A SMART MOVE BY MANAGEMENT TO FOCUSS ON LITHIUMdevelopment as the best chance of success for shareholders.
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ILI) (OTCQB: ARXRF) (the "Company" or "Imagine") announced today that it has signed amended agreements to divest of all of its holdings in the Red Lake area to Trillium Gold Mines Inc. (TSXV: TGM) ("Trillium"), and Pegasus Resources Inc. ("Pegasus"). Further to its news release dated December 15, 2021, Trillium and Imagine have signed an amended Definitive Agreement (the "Definitive Agreement") whereby Trillium will acquire a majority of Imagine's property holdings known as the Eastern Vision Project, located in the Confederation Lake assemblage of the Birch-Uchi greenstone belt in the Red Lake District, Ontario. Under the terms of the Definitive Agreement, Trillium will acquire 13,958 hectares between the Fredart, Confederation North, and Confederation South properties for a consideration of 2,800,000 common shares of Trillium and $175,000 in cash.
In addition, Imagine has entered into an Amending, Settlement and Termination Agreement with Pegasus (the "Pegasus Agreement") with respect to the February 3, 2020 agreements relating to the Garnet Lake property and portions of the Fredart property (the "Option Agreements"). Under the Pegasus Agreement, Pegasus has agreed to issue to Imagine 5,000,000 common shares of Pegasus in exchange for delivery of certain payment obligations under the Option Agreements and Imagine relinquishing its right to complete the option for the claims under the Option Agreements. The Definitive Agreement and the Pegasus Agreement remain subject to TSX Venture Exchange approval.
J.C. St-Amour, President of Imagine commented, "The transactions to divest of the Red Lake properties gives Imagine, through its share ownership in Trillium and Pegasus, exposure to a larger consolidated land package extending greater than 100 km in length in the Red Lake area. This also allows us to focus our exploration efforts on our 100% owned Jackpot Lithium project where a drill program is actively underway."
The Jackpot Lithium property, located in the Georgia Lake Area about 140 km NNE of Thunder Bay, Ontario, is approximately 12 km by air from the TransCanada Highway (Hwy 11) and the main railroad which connects to the port town of Nipigon, on Lake Superior. The property contains known lithium bearing granitic pegmatite dikes, of which two provided estimated historical resources of 2 million tons at 1.09% Li2O and 750,000 tons at 1.38% Li2O*. The Company recently acquired additional claims with additional lithium showings located on strike to the main historical resources."