Snow Lake Expands Its Lithium Portfolio with Mineral Claims Next to the Tanco Mine
Snow Lake Resources Ltd. (NASDAQ: LITM) has entered into a binding letter of intent with ACME Lithium Ltd. to acquire a 90% undivided interest in a group of mineral claims adjoining the Tanco lithium mine in Southern Manitoba. The project consists of 31 mineral claims and includes a first stage option to acquire a 51% interest upon incurring CAD$600,000 in exploration expenditures within the next 12 months, and a second stage option to acquire an additional 39% interest upon incurring an additional CAD$1,200,000 in exploration expenditures within the next 24 months.
The acquisition of a 90% interest in mineral claims adjacent to the Tanco lithium mine by Snow Lake Lithium from ACME Lithium represents a strategic expansion in the lithium market. This move indicates Snow Lake's commitment to scaling up its resource base, which is a critical factor in the burgeoning electric vehicle (EV) and renewable energy sectors. Lithium, being a key component in batteries, has seen increasing demand and this acquisition could position Snow Lake favorably to meet future market needs.
From a financial perspective, the staged investment of CAD$600,000 followed by an additional CAD$1,200,000 in exploration expenditures reflects a calculated risk approach. This phased investment strategy allows Snow Lake to validate the project's potential before committing further resources. Investors should note that exploration projects carry inherent risks, but successful exploration can significantly enhance the asset's value.
Long-term, the success of this project could lead to increased production capacity and revenue streams for Snow Lake. However, the timeline from exploration to production can be extensive and market conditions for lithium could change. Stakeholders should consider the risks associated with exploration, commodity price volatility and potential regulatory changes in their assessments.
The Shatford Lithium Project's location within a known lithium production region suggests high geological potential. The proximity to the Tanco mine, a long-standing lithium producer, provides a positive indication of the area's mineralization. The Greer-Shatford Shear Zone's geological features, such as pegmatite dykes and favorable host rocks, are conducive to lithium deposits.
It is essential to recognize that the lithium market is highly competitive, with several major players. Snow Lake's entry into this space will require them to navigate market dynamics, including supply and demand fluctuations and competition for resources. The strategic value of this acquisition lies in the potential to increase Snow Lake's resource reserves, which is a key determinant of a company's valuation in the mining sector.
Successful exploration could lead to a significant upward revaluation of Snow Lake's assets, but it is also crucial to acknowledge the technical and financial challenges of bringing a new mining project to fruition. The partnership with Critical Discoveries for data review and exploration program development could mitigate some of these risks by leveraging expertise in the field.
Exploration and mining activities have environmental implications that must be considered. The environmental impact of lithium mining includes water usage, land disruption and potential pollution. Snow Lake's exploration program should adhere to stringent environmental regulations and best practices to minimize negative impacts.
The demand for lithium, driven by the EV and renewable energy markets, reflects a shift towards sustainable energy sources. However, the sustainability of lithium mining processes is under scrutiny. Stakeholders are increasingly concerned about the environmental and social governance (ESG) aspects of mining operations. Snow Lake's approach to exploration and potential production should align with ESG principles to maintain investor confidence and comply with regulatory standards.
In the long run, if Snow Lake successfully brings the Shatford Lithium Project into production with a strong ESG framework, it could benefit from the growing market for responsibly sourced lithium. This could also provide a competitive advantage as consumers and manufacturers prioritize sustainability in their supply chains.
12/20/2023 - 06:00 AM
Winnipeg. Manitoba--(Newsfile Corp. - December 20, 2023) - Snow Lake Resources Ltd., d/b/a Snow Lake Lithium™ (NASDAQ: LITM) ("Snow Lake " or the "Company ") is pleased to announce that it has entered into a binding letter of intent ("LOI ") with ACME Lithium Ltd. ("ACME Lithium ") to acquire a 90% undivided interest in a group of mineral claims 100% owned by ACME that adjoin the Tanco lithium mine in Southern Manitoba (the "Project ").
Highlights
31 mineral claims directly adjoining the Tanco lithium mine in Southern Manitoba First Stage Option to acquire a 51% interest in the Project upon incurring CAD$600,000 in exploration expenditures within the next 12 months Second Stage Option to acquire an additional 39% interest in the Project upon incurring an additional CAD$1,200,000 in exploration expenditures within the next 24 months ACME Lithium retains a 10% free-carried interest in the Project CEO Remarks
"We are extremely pleased to have entered into this letter of intent with ACME Lithium Ltd. for a large, highly prospective land position immediately adjacent to the Tanco Mine ," commented Frank Wheatley, CEO of Snow Lake. He continued: "This agreement with Acme Lithium reflects our disciplined approach to expanding our portfolio of Manitoba lithium projects to complement our Snow Lake Lithium™ project."
Agreement to Acquire Mineral Claims Adjacent to Tanco Mine
Snow Lake and ACME Lithium have entered into a binding letter of intent (the "LOI ") with respect to 37 mineral claims 100% owned by ACME Lithium with 31 that adjoin the southern boundary of the Tanco lithium mine in Southern Manitoba.
