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Vancouver, BC, Aug 14, 2023 - (ACN Newswire) - Hertz Lithium Inc. (CSE: HZ) (OTCQB: HZLIF) (FSE: QE2) ("Hertz" and/or the "Company") is pleased to announce the acquisition of the option (the "Option") to acquire a 100% interest in the Patriota Lithium Project. The Company acquired the Option pursuant to the terms and conditions of an option assignment agreement (the "Assignment Agreement") entered into among the Company, Brascan Resources Inc. ("Brascan"), BHBC Exploracao Mineral LTDA ("BHBC"), and RTB Geologia e Mineracao LTDA ("RTB", and together with BHBC, the "Optionors"). Pursuant to the Assignment Agreement, the Company has acquired Brascan's rights, including the Option, granted pursuant to an option agreement (the "Option Agreement") entered into among Brascan, BHBC, and RTB.
HIGHLIGHTS:
- Hertz has entered into an assignment agreement pursuant to which it has acquired the option to acquire the prospective Patriota Lithium Project in the mining friendly state of Minas Gerais in Brazil.
- These tenements are strategically situated proximal to the highly prolific 'Eastern Brazilian Pegmatite Province" (the "EBPP") and within the Aracuai Pegmatite District (the "APD"). The EBPP is the largest lithium pegmatite province of South America and one of the most important pegmatite provinces around the world.
- The Patriota Lithium Project is a 2,964 hectare (contiguous 29 square kilometers) mineral claim block in Brazil's Minas Gerais State, a mining-friendly jurisdiction located approximately 45 kms from Sigma Lithium Corp.'s Grota do Cirilo property, the largest lithium hard rock deposit in the Americas.
- The Patriota Lithium Project is located near other lithium exploration and production projects operated by Sigma Lithium Corp., Lithium Ionic, Latin Resources Limited and the Companhia Brasileira de Litio Ltda.'s Cachoeira lithium mine. Although the Company believes the spatial association with these important advancing lithium deposits and mines supports the potential of the Patriota Lithium Project, is not necessarily indicative of the mineralization on the property.
- The location boasts advantageous infrastructure, comprising well-developed highways, access to hydroelectric power from the grid, water availability, and convenient proximity to commercial ports and residential townships.
- The option represents Hertz's first Brazilian project which is complementary to the Company's Lucky Mica Lithium Project in Arizona which continues to move through the permitting and progress to trenching phase
- Hertz plans to commence rapid exploration in the coming weeks and months.
Through the acquisition of the Option, Hertz gains access to a strategically located and highly prospective lithium project situated in the mining friendly state of Minas Gerais, Brazil. A key advantage lies in the projects strategic location within the APD and proximal to the renowned EBPP, one of the most important pegmatite provinces around the world and a globally recognized hub for hard-rock lithium spodumene deposits. Notably, this region accounts for 100% of all government presently recognized lithium reserves in Brazil, making it highly valued for its abundant spodumene pegmatites.
Over the past two years, Brazil's importance in the lithium exploration space has expanded significantly with the tremendous success of Sigma Lithium Corp., followed by Latin Resources Limited, and the up and coming Lithium Ionic Corp..
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Figure 1: Eastern Brazilian Pegmatite Province Lithium District
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Figure 2: Map of Patriota Lithium Project
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Details of the lithium resources reported in Figures 1 and 2 are provided in the various company websites listed below. No qualified person from Hertz Lithium has to verified the reported resource estimates, and the estimates are not necessarily indicative of the mineralization on the property on the Patriota Project. Hertz is only reporting these resource estimates as to support the regional potential for significant lithium mineralization.
Source: www.cblitio.com.br/mineracao/
Source: Lithium Ionic Corporate Presentation: https://lithiumionic.com/investors/presentations/
Source: https://www.latinresources.com.au/salinas-lithium-project-brazil/
Source: Sigma Lithium Corp www.sigmalithiumresources.com/grota-do-cirilo/
Geological Detail
The Patriota Lithium Project under Option for Hertz Lithium shows strong high-level prospectively criteria within the Aracuai Pegmatite District (APD) and proximal to prolific EBPP. The tenements are strategically located within the Salinas Formation metasedimentary rocks that were deposited prior to the Aracuai orogeny. The Salinas Formation hosts the most prolific lithium pegmatites in the region. Pegmatite swarms intruded the region during the collisional Neoproterozoic to post-collisional Paleoproterozoic Aracuai orogeny. L-C-T pegmatites (Lithium - Cesium - Tantalum) include the pegmatitic granites surrounding the richest lithium pegmatites in the SIGMA/CBL/Lithium Ionic region, as well as the nearest mapped (exposed) granite to the Patriota Lithium Project (16 kilometres to the north). The regional granite rocks are classified into five supersuites (G1, G2, G3, G4, and G5). Groups G3, G4 and G5 formed during the post-collisional episode associated with the Gondwana Supercontinent's Trans-Amazonian event (CPRM 2016a, 2016b). Notably, the potential pegmatite corridor associated with lithium mineralized pegmatites with the G4 supersuite.
