Lomiko Metals Inc. (TSX.V: LMR) (“Lomiko Metals” or the
“Company”) is pleased to announce that it has entered into an
agreement (the “Acquisition Agreement”) with SOQUEM and a private
owner to acquire 100% of 17 mineral claims forming the Carmin
project (the “Property”), subject to customary closing conditions
expected to be completed within the next 3 to 4 weeks (the “Closing
Date”). These claims cover 678 hectares (6,780 Sq km). The
agreement was signed on March 2, 2023.
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Figure 1 – Carmin Property location
outlining historic drilling
The Property is located 40 km west of Mont Tremblant and
situated north-east and contiguous to the La Loutre property where
Lomiko has mineral rights (see Figure 1 below). The Property is
accessible by road and forest road from Lac-des-Plages and the
northern end of the claims are partially contiguous to the
Papineau-Labelle Wildlife Reserve. Lomiko commits to not exploring
or developing within 1km of park boundaries. The La Loutre and
Carmin project site are located within the Kitigan Zibi Anishinabeg
(KZA) First Nation’s territory and the KZA First Nation is part of
the Algonquin Nation. KZA territory is situated within the
Outaouais and Laurentides region.
Belinda Labatte, CEO and director of Lomiko stated: “Our team is
developing a regional and responsible approach to natural flake
graphite development via organic growth of its La Loutre project,
its six regional claims and this new claim acquisition. The Carmin
property has the potential to add significant mineral resources and
mineral reserves to La Loutre’s existing resource base. This can
positively impact La Loutre project economics, and importantly, it
provides for additional responsible site planning in the region. We
also welcome SOQUEM as a shareholder of Lomiko and look forward to
working with SOQUEM in the long term. The regional geophysical
surveys being anticipated to be carried out in the region, in 2023,
mark significant opportunities and actions towards creating a
regional approach to developing natural flake graphite, that if
developed can feed into the North American electric vehicle supply
chain.”
Carmin Property and historical works
All work including the mineral resource and mineral reserve
estimates are considered to be historic. The Property consists of
the Carmin deposit which consists of three previously identified
mineral occurrences identified as site A, B and C; where the main
mineral occurrence is identified as Site A. The historical estimate
was completed by SOQUEM in December 1990, using sections and
polygonal methods accounting for the blocks between sections 975N
and 1425N using 2.6t/m3 density. The property has been worked on
since the late 1980s and early 1990s when a pre-feasibility study
was published. This historic pre-feasibility study wasn’t completed
in compliance with current CIM guidelines and NI-43-101 reporting
requirements.
The historic mineral resource estimate is based on Site A and
the 91 boreholes drilled for a total of 5,688 metres, with the
average hole depth of 62.5 m. The historic mineral resource
estimate for Site B is based on 27 holes for a total of 2,937m
metres and average hole depth of 108.8m.
The original historical estimate contemplated certain
assumptions where the mineral resources are stated as Proven and
Probable resources for Sites A and B. This historic pre-feasibility
study wasn’t completed in compliance with current CIM guidelines
and NI-43-101 reporting requirements.
Site A: total in place 1.55 Mt at 10.0% Cg
- Proven: 1.47 Mt at 10.29% Cg (holes drilled at 25 meters
spacing) – likely measured
- Probable: 0.073 Mt at 4.10% Cg
- In-situ graphite content: 155,000t
Site B: in place
- Proven 123,000t at 13.1% Cg
- Probable: 39,000t at 13.1% Cg
Site C: undetermined mineral resources
Lomiko has not done sufficient work to classify the historical
estimate as a current resource, however the Company believes the
original results can be relied upon to determine a subsequent
exploration drill program, with the objective of updating the
historical estimate using NI 43-101 guidelines. The Company is not
treating the historical estimate as a current resource (“Historical
estimate” – a non-verified estimate prepared prior to issuer’s
interest in the property).
