Acquires 41,694 Hectare Bailey Lake Pegmatite Discovery Area In Saskatchewan, Canada
ACME Lithium Inc. (CSE: ACME) (OTCQX: ACLHF) is pleased to announce that it has entered into option and purchase agreements with Saskatchewan-based Gem Oil Inc. to acquire the Bailey Lake Pegmatite Discovery Area, located in the northeastern region of Saskatchewan, Canada.
ACME has entered into two agreements, an option ("Option") to purchase a 100% interest in a core block of 13 contiguous mineral claims encompassing 25,900 hectares (or 100 square miles) and a purchase ("Purchase") of five additional contiguous claims comprised of 15,794 hectares (61 square miles). Together, the Project Claims comprise 41,694 hectares (or 161 square miles).
The Project Claims cover lithium occurrences in glacial float boulder trains near Bailey and Misaw Lakes underlain by granitic rocks of the Hudson suite that were emplaced from 1840-1818 Ma and the Nueltin suite dated at 1770-1730 Ma.
Bailey Lake Region
A boulder train in the Bailey Lake region is characterized by glacial erratics that are locally spodumene-bearing. A rounded boulder of coarse-grained porphyritic leucocratic granite has large alkali-feldspar in a medium-grained groundmass of quartz, plagioclase and spodumene with minor muscovite and lepidolite. The boulder assayed 3320 ppm Li, 2060 ppm Rb, 113 ppm Be. The highest value reported from limited sampling by Gem Oil in the Bailey Lake boulder train was 3950 ppm Li based on samples from the boulder train plot in the lithium-cesium-tantalum (LCT) pegmatite field.
Misaw Lake Region
A boulder train has been identified in the Misaw Lake region consisting of pegmatitic K-rich granitic rocks enriched in Rb (2130 ppm), Ta (120 ppm), Nb (51 ppm) and Cs (71 ppm). The boulder train is up-ice from the apparent location of a lepidolite-bearing glacial erratic located by the Saskatchewan Geological Survey in NTS 64M/15 and reported in 2004. The highest value reported from limited sampling by Gem Oil in the Misaw Lake boulder train was 3470 ppm Li from a lepidolite boulder.
Steve Hanson, President and CEO of ACME, states, "ACME has established an aggressive strategy in identifying, acquiring, and exploring high quality lithium properties in both Canada and the United States. The Bailey Lake Pegmatite Discovery area is an underexplored region with great potential and provides an important entry for ACME into the Province of Saskatchewan."
Saskatchewan is a highly prospective region for critical mineral development. The Government of Saskatchewan recently announced an expansion to its existing investment and innovation incentive programs to include eligible lithium projects with the aim to become one of the best resource development jurisdictions in the world. The addition of the Bailey Lake Project Claims to ACME's extensive North American portfolio further positions the Company to advance its goal to provide a domestic supply of lithium to the Canadian and United States markets.
ACME may exercise the Option by paying a total of CAD$450,000, issuing a total of 450,000 common shares, and incurring a total of CAD$1,554,000 in exploration and development expenditures over a three-year period. The claims are shown as Bailey Lake group 1 on the following map.
ACME may accelerate any or all the components comprising the Option Price, so as to exercise the Option at any time sooner than stated in the agreement.
Gem Oil will retain a 2% Net Smelter Returns Royalty ("NSR"), of which ACME may at any time and from time to time during the 24 months following the date of exercise of the Option buy-down or purchase up to one-half of the Royalty (1% NSR) by paying Gem Oil the sum of $2,000,000 for each one-half of one percent (0.5% NSR), for a maximum cost of $4,000,000, thereby reducing the Royalty in favor of the Holder to a minimum of one percent (1%) NSR.
ACME has also entered into a Purchase agreement with Gem Oil to acquire 5 additional Bailey Lake claims comprising of 15,794 hectares for the sum of $9,476.28 and the grant of a 1% NSR. These five claims are shown as Bailey Lake group 2 on the following map.
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