72 shallow
drill holes totalling 3,415 meters and extensive trenching and
channel sampling of the #5 Dyke and we plan to build on that work
immediately."
Under the Agreement, Nemaska Lithium will have a pre-emptive
right to participate in any future equity financing as long as it
holds at least 10% of ABE's issued and outstanding common shares.
In addition, Nemaska Lithium was granted the following additional
rights:
(i)
|
a right of first
refusal to purchase any concentrate originating from the Sirmac
Property for further processing at its Shawinigan
hydro-metallurgical facility;
|
(ii)
|
the right to act as
exclusive marketing agent for all lithium salts from concentrate
originating from the Sirmac Property;
|
(iii)
|
the right to receive
a 2% marketing fee, in cash, on the gross proceeds from the sale of
lithium products derived from concentrate originating from the
Sirmac Property sold by Nemaska Lithium (and from any concentrate
otherwise sold by ABE that is not purchased by Nemaska Lithium);
and
|
(iv)
|
a right of first
refusal to reacquire the Sirmac Property in the event that ABE
wishes to sell or otherwise assign and transfer its right, title
and interest in and to the Sirmac Property.
|
"We believe this transaction will foster and accelerate the
development of the Sirmac Property, in all likelihood years ahead
of when we could develop it, given our focus on building the
Whabouchi Mine and Shawinigan
plant. Eventually, Sirmac concentrate could represent an
additional, reliable source for Nemaska Lithium. We remain very
bullish on the demand for lithium salts and as such, we can
contemplate increasing our production capacity in Shawinigan in the future and potentially
needing additional sources of concentrate," commented Guy Bourassa, President and CEO of Nemaska
Lithium.
Mr. Rougerie added, "With the addition of the Sirmac Property we
will actively explore two highly prospective battery material
properties. The Company will continue to explore the recently
acquired Dôme Lemieux property in
the Gaspésie region of eastern Québec. We should have results from
the 3D model on the Dôme Lemieux
out shortly. Both copper and lithium are very important minerals in
lithium ion batteries and we are well positioned in both
commodities with such excellent projects."
About ABE Resources Inc.
ABE Resources Inc. is a Québec mineral exploration company
focused on the discovery and development of mineral deposits of
economic potential primarily in the province of Québec. The Dôme
Lemieux property was acquired when
ABE acquired Pioneer Resources Inc. The property is in the same
structural corridor that hosts the Gaspé Copper Mine in
Murdochville, 50 km to the ENE,
which produced approx. 142 Million Tonnes @ 0.85% Cu from 1955 to
1999, the Madeleine mine, 18 km to the NNE, which produced approx.
8 Million Tonnes @ 1.08% Cu and 9.0 g/t Ag prior to 1982 and the
Sullipek deposit, 15 km to the E, which has historical copper
resources.* These three deposits are not within the property
limits. Please note that the results obtained at these three
deposits are not necessarily an indication of the mineralization
present on the Dôme Lemieux
property.
The information of scientific or technical information in this
release has been reviewed and approved by Yves Rougerie, geo, President and CEO of the
Company. Mr. Rougerie is a "qualified person" as defined in
National Instrument 43-101 Standards of Disclosure for Mineral
Projects ("NI 43-101").
*The above-noted mineral resources estimates are historical
estimates and should not be relied upon, as they pre-date and are
not compliant with NI 43-101. While the Company considers these
historical estimates to be relevant to investors as they may
indicate the presence of mineralization, a qualified person has not
done sufficient work for ABE to classify the historical estimates
as current "mineral resources" or "mineral reserves" (as defined in
NI 43-101) and the Company is not treating these historical
estimates as current "mineral resources" or "mineral
reserves".
For further information on the Company, please visit our website
at www.aberesources.ca or contact us at info@aberesources.ca.
NEITHER THE TSXV NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED IN THE POLICIES OF THE TSXV) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS
RELEASE.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This
news release includes certain "forward-looking statements" under
applicable Canadian securities legislation. Forward-looking
statements include, but are not limited to, statements with respect
to: the ability of ABE to obtain all required approvals and
consents and to complete the Transaction; the terms and conditions
of the proposed Transaction; and the business and operations of ABE
upon completion of the proposed Transaction. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable, are subject to known
and unknown risks, uncertainties, and other factors which may cause
the actual results and future events to differ materially from
those expressed or implied by such forward-looking statements. Such
factors include, but are not limited to: general business,
economic, competitive, political and social uncertainties; delay or
failure to receive board, shareholder or regulatory approvals; and
the ability of ABE to execute and achieve its business objectives.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. ABE disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
SOURCE ABE Resources Inc.