Toronto, Ontario – June 26, 2023- Metal Energy Corp. (the "Company" or "Metal Energy") (TSXV: MERG, OTCQB: MEEEF) is pleased to announce a new project acquisition ("SourceRock" or the "Project") prospective for lithium ("Li") brines in the Thunder Bay-Nipigon area of northwestern Ontario. The Project is exceptionally large, covering 913 square kilometres within an area measuring approximately 10 to 20 km wide by 95 km long (Figure 1).
"The SourceRock Li brine project covers a dominant land position of untested regional lithium brine targets within the Proterozoic Sibley sedimentary basin (the "Basin") that is on a regional scale equivalent in size to Chile's Salar de Atacama central salt body, the largest Li brine producing jurisdiction in the world. Not only do we have a large aerial coverage, SourceRock covers the deepest parts of the Basin with sedimentary thickness ranging from 500 m to 1,000 m, enhancing Li brine prospectivity. Exploration in the area has reported considerable evidence of supersaturated saline solutions within the Basin sediments and even the underlying Li-pegmatite-rich basement rocks. Halite (sodium, "Na") and sylvite (potassium, "K") veins, bedded layers, interstitial cements, and even encrustations on drill core and drill rods have all been mentioned in a variety of reports. Both Na and K are important pathfinders for Li within brine solutions, and higher concentrations of each of these elements supports the potential for higher concentrations of Li. With drill permits already in-hand, we are very excited to advance the SourceRock project with our first drill program," said James Sykes, CEO of Metal Energy.
For details on the Company's new SourceRock project, watch this video:
The video identifies:
1. Numerous geological reasons support the high-potential for Li brines within the Project;
2. A promising comparison with Chile's Salar de Atacama;
3. The Project is in a favourable jurisdiction with a long mining history, infrastructure, and recent Government support for Li projects.
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SourceRock Exploration Plans
SourceRock is a drill-ready project with an exploration permit already in-hand from the Ontario Ministry of Mines for up to 20 drill pads. Initial geophysical data compilation has already identified saline brine drill targets on the Project. The Company is currently engaged with local Indigenous groups, communities, and stakeholders, and anticipates a drill program to commence after sufficient and meaningful consultation has been completed.
SourceRock Option Agreement
On June 16, 2023 (the “Effective Date”), Metal Energy entered into an Option Agreement with an arms length vendor (the “Vendor”) to acquire an undivided 100% interest in SourceRock. Upon execution of the Option Agreement, the Company completed a $50,000 cash payment to the Vendor and committed to a staking program valued at greater than $100,000 representing 2,000 claim units registered under the Company.
Under the remaining terms of the agreement, the Company must issue;
- 3,000,000 common shares of Metal Energy upon acceptance of the Option Agreement by the TSXV;
- 1,500,000 warrants to the Vendor. Each warrant is exerciseable to acquire one common share of the Company at an exercise price of $0.10 per share. The warrants will expire after 36 months from the Effective Date; and
- $500,000 worth of common shares on or before the first anniversary of the Effective Date. Such shares will be valued at a price per share equal to the volume weighted trading price of the Company’s shares on the TSXV for 20 trading days prior to the issue date of such shares.
All issued common shares will be subject to such hold periods that are prescribed by applicable securities laws.
Metal Energy will be the operator of the Project and as such will have the rights and responsibility to execute all work programs on the Project.
The Vendor has retained a 3% net smelter returns royalty (the “Royalty”) as part of the Option Agreement. The Company has the right to purchase 1% of the Royalty for $500,000 up until the fourth anniversary of the Effective Date. Upon completion of the first 1% of the Royalty, the Company retains the right to purchase the remaining 2% of the Royalty for $5,000,000 up until the tenth anniversary of the Effective Date.
About the SourceRock Li Brine Project
SourceRock encompasses 91,288 hectares within the Proterozoic Sibley sedimentary basin, Thunder Bay-Nipigon area, Ontario. The Project has excellent access to infrastructure and capacity that has supported previous exploration programs and mine development, including year-round highway, railroad, and seaport access, with power and natural gas lines crossing the Project.
About Metal Energy Corp.
Metal Energy is a nickel and battery metal exploration company with three projects in politically stable Canadian jurisdictions; Manibridge (Ni-Cu-Co-PGE) in Manitoba, and SourceRock (Li-Na-K) and Strange (Ni-Cu-Co-PGE) in Ontario. The Manibridge Project is 85% owned by Metal Energy and 15% owned by Mistango River Resources Inc. (CSE: MIS). Both SourceRock and Strange Projects are subject to earn-in agreements where the Company can acquire 100% exploration rights to each project.
The technical information contained in this news release has been reviewed and approved by Charles Beaudry, P.Geo., Director for Metal Energy, and a Qualified Person as defined in "National Instrument 43-101, Standards of Disclosure for Mineral Projects."
For further information, please contact:
Metal Energy Corp.
MERG on the TSXV
James Sykes, CEO
Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"), including details about the business of the Company. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, operational risks, competition from other industry participants, stock market volatility. Although the Company believes that the expectations in its forward-looking statements are reasonable, its forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. Risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our public disclosure documents available at www.sedar.com including the Filing Statement dated November 15, 2021. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release