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Rock Tech Lithium Inc V.RCK

Alternate Symbol(s):  RCKTF | V.RCK.WT

Rock Tech Lithium Inc. is a Canada-based cleantech company. The Company is focused on developing and optimizing battery-grade lithium hydroxide monohydrate through the construction and operation of multiple lithium hydroxide manufacturing plants in Europe and North America. The Company operates through three segments: Corporate, Converter Project, and Georgia Lake Project. The Company holds a 100% interest in the Georgia Lake lithium project through its subsidiary James Bay Midarctic Development Inc. The Company’s Georgia Lake Project conducts exploration, development and basic engineering activities. The project is located in an area underlain by metasediments and metavolcanic of the Archean age. The Company holds approximately 277 exploration claims at the Georgia Lake Project. The Company is also engaged in a lithium hydroxide merchant Converter and refinery facility in Guben, Germany (the Guben Converter).


TSXV:RCK - Post by User

Bullboard Posts
Post by Ogre2on Dec 07, 2009 5:35pm
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Post# 16562362

Acquisition of Georgia Lake Properties

Acquisition of Georgia Lake Properties

NEWSRELEASE – FOR IMMEDIATE DISTRIBUTION


Re:Rock Tech ClosesAcquisition of Project and Announces Brokered FinancingThrough MGI Securities


Vancouver, BritishColumbia, Canada, December 7, 2009 Rock Tech Resources Inc. (TSX-Venture:RCK; Frankfurt: RJIA) (the “Company” or “Rock Tech”) is pleased to announce thatit has closed and received regulatory approval on the acquisition of all of theissued and outstanding shares of James Bay Midarctic Developments Inc. andmineral leases from Lithium One Inc. in respect to the Georgia Lake LithiumProject in exchange for an aggregate of 6,300,000 common shares of theCompany.All securities issued under thetransaction will be subject to a four month hold period until March 21,2010.

The lithium project covers 25 of approximately 50 known lithiumbearing occurrences within the area.A review of historical exploration workindicate that six of the eight areas on the property have cumulative historicalresource estimated to be 9 million tons with aweighted average of 1.14% Li2O (lithiumoxide)(source: E.G. Pye, 1965, Geological Report 31, Ontario Department ofMines).Over 200 drill holes with approximately33,000 metres of diamond drilling were completed on the property by previousoperators in the late 1950s.

During 1956 to 1957underground development was carried out on the Nama Creek claim block of theproject.A vertical four-compartmentshaft was sunk to a depth of 153.3 metres (503 feet) which included stations atdepths of 45.7 metres (150 feet), 91.4 metres (300 feet) and 137.2 metres (450feet).Since 1957, no effectiveexploration or development work has been completed on the project due to aretraction in the lithium market during that period.

Paul Chow,Company President and CEO, commented, “We are delighted to have completed theacquisition of the Georgia Lake lithium properties and to have developed a goodrelationship with the Vendors, James BayMidarctic Development Inc. and Lithium One Inc.Our immediate objective is to bring historical resource estimates toNI43-101 standards and initiate a pre-feasibility study for the project.To that end, a preliminary exploratory drillprogram has already commenced and will serve as the basis for developing adetailed exploration plan to confirm historical results.Furthermore, we are pleased to have partneredwith MGI Securities, who will act as our agent for the equity financing werequire to fulfill our mandate to develop our lithiumassets.”

The properties is comprised of 23 mining claimscovering 3,616 hectares in 226 units, and 61 mining leases covering 1,049hectares in the Thunder Bay Mining Division in northwestern .These patented and unpatented claims arelocated in eight different claim blocks on the property.

Theproperties are located about 145 kilometers northeast of the City of .The principal means of access to the area arethe to Longlac branch line of Canadian National Railways, and Provincial HighwayNumber 11.Gravel roads and tertiarybush roads provide access to all of the claim groups.

Geologically the area isunderlain by metasediments and metavolcanics of Archean age, trending east-westto east-northeast and steeply dipping along the south flank of a regionalsyncline.These metasediments wereinvaded by large masses of Algoman granitic rocks and by numerous sills anddykes of genetically related porphyry, pegmatites, and aplite.These Archean metasediments are overlain by athin cover of Sibley sediments which were subsequently intruded by diabase dykesand sills of Proterozoic age.