A historic Pre-feasibility study was completed in March 1991 by
SNC Lavallin Inc. This historic pre-feasibility study wasn’t
completed in compliance with current CIM guidelines and NI-43-101
reporting requirements. The study considered only Site A and
outlines:
- Exploitable reserves: 1,013,000 tonnes at 8.75% Cg, diluted
using 15% dilution at 1% Cg
- Cut-off content: 3% Cg
- Strip ratio waste: ore: 2:1
- Plant production of 87,200t or 15,000 tons of concentrate per
year, mine life of 6 years
The historic metallurgical test results completed as part of
this study by Centre de Recherches Minérales (“CRM”) in December
1990 for SOQUEM indicated the following:
- Overall recovery: 85%
- Concentrates grading 95% Cg
- +48 meshes: 16.5%
- -48 +100 meshes: 28.5%
- -100 meshes: 55%
Definitive Agreement terms
Lomiko to acquire SOQUEM’s interest in all mineral rights
forming part of the Property in consideration of (i) $50,000
payable in cash to SOQUEM in a single payment on the Closing Date;
(ii) the issuance to SOQUEM of 1,250,000 Shares; and (iii) the
granting to SOQUEM of a royalty of 0.75% on net smelter revenues
(NSR) on the Property. However, Lomiko retains the exclusive and
irrevocable right and option to redeem one-third of the Royalty,
thus reducing the Royalty to 0.50% NSR, for a total amount of
$250,000 payable in cash to SOQUEM.
Lomiko to acquire private owner’s interest in the mineral rights
forming part of the Property in consideration of (i) the issuance
to the private owner of 1,250,000 Shares; and (ii) the granting to
the private owner of a 0.75% royalty on the NSRs on the Property.
However, Lomiko retains the exclusive and irrevocable right and
option to redeem one-third of the royalty, thereby reducing the
royalty to 0.50% NSR, for a total amount of $250,000 payable in
cash to the private owner.
The transaction is subject to customary closing conditions
including the approval of the TSX Venture Exchange. The shares
issuable by Lomiko under this transaction will be subject to a
regulatory hold period of 4 months and 1 day following the Closing
Date. Lomiko is not paying any finders fees in order to acquire the
property.
Next steps
Lomiko intends to review existing data and continue with work
required to update the historical mineral resource and issue a NI
43-101 compliant technical report in 2023, subject to available
financing. It may also conduct metallurgical testing of the
prospect to confirm historical results.
In addition, and as mentioned in its press release dated
February 21, 2023, Lomiko plans to advance exploration on its six
graphite minerals properties, acquired in the spring of 2022 in the
Grenville Metasedimentary Graphite Belt. The objective of the
Carmin acquisition and the regional exploration is to develop a
sustainable, responsible approach and resilient strategic stockpile
of natural flake graphite that can feed into the graphite market at
large, and the regional market for electric vehicles battery
manufacturing.
Qualified Person for technical content at Carmin
The technical information in this press release has been
prepared and approved by Ms. Gordana Slepcev P.Eng., who is the
Company’s COO and registered professional engineer in the province
of Ontario, a qualified person as defined by NI 43-101
guidelines.
About Lomiko Metals Inc.
The Company holds mineral interests in its La Loutre graphite
development in southern Quebec. The La Loutre project site is
located within the Kitigan Zibi Anishinabeg (KZA) First Nation’s
territory. The KZA First Nation is part of the Algonquin Nation and
the KZA traditional territory is situated within the Outaouais and
Laurentides regions. Located 180 kilometres northwest of Montreal,
the property consists of one large, continuous block with 76
mineral claims totalling 4,528 hectares (45.3 km2).
The Property is underlain by rocks belonging to the Grenville
Province of the Precambrian Canadian Shield. The Grenville was
formed under conditions that were very favourable for the
development of coarse-grained, flake-type graphite mineralization
from organic-rich material during high-temperature
metamorphism.
