NEMASKA EXPLORATION INC. (TSX VENTURE:NMX) has announced that it has signed a purchase agreement with Everton Resources Inc. concerning the Sirmac Lithium property.
The property is composed of 15 mining claims, covering about 645 hectares, located in SNRC sheet 32J11, province of Quebec. The property lies approximately 130 kilometres south of Nemaska's Whabouchi lithium/beryllium deposit, alongside the Route de Nord. It hosts 12 spodumene bearing pegmatites, on which historical channel sample assays have returned 4.52% Li2O over 14 m.
"This purchase is strategic move on our part to obtain a property that can produce technical-grade spodumene, opening up the glass market to Nemaska. To date, the metallurgy results from the spodumene at our Whabouchi project indicates that battery-grade lithium carbonate and lithium concentrate for ceramic applications can be produced from our ore. This purchase allows us to cover the full spectrum of the global lithium demand." commented Mr. Guy Bourassa, President and CEO of Nemaska.
After careful consideration, Nemaska has purchased 100% interest in the property for $30,000 cash and the issuance of 500,000 shares and 500,000 share purchase warrants at a price of $0.60 per share for a period of 24 months from closing. The agreement includes an adjustment clause for the number of shares to be issued in favour of Everton if the Corporation has not started the process to separate its lithium related assets from its other exploration assets on or before June 30, 2011. In such case, the Corporation will issue an additional 250,000 shares and 250,000 share purchase warrants. The property is subject to a 1% NSR royalty that can be purchased for $1,000,000. The shares and share purchase warrants to be issued will be subject to an agreed 6 month hold period from issuance. This agreement is subject to the approval of the regulatory authorities.
Source: NEMASKA EXPLORATION INC.