ALX Resources Corp. Announces Closing of Transaction with Forrestania Resources on the Hydra Lithium Project, James Bay Region, Quebec
Vancouver, British Columbia--(Newsfile Corp. - July 10, 2023) - ALX Resources Corp. (TSXV: AL) (FSE: 6LLN) (OTC: ALXEF) ("ALX" or the "Company") is pleased to announce that it has closed a transaction with Forrestania Resources Limited, of West Perth, Australia ("Forrestania") (ASX: FRS) whereby Forrestania has exercised its option (see ALX news release dated May 8, 2023) and has earned a 50% interest in the Hydra Lithium Project ("Hydra", or the "Project"). Hydra is located in the James Bay region in the Province of Quebec, Canada, which has become one of the most attractive lithium exploration districts in the world.
Details of the Transaction
ALX acquired eight Hydra sub-projects by staking in late 2022 and early 2023. Following closing of the transaction on July 7, 2023, the Company and Forrestania now each own a 50% interest in the Project. Staking and exploration costs incurred by ALX to the end of the 2023 field season are projected to total CAD $900,000. The following terms provided for Forrestania to essentially match ALX's staking and exploration commitment. To earn its 50% interest in Hydra, Forrestania has paid to ALX:
- CAD $400,000 in cash, which includes an initial $50,000 non-refundable deposit; and
- CAD $600,000 in Forrestania common shares (the "Shares") totaling 4,579,586 Shares based on an AUD:CAD exchange rate of 0.881 and the 10-day volume weighted average price of Forrestania (AUD$0.1486 per share) up to the day prior to the closing date of the transaction.
On July 6, 2023, Forrestania held an Extraordinary General Meeting and received shareholder approval for the issuance of the Shares required to close the transaction. The newly-formed 50:50 joint venture (the "Hydra JV") will explore and administer the Project, with ALX acting as operator in exchange for an industry-standard administration fee. ALX and Forrestania will each vest with a 1.50% net smelter returns royalty.
"ALX is pleased to launch this partnership at Hydra with Forrestania," said Warren Stanyer, CEO and Chairman of ALX. "We look forward to jointly resuming our lithium exploration in the James Bay region as soon as weather and forest fire conditions allow."
ALX Sample Collection at Hydra's Sprite Project, June 2023
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Hydra Lithium Project claims in the James Bay Region, Quebec
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2023 Summer/Fall Exploration Plans
ALX commenced its current exploration at Hydra for lithium-cesium-tantalum ("LCT") pegmatites on May 31, 2023, but the access restrictions imposed by the Government of Quebec due to forest fires in the region led to the suspension of the program on June 4, 2023. Upon the resumption of exploration, the Hydra JV will focus on systematic prospecting, geological mapping and geochemical sampling. In conjunction with its own consulting geologist, Robert Campbell, P.Geo., ALX has contracted a Quebec-based geological consulting company and a helicopter for the prospecting program, which is initially based from the town of Radisson, Quebec.
Forrestania shares ALX's opinion that Hydra holds potential for LCT pegmatites, supported by the encouraging exploration reports from, amongst others, the nearby Corvette Lithium Project owned by Patriot Battery Metals Inc., which has reported highly significant lithium drilling intersections during the past 12 months, including: 159.7 metres @ 1.65% Li2O and 86.2 metres @ 2.13% Li2O1. ALX's Volta sub-project lies 20 kilometres to the east of the Corvette Deposit and is 1 kilometre north of the Corvette property boundary.
Similarly, the Viper and Cobra sub-projects are located 50 kilometres north of Q2 Metals Corp.'s Mia Lithium Property, where numerous spodumene-bearing pegmatite outcrop samples have returned significant lithium grades of up to 4.37% Li2O2. Both Viper and Cobra are hosted by a similar greenstone belt setting.
1 TSXV:PMET news release August 31, 2022 "Patriot announces best drill intercept to date - 1.65% Li2O over 159.7m, including 4.12% Li2O over 9.0m - at the Corvette Property, Quebec."
2 TSXV:QTWO news release December 21, 2022 "Queensland announces sampling results averaging 2.65% Li2O from the Mia LI-1 occurrence at its Mia Lithium property in Quebec, Canada"
About Hydra
Hydra consists of eight sub-projects totaling 29,262 hectares (72,306 acres) known as Volta (4,751 ha.), Echo (5,566 ha.), Nike (2,462 ha.), Sprite (3,437 ha.), Cobra (4,249 ha.), Viper (1,280 ha.), Python East (3,218 hectares) and Python West (4,298 ha.), located within a fertile lithium exploration district that hosts the James Bay, Rose and Whabouchi lithium deposits and numerous other lithium showings.