The project (the "Shatford Lithium Project ") consists of the following mineral claims:
Shatford Lake: 21 claims totalling 8,883 acres (3,595 hectares) Birse Lake: 10 claims totalling 5,196 acres (2,102 hectares) Cat-Euclid: 6 claims totalling 2,930 acres (1,186 hectares) Key terms of the LOI are included in Appendix A.
Shatford lake Project
The Shatford Lake and Brise Lake mineral claims are set forth on the map below:
https://images.newsfilecorp.com/files/9547/191728_294742e944166a94_001full.jpg
The Cat Lake / Euclid Lake mineral claims are set forth on the map below:
https://images.newsfilecorp.com/files/9547/191728_294742e944166a94_002full.jpg
Geological Setting of Shatford Lithium Project
The Shatford Lithium Project straddles a 15 kilometers long structural trend of the Greer-Shatford Shear Zone with numerous pegmatite dykes and favorable host rocks. It is situated in the southern limb of the Bird River greenstone belt in southeastern Manitoba. The region hosts hundreds of individual pegmatite bodies, many of which are classified as complex rare-element Lithium-Cesium-Tantalum (LCT) pegmatites — known to account for a quarter of the world's lithium production.
The northeast corner of the Shatford Lithium Project borders the mineral lease of the Tanco mine, with the Buck, Pelgi, and Dibs pegmatites nearby.
Proposed Work Program
Snow Lake intends to build upon the prior work undertaken by ACME Lithium on the Project, and its immediate focus will be to undertake a detailed review of all data, samples, assays and reports prepared by ACME Lithium. Upon completion of that review, Snow Lake will design an exploration program to both build upon ACME Lithium's work, and to undertake a regional exploration program over the balance of the Project to identify potential drill targets.
Snow Lake also intends to use the services of Critical Discoveries to assist in reviewing ACME Lithium's exploration data, as well as to provide input to the development of the 2024 exploration program on the Shatford Lithium Project.
Tanco Mine
Tantalum Mining Corporation of Canada Ltd. ("Tanco ") is 100% owned and operated by Sinomine (Hong Kong) Rare Metals Resource Co., and operates the Tanco mine located on the northwest shore of Bernic Lake, Lac du Bonnet, Manitoba. The Tanco mine pegmatite orebody was discovered in the late 1920's and the Tanco mine has been in commercial operation producing lithium in Manitoba for more than 50 years. In addition to lithium concentrate for the lithium battery market, the Tanco mine produces cesium-based products for the North American market.
More Information
For more information on ACME Lithium, refer to their website at www.acmelithium.com .
For more information on Tanco, refer to their website at www.tancomine.com .
About Snow Lake Resources Ltd.
Snow Lake is a Canadian lithium development company listed on NASDAQ: LTIM with 2 hard rock lithium projects, the Thompson Brothers project and the Grass River project (together the "Snow Lake Lithium™ Project "), in the Snow Lake region of Northern Manitoba. Snow Lake is focused on advancing the Snow Lake Lithium™ Project through subsequent phases of development and into production in order to supply the North American electric vehicle and energy storage markets.
The wholly owned Snow Lake Lithium™ Project now covers a 59,587 acre site that has only been 1% explored and contains an identified-to-date 8.2 million metric tonnes measured, indicated and inferred resource at between 0.99% and 1.13% Li2O.
Forward-Looking Statement This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995. that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements, including without limitation statements with regard to Snow Lake Lithium™. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will," "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward- looking statements are based on Snow Lake Resources Ltd.'s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Some of these risks and uncertainties are described more fully in the section titled "Risk Factors" in our registration statements and annual reports filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Snow Lake Resources Ltd. undertakes no duty to update such information except as required under applicable law.
For more information, please contact:
Investors: ir@snowlakelithium.com Media: media@snowlakelithium.com Twitter: @SnowLakeLithium www.SnowLakeLithium.com
Schedule A — Key Terms of the Agreement
Snow Lake and ACME Lithium have entered into a binding letter of intent ("LOI ") on the following key terms and conditions.
1. Project : The Shatford Lithium Project, located in Southern Manitoba, consists of 37 mineral claims 100% owned by ACME Lithium and described in Schedule B.
2. Letter of Intent : Snow Lake and ACME Lithium have entered into the LOI, which provides:
payment of CAD$20,000 upon signing the LOI for an exclusive 30 calendar day period; and payment of CAD$130,000 upon singing an option agreement (the "Option Agreement ") 3. Option
ACME Lithium will grant Snow Lake the option (the "Option ") to earn up to a 90% undivided interest in the Shatford Lithium Project upon the following terms and conditions:
a) First Stage Option
Snow Lake will have the option (the "First Stage Option ") to earn a 51% undivided interest in the Shatford Lithium Project upon:
incurring exploration expenditures of a minimum of CAD$600,000 on the Shatford Lithium Project within 12 months of signing the Option Agreement; and payment to ACME Lithium of an additional CAD$150,000 in cash on or before the first anniversary of signing the Option Agreement b) Second Stage Option
After exercise of the First Stage Option, Snow Lake will have the option (the "Second Stage Option ") to earn an additional 39% undivided interest in the Shatford Lithium Project upon:
incurring additional exploration expenditures of a minimum of CAD$1,200,000 on the Shatford Lithium Project within 24 months of signing the Option Agreement; and payment to ACME Lithium of an additional CAD$200,000 on or before the second anniversary of signing the Option Agreement Any expenditures incurred by Snow Lake in excess of the minimum expenditures required to exercise the First Stage Option will be credited or carried forward against the expenditure commitment for the Second Stage Option.
