President & CEO Alicia Milne stated, "Our entry into the lithium sector represents a new opportunity for our shareholders. Québec is a world-leading mining country and the James Bay region is an extremely attractive investment target for lithium exploration due to its abundant hard rock lithium deposits. We look forward to unveiling the tremendous potential we see at the Mia Project."
About the Mia Lithium Property, James Bay, Quebec
The Mia property consists of 170 mineral claims located 62 km east of the community of Wemindji in the Eeyou Itschee area, James Bay, Quebec. The lithium mineral deposits are located approximately 10 kilometers from the nearest highway.
Figure 1 - Regional location of the Mia Lithium property.
The geological setting of the property is part of the Yasinski Lake area, which is characterized by narrow greenstone belts belonging to volcanic rocks and associated sediments of the Yasinski Group, intruded by a syn-tectonic tonalite and granodiorite suite. The property is located at the western end of this geologic area and includes several lithologies and favorable structures known to host spodumene-bearing pegmatites. The southern half of the property includes a northeastern outcrop of the Vieux Comptoir granite and a coincident intrusive body described as a spodumene granite in SIGEOM, the Quebec provincial government's geomining information system: https://sigeom.mines.gouv.qc.ca/signet/classes/I1108_afchCarteIntr.
Figure 2 - Mia Lithium Property
Historical work by Main Exploration Company Ltd. in 1959 (GM10200) reported several spodumene-bearing pegmatites on the property and mapped an 8.3 km trend of discontinuous pegmatite intrusions. SIGEOM lists nine metal deposits directly on the Mia Lithium property, including two lithium deposits, namely Mia Li-1 and Mia Li-2. Carte 1879 is listed as a spodumene mineral occurrence as no samples were recorded for this occurrence.
The westernmost mineral occurrences, Mia-Li1 and Mia-Li2, were sampled by Quebec government geologists in 1997 and returned grades of 0.47% Li2O and 2.27% Li2O, respectively. Numerous pegmatite intrusions have been noted along the 8.3 km trend but have never been analyzed for lithium potential. The 1959 report also describes that the pegmatite dykes are up to 30.5 meters wide and frequently zoned, with spodumene crystals up to 0.61 meters in length.
Conditions of Acquisition:
Subject to TSX Venture Exchange (the "TSXV") approval, under the terms of the Purchase Agreement, the Company will acquire the CMH Property for a total consideration of 13,000,000 common shares of the Company, $500,000 and $1,000,000 in exploration expenditures as follows: 6,500,000 shares as consideration and $200,000 due within 3 days of TSXV acceptance of the acquisition. A further 6,500,000 Consideration Shares and $150,000 to be incurred on the six month anniversary of the Effective Date; and $1,000,000 in exploration expenditures on the Property and $150,000 to be incurred on the one year anniversary of the Effective Date.
The Company will earn a 100% interest in the property on the closing date. CMH has arranged for a portion of the acquisition shares and cash to be issued and paid to CMH Nominees.
CMH will retain a royalty not to exceed 3% of smelter returns, of which up to 1% may be repurchased by the Company at any time prior to commercial production for $1,000,000. No finder's fee is payable in connection with the acquisition. The Property is subject to an existing 2% net smelter return royalty granted by CMH (as assignee) in favor of Franco-Nevada Corporation on certain mineral claims forming part of the Property and an existing 2% net smelter return royalty granted by CMH in favor of Eastmain Resources Inc. on certain mineral claims forming part of the Property. On the date of closing, the Company will assume the obligations under these existing royalties.
Concurrent with the acquisition, Queensland announced a non-brokered private placement of up to 12,500,000 units at a price of $0.10 per unit. This is expected to raise gross proceeds of up to $1,250,000. Each Unit will consist of one common share of the Company (each a "Share") and one-half of one common share purchase warrant (each a whole warrant, a "Warrant"). Each Warrant is exercisable into one additional Share at a price of $0.25 for a period of two years from the date of issuance. The Company intends to use the proceeds from the Offering for a comprehensive review of all historical data related to the Mia Lithium Property, to prepare for an exploration campaign on site and for general working capital.
Conclusion: the market for hard rock lithium projects is "red hot" right now, as they say in English. This is even more true for projects in the James Bay region where well-known companies like Patriot Battery Metals (TSXV: PMET; FRA: R9GA) or Li-FT Power (CSE: Lift, FRA: WS0) have made discoveries or acquired large pegmatite deposits, respectively. The success of these stocks could now boost Queensland Gold Hills as well, especially since there is overlap between PMET and Queensland Gold Hills shareholders. It should not be too long before the company also changes its name accordingly.
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