MONTREAL, QC / ACCESSWIRE / June 7, 2016 / VIRTUS MINERALS CORPORATION (“Virtus” or the “Company”), a private mineral exploration company, is pleased to announce that as part of its continued strategic growth into lithium, it has added significantly to its lithium portfolio by (1) the expansion of its Nemiscau Project through an option to acquire 100 % of an additional 39 mineral Claims; and (2) the acquisition of 100 % ownership of the Cascapédia Lithium Project, located on the Gaspe Peninsula of Québec.
This follows closely on the Company’s acquisition of 100 % ownership of the Nemiscau Lithium Project, which lies in close proximity and along strike from Nemaska Lithium Inc.’s (NMX-TSX:V) Whabouchi Project (see Press Release dated 12 May 2016).
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01 Expanded strategic portfolio Virtus increases total lithium exploration area to 5,444 ha with the expansion of Nemiscau and the acquisition on Cascapédia.
Nemiscau Project Expansion
The Nemiscau Vista Project (“Vista”), located in the James Bay region of northern Québec, comprises a single block of 39 Claims covering 2,078 hectares (“ha”) which are contiguous with and to the northeast of the Company’s recently-acquired Nemiscau Project. The acquisition brings the total project area to 4,744 ha (or approximately 47 km(2)).
“The Vista expansion is important for Virtus, as it extends the Company’s land holding significantly along strike and northeast of Nemaska Lithium’s Whabouchi Project–the world’s second largest and richest deposit of spodumene, a source of lithium,” commented Daniel Barrette, Virtus’s CEO. “We now hold a major land package in this highly prospective area, and we are optimistic that as such we will be successful in attracting investment and in discovery.” The Whabouchi Project holds 27.3 MT of Proven and Probable Reserves, with an average life-of-mine grade of 1.46% Li(2)O and with an estimated mine life span of 26 years (NMX Press Release, 4 April, 2016).
The combined Nemiscau and Nemiscau Vista project area is located in the Superior Craton of the Precambrian Canadian Shield. The regional geological formations consist mainly of various granite types and gneisses which are considered to be the oldest formation in the area. Amphibolites and pegmatites have been reported within the region of the Nemiscau Project. The geological formations underlying the property, as shown on government maps, comprise oligoclase gneisses and granites of various kinds.
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02 Nemiscau and Nemiscau Vista Project location This important acquisition almost doubles the Nemiscau project area, extending the land holding an additional 10 km along strike and on the same geological formation as Nemaska Lithium Inc.’s Whabouchi Project.
Spodumene, the principle lithium-bearing mineral found at the Whabouchi Mine, occurs in pegmatites hosted throughout the 7 km wide Lac des Montagnes volcano-sedimentary formation which underlies both Nemaska Lithium Inc’s property and Virtus’s Nemiscau Claims.
The Company is adjusting its exploration plan to account for this significant acquisition.
Cascapédia Project
The Company has also been successful in acquiring 100 % ownership of the Cascapédia property, comprising 14 Claims covering approximately 700 hectares (“ha”). The Project is located on the southern Gaspe Peninsula in eastern Québec.
Previous work carried out by the Ministry of Energy and Resources includes property-scale soil sampling, the results of which show encouraging anomalous lithium, interpreted as being associated with pegmatites, throughout the Claim block.
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03 Cascapédia Project location The acquisition adds to the Company’s strategic lithium portfolio.
The project area is underlain with Ordovician to Lower Silurian metasedimentary rocks of the Matapédia and Honorat Groups. Lithological units are limestone, shale, sandstone and conglomerates. A Geochemical survey carried out in 1988 returned anomalous lithium-in-soil values. A preliminary interpretation concludes that the Matapédia and Honorat Groups host lithium-bearing minerals that are most likely contained within pegmatites.
Exploration is planned to commence in Phase I in 3Q 2016, with a comprehensive data review and confirmation sampling of historic lithium in soil anomalies. All samples will be analyzed for a full suite of minerals, including lithium, rare earth elements (“REEs”) and uranium. Virtus plans to initiate exploration as soon as funding is secured.
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04 Cascapédia Project Geological survey sampling from 1988 returned anomalous lithium in soil. These results will be validated during the first field season, planned for 2016, by selective re-sampling.
“Once again, we are showing commitment to our new strategy of growth in the lithium exploration and renewable energy sector, where we are seeing success for junior exploration companies, including specifically a ‘lithium rush’ on our doorstep in Québec,” stated Daniel Barrette, Virtus’s Chief Executive Officer. “With this acquisition, and the expansion of our land holding at Nemiscau Vista, we are well-positioned to participate in this exciting period of growth.”
