Investment adjacent to Melkior s' Big Marsh properFirst Lithium to acquire 80% interest in Whitesides
2010-12-13 19:51 ET - News Release
Mr. Craig Naughty reports
FIRST LITHIUM OPTIONS LARGE WEST TIMMINS BLOCK
First Lithium Resources Inc. has entered into an option agreement with Mhakari Gold Corp., whereby the company can earn up to an 80-per-cent interest in Mhakari's Whitesides gold, nickel and copper property.
The property comprises 43 claims consisting of 565 claim units located in Carscallen, Turnbull, Massey and Whitesides townships in the emerging West Timmins mining camp. The Whitesides land package is adjacent to Melkior Resources' Big Marsh property to the south, Claim Post Resources' Kamistotia property to the northeast, approximately 10 kilometres northwest of Lakeshore Gold's West Timmins gold property, 35 km southeast of Xstrata's Montcalm nickel/copper mine and 10 to 14 km southwest from the historical Kam Kotia, Jamison, Jameland and Genex copper VMS mines.
The Whitesides project's host geology appears to be conducive for gold exploration in the east, nickel/copper in the west and potential VMS throughout the northern region of the property. The project also surrounds the historical De Santis gold mine (Turnbull township) to the north and west. There are at least four known gold occurrences along a strong north/south structure that runs through the property.
Nearly 70 per cent of the property is covered by overburden, which represents large areas of ground with relatively unknown geological and structural information. The company plans to conduct both airborne and ground geophysics on the property to help create a better understanding and interpretation of underlying structure and geology.
The company can earn up to an 80-per-cent interest by incurring exploration expenditures on the property totalling $850,000 over three years, with Mhakari agreeing to finance the company in two non-brokered private placements for a total of $500,000.
The company will proceed with the first non-brokered private placement, whereby the company will issue to Mhakari 1,851,852 units at 13.5 cents per unit for gross proceeds of $250,000. Each unit is composed of one common share and one share purchase warrant exercisable at 20 cents per share in the first year and at 30 cents per share in the second year. This private placement is subject to the approval of the TSX Venture Exchange. The securities issued will be subject to a hold period of four months plus one day from the closing date of the financing.
President, Craig Naughty, stated: "We are very pleased to acquire such a large land package in the West Timmins camp with gold exploration potential, nearby historic copper VMS mines and the current nickel gabbro Montcalm mine. We intend on beginning exploration on the project in the immediate future."