The ALX sub-projects were selected for staking based upon the presence of historical lithium, cesium and tantalum lake sediment anomalies and by a review of public-domain geological mapping. ALX utilized an artificial intelligence ("A.I.") search of Quebec government assessment files that found the Python West lithium showing in a pegmatite discovered during a historical uranium exploration program. A 2008 sample from the Python West pegmatite returned an anomalous value of 330 parts per million lithium. A proprietary A.I. process for pegmatite detection by KorrAI of Halifax, NS is ongoing to prioritize target definition for the 2023 prospecting program.
To view maps and more information on Hydra, visit our website at: https://alxresources.com/hydra-lithium/
NationaI Instrument 43-101 Disclosure
The technical information in this news release has been reviewed and approved by John Charlton, P.Geo., a consultant to ALX, who is a Qualified Person in accordance with the Canadian regulatory requirements set out in National Instrument 43-101.
Management cautions that historical results were collected and reported by operators unrelated to ALX and have not been verified nor confirmed by its Qualified Person but they create a scientific basis for ongoing work in the Hydra project area. Management further cautions that historical results or discoveries on adjacent or nearby mineral properties are not necessarily indicative of the results that may be achieved on ALX's mineral properties.
About ALX
ALX is based in Vancouver, BC, Canada and its common shares are listed on the TSX Venture Exchange under the symbol "AL", on the Frankfurt Stock Exchange under the symbol "6LLN" and in the United States OTC market under the symbol "ALXEF".
ALX's mandate is to provide shareholders with multiple opportunities for discovery by exploring a portfolio of prospective mineral properties, which include uranium, lithium, nickel-copper-cobalt and gold projects. The Company uses the latest exploration technologies and holds interests in over 220,000 hectares of prospective lands in Saskatchewan, a stable Canadian jurisdiction that hosts the highest-grade uranium mines in the world, a producing gold mine, and production from base metals mines, both current and historical.
ALX's uranium holdings in northern Saskatchewan include 100% interests in the Gibbons Creek Uranium Project, the Sabre Uranium Project, the Bradley Lake Uranium Project and the Javelin and McKenzie Lake Uranium Projects, a 40% interest in the Black Lake Uranium Project (a joint venture with Uranium Energy Corporation and Orano Canada Inc.), and a 20% interest in the Hook-Carter Uranium Project, located within the uranium-rich Patterson Lake Corridor, with Denison Mines Corp. (80% interest) as operator of exploration since 2016.
ALX owns 100% interests in Canadian lithium exploration properties staked in 2022 and 2023 known as the Hydra Lithium Project, located in the James Bay region of northern Quebec, the Crystal Lithium and Reindeer Lithium Projects in northern Saskatchewan, and the Anchor Lithium Project, located in Nova Scotia.
ALX also owns 100% interests in the Firebird Nickel Project (now under option to Rio Tinto Exploration Canada Inc., who can earn up to an 80% interest), the Flying Vee Nickel/Gold and Sceptre Gold projects, and can earn up to an 80% interest in the Alligator Lake Gold Project, all located in northern Saskatchewan, Canada. ALX owns, or can earn, up to 100% interests in the Electra Nickel Project and the Cannon Copper Project located in historic mining districts of Ontario, Canada, the Vixen Gold Project (now under option to First Mining Gold Corp., who can earn up to a 100% interest in two stages), and in the Draco VMS Project in Norway.
For more information about the Company, please visit the ALX corporate website at www.alxresources.com or contact Roger Leschuk, Manager, Corporate Communications at: PH: 604.629.0293 or Toll-Free: 866.629.8368, or by email: rleschuk@alxresources.com
On Behalf of the Board of Directors of ALX Resources Corp.
"Warren Stanyer"
Warren Stanyer, CEO and Chairman
FORWARD-LOOKING STATEMENTS
Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements in this news release include: ALX's 2023 exploration plans at the Hydra Lithium Project, ALX's ability to continue to expend funds at that project, and contributions from Forrestania to fund exploration at the Hydra Lithium Project. It is important to note that the Company's actual business outcomes and exploration results could differ materially from those in such forward-looking statements. Risks and uncertainties include that ALX may not be able to fully finance exploration on our exploration projects, individually or with the assistance of Forrestania, including drilling; our initial findings at our exploration projects may prove to be unworthy of further expenditures and that the potential of the property may be different than expected; commodity prices may not support further exploration expenditures; exploration programs may be delayed or changed due to any delays experienced in consultation and engagement activities with First Nations and Metis communities and the results of such consultations, and economic, competitive, governmental, societal, public health, environmental and technological factors may affect the Company's operations, markets, products and share price. Even if we explore and develop our projects, and even if lithium, uranium, nickel, copper, gold or other metals or minerals are discovered in quantity, ALX's projects may not be commercially viable. Additional risk factors are discussed in the Company's Management Discussion and Analysis for the Three Months Ended March 31, 2023, which is available under the Company's SEDAR profile at www.sedar.com. Except as required by law, we will not update these forward-looking statement risk factors.
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
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