Hinterland Metals Inc. is pleased to announce that it has signed a Letter of Intent with Beaufield Resources Inc., whereby Hinterland may earn an interest in the "Lithium Rights", defined as all elements, metals and minerals excluding precious metals (i.e., gold, silver, platinum and palladium), and base-metals (i.e., cobalt, copper, lead, nickel and zinc), attached to Beaufield's 92-claim (4441-hectare) Troilus property (the "Property") located in the Frotet-Evans area of Quebec, approximately 100 kilometres north of Chibougamau. An all-season gravel road starting from Chibougamau passes through the western part of the Property.
The Troilus claims completely surround the Moblan lithium development project held by Perilya Ltd. (60%) and Soquem Inc. (40%). A mineral resource estimate of the Moblan deposit was reported in May 2011 with a 0.60% Li2O cut-off grade as summarized in the following table (Perilya website consulted July 11, 2016):
Although documented lithium mineralization is present on the Moblan project in several zones immediately adjacent to the boundary with the surrounding Troilus property, very little previous exploration work has been completed on the Troilus claims. Hinterland plans to commence work immediately with a compilation of available geological data and generation of lithium exploration targets.
Pursuant to the LOI, Hinterland can earn a 50% interest in the Lithium Rights by issuing to Beaufield an aggregate of 2,000,000 shares (500,000 upon closing) and completing work expenditures of $1,000,000 ($200,000 in the first year) over a three year period. Upon completion of the 50% earn-in, Hinterland and Beaufield will form a joint venture with initial respective participating interests to be 50%. The transaction is subject to completion of due diligence, final documentation and approval of the TSX Venture Exchange.