Hertz believes the association with proximal G4 suite granites supports the potential for a favourable association with regional pegmatite swarms within the tenement areas. It is worth noting that both Sigma Lithium's Grota do Cirilo spodumene mine and Latin Resources Colina Project are surrounded by the same G4 supersuite granites as those mapped most closely to the tenements that Hertz holds the Option to acquire. These compelling geological associations point to lithium potential within these exploration areas.
Hertz acknowledges that the tenements under Option have not undergone any exploration activities to date, and as a result, the existence of pegmatites and/or lithium mineralisation remains uncertain. Nonetheless, a comprehensive desktop review of the regional and local geology, along with the presence of significant spodumene mining and development activities in close proximity, offers supplementary evidence supporting the potential of the tenements.
Transaction Structure and Consideration
As consideration for the acquisition of the Option and pursuant to the terms and conditions of the Assignment Agreement, the Company has agreed to pay an aggregate of $148,000 in cash, as follows:
- reimburse Brascan $3,300 in claim maintenance within two days following the execution of the Assignment Agreement;
- pay Brascan $15,000 within two days following the execution of the Assignment Agreement;
- pay Brascan $105,000 in exchange for Brascan issuing 3,000,000 common shares to the Optionors, within five business days following confirmation that the shares have been issued; and
- pay Brascan $25,000 on or before 45 days following the execution of the Assignment Agreement.
In order to exercise the Option in accordance with the terms and conditions of the Option Agreement, the Company must:
- pay BHBC $50,000 by September 20, 2023;
- pay BHBC $3,300 by September 20, 2023 to cover mineral right taxes;
- incur $100,000 in exploration expenditures on the Patriota Lithium Project by September 20, 2023;
- pay BHBC $3,300 to cover mineral right taxes up to June 30, 2024;
- pay BHBC $50,000 by October 1, 2024;
- incur $100,000 in exploration expenditures on the Patriota Lithium Project by September 30, 2024; and
- pay $50,000 by September 30, 2025.
The Optionors will retain a 2% NSR with the Company having the option to repurchase 1% of the NSR for a cash payment of $500,000 for a period of two years after the commencement of commercial production.
Additionally, upon the confirmation of the existence of spodumene from surface sample assays results on the Patriota Lithium Project grading minimum 1% lithium, the Company will be required to pay Brascan $100,000 in cash.
Mr. Kal Malhi, Chairman and Director of Hertz, commented, "We are laser focused to build Hertz Lithium into a multi-faceted lithium mineral exploration company with our Lucky Mica Lithium Project in Arizona and now the Patriota Lithium Project in Brazil and our Penn State Lithium Extraction Patent Licence. We continue to seek additional high-quality projects across the world and build our lithium development portfolio into a strong offering for investors seeking an opportunity to invest into the generational investment opportunity that the lithium sector offers."
About Hertz Lithium Inc.
The Company is a British Columbia based mineral exploration company primarily engaged in the acquisition and exploration of mineral properties. The Company's lithium exploration projects include, the Lucky Mica Project, is located along the Arizona Pegmatite Belt in the Maricopa County of Arizona, USA and the Patriota Lithium Project, located along the Eastern Brazilian Pegmatite Province, in Brazil. The Company is also working with Penn State University's College of Earth and Mineral Science department to develop a novel patent-pending hard rock lithium extraction technology.
Qualified person
Harrison Cookenboo Ph.D., P. Geo. and a Qualified Person as defined under National Instrument 43-101 Standards of Disclosure for Mineral Projects, has reviewed the scientific and technical information in this news release and has approved the disclosure herein.
For further information, please contact Hertz Lithium or view the Company's filings at www.sedarplus.ca.
On Behalf of the Board of Directors
Kal Malhi
Chief Executive Officer and Director
Phone: 604-805-4602
Email: kal@bullruncapital.ca
https://hertzlithium.com
REFERENCES:
CPRM 2016A: MAPA GEOLOGICO E DE RECURSOS MINERAIS DE LITIO:
CPRM 2016B: PROJETO AVALIACAO DO POTENCIAL DO LITIO NO BRASIL.
The Canadian Securities Exchange has not in any way passed upon the merits of the matters referenced herein and has neither approved nor disapproved the contents of this news release.
Cautionary Statement Regarding "Forward-Looking" Information
This news release includes certain statements that may be deemed "forward-looking statements". All statements in this new release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
Topic: Press release summary
Source: Hertz Lithium Inc
Sectors: Metals & Mining
https://www.acnnewswire.com
From the Asia Corporate News Network
Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
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