ABE Resources to Acquire Nemaska Lithium's Sirmac Lithium Property
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:
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(i) |
a right of first refusal to purchase any concentrate originating from the Sirmac Property for further processing at its Shawinigan hydro-metallurgical facility; |
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(ii) |
the right to act as exclusive marketing agent for all lithium salts from concentrate originating from the Sirmac Property; |
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(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 |
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(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.
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