The pegmatites contain lithium bearingmineral spodumene at many places in the area.Other than spodumene, beryl, columbite, molybdenite, amblygonite,apatite, and bityite were also identified during historical work which enhancesthe lithium and rare earth elements potential of the area.A summary of the historical exploration workand historical resource estimation done by previous operators at eight claimblocks on the Georgia Lake properties is presented as follows and proceedingtable (Table 1):

1.The Aumacho River Propertyconsists of unpatented mining claims of 46 claim units, covering 736 hectares(1,840 acres) where at least three lithium bearing pegmatites are located.A mill test carried out by the Department ofMines and Technical Surveys () indicated that heavy mediaseparation would yield 6.27% lithium with a recovery of about 90%, with a secondtest indicating that floatation would yield concentrate containing 5.93% lithiumalso at 90% recovery.

2.The Jean Lake Propertyconsists of a roughly square block of 25 mining leases which includes 3unpatented mining claims in 36 units for a total area of 961 hectares.The mining leases contain five knownspodumene-bearing zones and the mining claims cover at least three zones oflithium occurrences.All eight pegmatitezones have been historically explored by stripping or rock trenching with fiveof the eight zones having been tested by diamond drilling.

3.The Conway Propertyconsists of five contiguous, unpatented mining claims comprised of 50 claimunits covering 800 hectares (2,000 acres).Six known lithium bearing pegmatite occurrences are located on thisproperty.Historical exploration work onall these occurrences indicates a resource estimate of 1.83 million tons ofpegmatite at an average grade of 0.96% Li2O.

4.The Foster Lew Propertyconsists of 4 claims in 32 units covering 512 hectares, and four mining leasescovering 75 hectares.The Foster lithiumbearing pegmatite dyke is exposed for a distance of about 75 metres with a widthof 9 metres and has been tested with five diamond drill holes over a length of122 metres.The Lew pegmatite dyke islocated about 450 metres southwest of the Foster dyke and has been traced bystripping for a distance of about 30 metres and having a width of 2 to 3 metres.

5.The McVittie Propertyconsists of six contiguous mining leases covering 88 hectares (220 acres).Between 1955 and 1956, Noranda Mines Ltd.completed an extensive exploration program consisting of prospecting, trenching,geological mapping and diamond drilling.A historical resource of 261,000 tons pegmatite at 1.03% Li2O,based on 12 drill holes totaling 1,093 metres drilling has been estimated.

6.The Newkirk-Vegan Propertyconsists of eight mining leases, covering 121 hectares (302 acres).Between 1955 and 1966, various operatorscarried out some 4,575 metres of diamond drilling which resulted in historicalestimated pegmatite resource of 750,000 tons, with an average grade of 1.38%Li2O.This resource islocated in the southeast section of a northwest-southeast trending zone, along alength of about 410 metres.

7.The MNW Property consists of 2 leased claims covering 44 hectares andis surrounded by 6 unpatented claims containing 52 claim units covering 832hectares.Lithium bearing pegmatite dykeoccurs in massive, medium-grained, pink granite and is localized along afracture with up to 13.5 metres in thickness and has been traced in outcrops andtrenches, intermittently, for a distance of about 425 metres.The main dyke was sampled by a past operatorand was found to average better than 1.5% Li2O.A subsequent drill program of 14 holes atintervals of 15 metres to 60 metres, totaling 761 metres was carried out.

8.The Nama Creek Propertyconsists of 36 mining leases covering 336 hectares with several spodumene dykescontained in 6 pegmatite zones.During1955-1957, the property was subjected to intense exploration work comprising ofover 10,000 meter diamond drilling which resulted in a historical resourceestimation of 4.29 million tons to a depth of about 305 metres at an averagegrade of 1.06% Li2O.