4. Formation of Joint Venture
Once Snow Lake has earned a 90% undivided interest in the Shatford Lithium Project, and completed a positive feasibility study on the Shatford Lithium Project, a joint venture (the "Joint Venture ") between Snow Lake and ACME Lithium will be formed for the further development of the Shatford Lithium Project, the detailed market standard terms and conditions of which will be agreed at the time of formation of the joint venture.
5. Interests in Joint Venture
Upon formation of the Joint Venture:
Snow Lake will hold a 90% interest, and ACME Lithium will hold a 10% interest in the Joint Venture; Snow Lake's interest will be a 90% participating interest in the Joint Venture, and Snow Lake will fund 100% of all expenditures until the completion of a positive feasibility study on the Shatford Lithium Project; and ACME Lithium's interest will be a 10% free carried interest, without the need to contribute to expenditures until the completion of a feasibility study on the Shatford Lithium Project. 6. Right of First Refusal
Once the Option Agreement is signed, Snow Lake will have a right of first refusal (the "ROFR ") to acquire ACME Lithium's 10% free carried interest in the Shatford Lithium Project if ACME Lithium decides to dispose of its interest in the Shatford Lithium Project pursuant to an unsolicited bona fide third-party offer.
7. Royalty
The Euclid-Cat Lake and Shatford Lake mineral claims are subject to a 2% gross overriding royalty on lithium or other metals in favour of Lithium Royalty Corporation.
Schedule B — Mineral Claims
CLAIM NAME NUMBER DATE HECTARES EVENT # ACME 1 MB13931 SEPT16/21 256 522669 ACME 2 MB13932 SEPT16/21 247 522658 ACME 3 MB13933 SEPT17/21 168 522667 ACME 4 MB13934 SEPT18/21 152 522671 ACME 5 MB13935 SEPT18/21 139 522668 ACME 6 MB13936 SEPT17/21 220 522672 ACME 7 MB13937 SEPT22/21 180 522830 ACME 8 MB13938 SEPT22/21 132 522840 ACME9 MB13939 SEPT21/21 92 522841 ACME 10 MB13940 SEPT21/21 120 522831 ACME 11 MB13941 SEPT23/21 182 522832 ACME 12 MB13942 SEPT23/21 156 522842 ACME 13 MB13943 SEPT24/21 208 522843 ACME 14 MB13944 SEPT24/21 140 522833 ACME 15 MB13945 SEPT25/21 248 522834 ACME 16 MB13946 SEPT25/21 192 522844 ACME17 MB13947 SEPT26/21 163 522845 ACME 18 MB13928 OCT 1/21 210 522846 ACME 19 MB13949 SEPT29/21 192 522847 ACME 20 MB13950 SEPT30/21 240 522848 ACME 21 MB13951 SEPT29/21 192 522835 ACME 22 MB13952 SEPT30/21 240 522836 ACME 23 MB13953 SEPT26/21 142 522837 ACME 24 MB13954 SEPT28/21 160 522849 ACME 25 MB13955 SEPT28/21 160 522838 ACME 26 MB13926 SEPT27/21 111 522850 ACME 27 MB13927 SEPT27/21 135 522839 ACME 27 MB13927 SEPT27/21 135 522839 ACME 28 MB14707 MAR14/23 256 549435 ACME 29 MB14708 MAR14/23 182 549436 ACME 30 MB14709 MAR14/23 64 549437 ACME 31 MB14704 FEB06/23 224 546505 ACME 32 MB14705 FEB10/23 234 547020 ACME 33 MB14706 MAR14/23 245 549430 ACME 34 MB14701 MAR14/23 239 549431 ACME 35 MB14702 MAR14/23 247 549434 ACME 36 MB14703 FEB06/23 256 546503 ACME 37 MB14710 MAR14/23 140 549438
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/191728
What is the latest announcement from Snow Lake Resources Ltd. (NASDAQ: LITM)?
Snow Lake Resources Ltd. (NASDAQ: LITM) has entered into a binding letter of intent with ACME Lithium Ltd. to acquire a 90% undivided interest in a group of mineral claims adjoining the Tanco lithium mine in Southern Manitoba.
What is the project's first stage option?
The project includes a first stage option to acquire a 51% interest upon incurring CAD$600,000 in exploration expenditures within the next 12 months.
What is the geological setting of the Shatford Lithium Project?
The Shatford Lithium Project straddles a 15 kilometers long structural trend of the Greer-Shatford Shear Zone with numerous pegmatite dykes and favorable host rocks.
Who operates the Tanco mine?
The Tanco mine is 100% owned and operated by Sinomine (Hong Kong) Rare Metals Resource Co.
