Critical Elements Corporation and Natan Resources Ltd are pleased to announce that the Phase 1 exploration program for Duval Project in Northern Quebec is being finalized, and the Company has commenced its program in the field. The Duval Project is contiguous to and along strike with the Whabouchi project of Nemaska Lithium Inc. (“Nemaska”) who recently reported encountering a new lithium-bearing zone in the south-western end of the planned pit area (see Nemaska press release dated September 6, 2016). Nemaska reported that this new zone has been intersected in multiple drill holes at up to 500 m vertical depth, and is located at the south-western end of the pit area, approximately two kilometers from the north-eastern boundary of Duval 2,459 hectare property.
The Company and Natan have contracted Consul-Teck Exploration Inc. of Val-d’Or as operator of the project. This first phase of exploration will consist of a detailed mapping and sampling program over a grid designed to cover the entire property, over the course of approximately 4 weeks. There has been no historic Lithium focused exploration on the Duval property, however it is believed that the continuation along strike and onto the property of the similar geology as at Whabouchi, indicates the potential to locate Lithium bearing pegmatites.
Upon completion of the Phase 1 program, an updated NI 43-101 report will be completed for the property. Pending the results of the program and the recommendations of the report, the Company is fully financed to advance the program through the exploration cycle quickly.
Jean-Sébastien Lavallée (OGQ #773), geologist, shareholder and President and Chief Executive Officer of the Company and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.
Closing of first drawdown – HELM AG
The Company also announces that it has closed the transaction for the first drawdown under the credit facility agreement signed on September 19, 2016, with HELM AG. This drawdown in the amount of $1,500,000 will have a term of five years and will bear 12% interest per year. In connection with this initial drawdown, HELM AG received 2,500,000 non-transferable warrants allowing it to acquire the same number of common shares of the Company at a price of $0.77 per share.
All the securities issued under the private placement are subject to a mandatory hold period of four months plus one day following the closing of the private placement.
The Credit Facility will allow the Corporation to fund its feasibility study on the Rose lithium-tantalum project.
This transaction is subject to regulatory approval.