Lomiko Metals published a July 29, 2021 Preliminary Economic
Estimate (PEA) which indicated the project had a 15-year mine life
producing per year 100,000 tonnes of graphite concentrate at 95% Cg
or a total of 1.5Mt of graphite concentrate. This report was
prepared as National Instrument 43-101 Technical Report for Lomiko
Metals Inc. by Ausenco Engineering Canada Inc., Hemmera Envirochem
Inc., Moose Mountain Technical Services, and Metpro Management
Inc., collectively the Report Authors.
In addition to La Loutre, Lomiko is working with Critical
Elements Lithium Corporation towards earning its 70% stake in the
Bourier Project as per the option agreement announced on April
27th, 2021. The Bourier project site is located near Nemaska
Lithium and Critical Elements south-east of the Eeyou Istchee James
Bay territory in Quebec which consists of 203 claims, for a total
ground position of 10,252.20 hectares (102.52 km2), in Canada’s
lithium triangle near the James Bay region of Quebec that has
historically housed lithium deposits and mineralization trends.
On behalf of the Board, Belinda Labatte CEO and Director, Lomiko
Metals Inc.
For more information on Lomiko Metals, review the website at
www.lomiko.com.
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" within
the meaning of the applicable Canadian securities legislation that
is based on expectations, estimates, projections and
interpretations as at the date of this news release. The
information in this news release about the Company; and any other
information herein that is not a historical fact may be
"forward-looking information" (“FLI”). All statements, other than
statements of historical fact, are FLI and can be identified by the
use of statements that include words such as "anticipates,"
"plans," "continues," "estimates," "expects," "may," "will,"
"projects," "predicts," “proposes”, "potential," "target,"
"implement," “scheduled”, "intends," "could," "might," "should,"
"believe" and similar words or expressions. FLI in this new release
includes, but is not limited to: expected timing of completion of
the closing conditions in connection with the acquisition and
closing of the acquisition, expected costs of exploration and
timing to achieve certain milestones, timing for completion of
exploration programs; the Company’s ability to successfully fund,
or remain fully funded for the implementation of its business
strategy and for exploration of any of its projects (including from
the capital markets); any anticipated impacts of COVID-19 on the
Company’s business objectives or projects and the Company's
financial position or operations. FLI involves known and unknown
risks, assumptions and other factors that may cause actual results
or performance to differ materially. This FLI reflects the
Company’s current views about future events, and while considered
reasonable by the Company at this time, are inherently subject to
significant uncertainties and contingencies. Accordingly, there can
be no certainty that they will accurately reflect actual results.
Assumptions upon which such FLI is based include, without
limitation: the ability of the Company to meet the closing
conditions of the acquisition, including regulatory approval, and
complete the transaction within the anticipated timing; ability to
implement its business strategy and to fund, explore, advance and
develop each of its projects, including results therefrom and
timing thereof; uncertainties related to receiving and maintaining
exploration, environmental and other permits or approvals in
Quebec; any unforeseen impacts of COVID-19; impact of increasing
competition in the mineral exploration business, including the
Company’s competitive position in the industry; general economic
conditions, including in relation to currency controls and interest
rate fluctuations.
The FLI contained in this news release are expressly qualified
in their entirety by this cautionary statement, the
“Forward-Looking Statements” section contained in the Company’s
most recent management’s discussion and analysis (MD&A), which
is available on SEDAR at www.sedar.com, and on the investor
presentation on its website. All FLI in this news release are made
as of the date of this news release. 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 information. The Company does not
undertake to update or revise any such forward-looking statements
or forward-looking information contained herein to reflect new
events or circumstances, except as may be required by applicable
securities laws.
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 news release. No stock exchange, securities
commission or other regulatory authority has approved or
disapproved the information contained herein.
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version on businesswire.com: https://www.businesswire.com/news/home/20230303005236/en/
Gordana Slepcev at 647-391-7344 or Belinda Labatte at
647-402-8379 or at 1-833-456-6456 or 1-833-4-LOMIKO or email:
info@lomiko.com
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