VAL-D'OR, QC , Feb. 16, 2021 /CNW/ - Vision Lithium Inc. (TSXV: VLI) (OTC PINK: ABEPF) (the " Company " or " Vision Lithium ") is pleased to announce that it has entered into a binding letter of intent with Messrs. James C. Campbell and Peter C. Dunlop (the " Vendors "), on an arm's length basis, to acquire all of the right, title, and interest of the Vendors in and to the non-surveyed, unpatented mining claim known as the Godslith claim (the " Transaction "). In connection with the Transaction, Vision Lithium has applied for a mineral exploration licence, which together with the Godslith claim, covers a total area of approximately 5,560 hectares (the " Property "). The Property is located less than 1 km Northwest of Gods River, Manitoba , within and surrounding the traditional territory of the Manto Sipi Cree Nation (the " MSCN "), in the God's Lake area of the province of Manitoba .
Victor Cantore , Executive Chairman of Vision Lithium commented, "The Godslith project is an excellent addition to our lithium portfolio of properties and we are eager to validate the historical exploration work that has been done on the property. When evaluating a lithium exploration asset, we consider any previous exploration work, especially drilling, that demonstrates high grade lithium in the ground. We also select assets that have upside exploration potential for future growth and expansion and that are located in safe, mining friendly jurisdictions. In our estimation, this project meets or exceeds our selection criteria, having tremendous exploration upside and being located in Manitoba, Canada . The deposit has only been tested to a depth of 243 metres where drilling intersected 15.2 metres grading 1.49% Li 2 O. Furthermore, the mineralized zone is recognized over at least 2.3 kilometres along strike, making this an exceptional target for expansion. This is also a particularly good time to accumulate lithium assets in excellent jurisdictions at favourable valuations and we will be opportunistic and continue to consider projects that are accretive to Vision Lithium's project portfolio."
Hear more from Victor Cantore on the merits of the Transaction in an interview with media outlet Core Finance CEO Interview at https://youtu.be/22Z3T0xknJM .
Historical Estimates for the Godslith Property
In connection with the Transaction, the Company has reviewed an independent technical report on the Property (the " Technical Report "), dated August 26, 2009 , that was prepared for First Lithium Resources Inc. by qualified person Mark Fedikow Ph.D., P.Eng., P.Geo., C.P.G. in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (" NI 43-101 ").
The Godslith pegmatite dyke is classified as a rare metal spodumene pegmatite. The lithium-bearing mineralization has an approximate 2.3 km drill-indicated strike-length and dips 70 degrees North. The Technical Report details the geological setting of the Property's lithium-bearing pegmatite and reviews the historical exploration results. Between 1958-1961, INCO completed 25 wide-spaced drill holes for a total of 9,421 ft ( 2,871.5 m ). In 1986, W.C. Hood Geological Consulting completed an internal report wherein they reported the following resource estimate:
| Zone | Resource
Classification | Cut-off Grade
% Li 2 O | Short
Tons* | Grade %
Li 2 O | Weighted Average
True Width (Metres) |
| Upper Zone | Historic Indicated | 0.70 | 4,800,000 | 1.27 | 11.04 |
| Lower Zone | Historic Probable | 0.70 | 4,600,000 | 1.14 | |
| *1 short ton = 0.9072 metric tonnes. |
While the Company considers these historical estimates to be relevant to investors, as they may indicate the presence of mineralization, a qualified person has not done sufficient work for Vision Lithium to classify the historical estimates as current "mineral resources" or "mineral reserves" (as defined in NI 43-101). The foregoing historical estimates were calculated prior to the implementation of NI 43-101 and the Company is not treating these historical estimates as current "mineral resources" or "mineral reserves".
The Technical Report also provides recommendations for future exploration work and includes an initial program of prospecting and geological mapping followed by soil geochemical surveys designed to assess the area for additional pegmatite dykes and base and precious metals. A diamond drill program has also been recommended for the purpose of extending the lithium-bearing pegmatite on the Property to depths below those indicated by the historic Inco drilling.
The Transaction
The Transaction will be carried out by way of a definitive purchase agreement to be entered into between the parties (the " Purchase Agreement "). A separate exploration agreement is to be negotiated and entered into between Vision Lithium and the MSCN to establish a long-term, mutually beneficial, cooperative and respectful relationship based on trust and certainty concerning the exploration program to be carried out by Vision Lithium on the Property.
Pursuant to the terms of the Transaction, Vision Lithium will issue to the Vendors 4,000,000 common shares of the Company (the " Shares ") and will grant the Vendors a 3% net smelter returns royalty (the " Royalty "). The Shares will be subject to escrow and released in four equal tranches of 1,000,000 Shares over an 18-month period. One-third of the Royalty (1%) may be repurchased by the Company for $1,000,000 and an additional one-third (1%) may be repurchased by the Company for an additional $2,000,000 .
The Transaction remains subject to certain conditions, including:
- the signing of the definitive Purchase Agreement;
- the approval of the Company's board of directors;
- receipt of all necessary consents and approvals, including the approval of the TSX Venture Exchange (the " TSXV "); and
- standard closing conditions for transactions of this nature.
Completion of the Transaction is anticipated to occur in the coming days.
The scientific and technical information in this release has been reviewed and approved by Yves Rougerie , Geologist, President and CEO of the Company. Mr. Rougerie is a "qualified person" as defined in NI 43-101.