Mr Barrette added: “Meanwhile, Virtus continues to assess further strategic acquisitions, with the aim of adding to the portfolio and pipeline of projects.”
Terms of the Nemiscau Vista Agreement
Under the terms of the acquisition agreement to purchase Nemiscau Vista (“Nemiscau Vista Agreement”), Virtus will make staged payments totalling $110,000 as follows: (i) $25,000 on successful close of Financing, and no later than 31 July 2016 (“Closing Date”); (ii) $35,000 twelve months after the Closing Date; (iii) $50,000 twenty four months after the Closing Date; and (iv) a Net Smelter Return (“NSR”) of 2 %. Additionally, Virtus will issue (v) 1,000,000 Common Shares of its capital stock six (6) months after the Closing Date; and (vi) a further 1,000,000 Common Shares of its capital stock twelve (12) months after the Closing Date. Issuance of shares will be subject to appropriate Regulatory approvals as required at the time.
Virtus, at its sole discretion but without obligation, can purchase 1 % of the NSR for cancellation in consideration of $1,000,000. Virtus may terminate the Nemiscau Vista Agreement at any time, and at its sole discretion, by providing 30 days notice in writing.
Terms of the Cascapédia Agreement
Under the terms of the acquisition agreement to purchase Cascapédia (“Cascapédia Agreement”), Virtus will (a) make a single cash payment totalling $15,000 on close of successful financing, (which must be completed within a three month period from signing the Cascapédia Agreement, i.e., on or before 11 August 2016); and (b) issue 250,000 common shares of the Company one month following the close of a financing.
Virtus may terminate the Cascapédia Agreement at any time prior to the Final Payment, and at its sole discretion, by providing 30 days notice in writing. In the event that Virtus terminates the Cascapédia Agreement, the Company avoids any future payments, and transfers the Claims back to the vendor in good standing.
Apart from where noted, neither the Nemiscau Vista or the Cascapédia transaction are subject to Regulatory approval.
Qualified Person
Virtus has not carried out fieldwork on the Nemiscau Vista or Cascapédia Projects to date. Technical data referenced in this press release is cited from sources believed to be reliable; however, the Company has not conducted independent field sampling to verify the historically referenced lithium-in-soil values. Virtus’s disclosure of a technical or scientific nature in this press release has been reviewed and approved by Mr Stanley Robinson, P.Geo., who serves as a Qualified Person, as defined under National Instrument 43-101.
About Virtus
Virtus is a privately-held Canadian mineral exploration company which focusses on the identification and advancement of lithium projects in mining friendly jurisdictions.
Virtus holds 100% interest in the Nemiscau Project, subject to payment of $178,000 and issuance of 1 million common shares over three years; 100% of the Nemiscau Vista Project, subject to payment of $110,000 and issuance of 2 million shares over two years, plus a 2 % NSR; and 100% interest in the Cascapédia Project, subject to payment of $15,000 and issuance of 250,000 shares.
The Nemiscau and contiguous Nemiscau Vista Project area comprises 89 Claims covering 4,744 ha in the James Bay region of northern Québec. The Project is in close proximity to and on strike from the world-class Whabouchi Lithium Mine, currently being developed by Nemaska Lithium Inc. (NMX.V). Cascapédia comprises 14 Claims covering approximately 700 ha in the southern Gaspe Peninsula of eastern Québec. Nemiscau, Nemiscau Vista and Cascapédia are prospective for lithium and rare earth elements (REEs).
Virtus’s long-term growth strategy is to explore and develop high-quality projects that have the potential to produce and deliver strategic minerals to the global high-tech industrial sector.
More information on Virtus is available at www.virtusminerals.com.
Virtus Contact Information
Daniel Barrette
Chief Executive Officer
+1.514.448.2172
daniel@virtusminerals.com
Toby Mayo
President and Chief Operating Officer
toby@virtusminerals.com
FORWARD-LOOKING STATEMENTS
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in the company’s periodic filings. When used in this document, the words such as “will, could, plan, estimate, expect, intend, may, potential, should,” and similar expressions, are forward-looking statements. Information provided in this document is necessarily summarized and may not contain all available material information.
Forward-looking information and statements in this news release include, but are not limited to, statements regarding the acquisition of the Nemiscau Project and the issuance of securities, opportunities for discovery in the James Bay region of northern Québec, the future growth of Virtus, the identification, exploration, and development of high-quality mineral projects and the delivery of minerals to the global industrial sector.
All such forward-looking information and statements are based on certain assumptions and analyses made by members of Virtus’s management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors that they believe are appropriate in the circumstances. These statements, however, are subject to a variety of risks, uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements and Virtus undertakes no obligation to update such statements, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information or statements.
SOURCE: Virtus Minerals Corporation
ReleaseID: 440847
