U.S. Lithium Resources Inc. (the “Company”) is pleased to announce it entered an agreement to acquire 100% of the Gochagar Lake Nickel-Copper-Cobalt project claims from Diamond Hunter Ltd (the ”Vendor”).
The project, which consists of four claims covering 3,759 hectares, is located in northern Saskatchewan approximately 75 km north of the town of La Ronge. Historical exploration has identified semi-massive and massive Ni-Cu deposits with significantly elevated levels of Cobalt, a vital component in the manufacture of the latest generation of lithium ion batteries.
This acquisition aligns with the Company’s strategy to find, acquire and develop mineral deposits that are key to the growing energy storage market, particularly electric vehicles. Cobalt and nickel, along with lithium, are all critical components in the rapidly developing rechargeable battery market.
Greg Rotelli, Chief Executive Officer of U.S. Lithium, commented, “We are excited to be acquiring this large block of claims in the Saskatchewan province of Canada. Cobalt, as well as nickel and copper, are vital raw materials in the green energy space. US Lithium remains committed to helping satisfy the needs of this growing industry.”
He added, “With over 50% of the world’s cobalt currently supplied from the conflict-stricken Democratic Republic of the Congo, we welcome the opportunity to explore for this critical mineral in the mining friendly jurisdiction of Saskatchewan.”
Following review of the property, Eric Allison, Director of LITH and Chief Geologist said, “The initial review of the historical technical data indicates favorable conditions for the presence of a viable Ni-Cu-Co deposit. Application of the latest technology and exploration methods should significantly increase our understanding of the deposit and I look forward to our initial results and planned future drill programs. The proximity to the historic Rottenstone Ni-Cu Mine and the Lynn Lake Mining Center puts us in the same neighborhood with other high- quality massive sulphide deposits.”
Under the terms of the agreement, the Company will issue 8 million shares to the Vendor who will retain a 2% Net Smelter Royalty on the current claims as well as on any additional claims acquired by the Company within 5 km of the current claim boundaries. The Company will have the right to buy back 1% of the NSR for a purchase price of US$1.25 million. In addition, the Company agrees to incur development expenditures of not less than US$50,000 on or prior to June 1, 2017 and not less than US$225,000 on or prior to July 12, 2018.