Table 1: HistoricalResource Estimation of Lithium Project

Name of Property

Historical Estimated Resource*

Lithium Grade

Historical Exploration

Tons

% Li2O

Property

759,475

1.65

Diamond drilling from Oct 1955 to April 1956, and in 1957

96,000

1.5

Property

1,830,000

0.96

82 drill holes, totaling 9,227 metres drilling

Property

1,689,000

1.3

50 drill holes totaling 7,425 metres drilling

McVittie Property

261,000

1.03

12 drill holes totaling 1,093 metres drilling

Nama Creek Mines

2,784,000

1.11

57 drill holes totaling 10,817 metres drilling

1,508,332

0.96

Newkirk-Vegan Property

75,000

1.38

4,575 metres diamond drilling to explore the dyke for about 600 metres strike length

Total Estimated Historical Resource*

9,002,807

Average Grade*

1.14%

*Thehistorical resource estimate cited in this press release are taken from OntarioDepartment of Mines Geological Report No. 31 titled, “Geology and LithiumDeposits of Georgia Lake Area”,by E.G.Pye, 1965. The author of the report took resource estimates from the assessmentreports filed by previous operators, and other available sources. The companybelieves that the estimate is relevant to an appraisal of the merits of theproperty because it was based on drilling, trenching and other exploration workin each claim block on the property, and because there is no evidence of anysubsequent resource estimation work on the property.No additional recent data on resourceestimates are available in the public domain.No additional work has been completed by a qualified person to classifythe historical resource estimate as a current resource or reserve.The company is not treating the historicalresource as a current mineral resource or reserve. The historical resource estimate should notbe relied on and does comply with NI43-101standards.

Further to Paul Chow’s comments regarding the Company’s plan to raisecapital, Rock Tech also announces that it has engaged MGI Securities Inc. (the“Agent”) to act as agent for a brokered private placement, on a best effortsbasis, of up to $1.0-million (Canadian) in units of the Company (“Units”) or upto 5 million Units at subscription price of
.20 per Unit (the“Offering”).Each Unit consists of one(1) common share of the Company and one (1) common share purchase warrant of theCompany (each, a “Warrant”).EachWarrant will entitle the holder thereof to purchase one additional common shareof the Company (each, a "WarrantShare") at an exercise price of
.40 per Warrant Share to the extentsuch Warrant is exercised on or before the date that is 24 months from the dateof closing. In the event that after fourmonths and one day after the closing, the closing price of the Company’s commonshares on the TSX Venture Exchange (or such other stock exchange on which theCompany’s shares are listed and where a majority of the trading volume occurs),for a period of ten (10) consecutive trading days equals or exceeds
.60 pershare, the Company will, within five (5) days after such an event, providenotice to the warrant holders of early expiry of the Warrants held by eachwarrant holder and thereafter, such Warrants will expire at 3:30 p.m. (EasternTime) on the date which is twenty-one (21) days after the date of the notice tothe warrant holders.

Inconsideration of MGI Securities Inc. acting as the agent for the Offering, theywill be compensated by way of 8% in cash commission based on the aggregatenumber of Units sold pursuant to the Offering. In addition, the Company willissue to the Agent, non-transferable compensation options ("Agent's Compensation Options") equalto 10% of the aggregate number of Units sold pursuant to the Offering.Each such Agent's Compensation Optionentitles the Agent to purchase one Unit of the Company at
.20 per Unit at anytime prior to the date that is 24 months from the applicable date ofissuance.

Thenet proceeds of the private placement will be used to finance theadministration, exploration and development activities on the Company’s and Kapiwak lithiumprojects and for working capital.

Completion of the Offering is subject to the receipt of all requisiteregulatory approvals, including the approval of the TSX Venture Exchange.

Technical information in this news release has been reviewed byAfzaal Pirzada, P.Geo., Vice President, Exploration of the Company and aQualified Person as defined in NI 43-101.

AboutMGI:

MGI Securities Inc. is anintegrated Canadian investment dealer offering professional wealth managementsolutions for individual investors, a comprehensive range of specializedservices for institutional investors, and corporate finance advisory servicesfor issuers, including mergers and acquisitions, equity underwritings, corporaterestructuring, structured financings, market research, and business valuationservices. MGI is based in , withadditional offices in , , and. MGI is a member of IIROC and is asubsidiary of Jovian Capital Corporation (TSX: JOV). MGI has approximately $1.1billion in client assets under administration.

Forfurther information: John A. McMahon, Investment Banker, MGI Securities, (416)777-5178, jmcmahon@mgisecurities.com.

ONBEHALF OF THE BOARD OF DIRECTORS

Director, President and CEO

Formore information, please contact:

, President and CEO

RockTech Resources Inc.

,

, B.C., V6C1H2

Telephone:(604)688-1140

Facsimile:(604)688-1173

Email: info@rocktechresources.com

Disclaimerand Cautionary Statement Regarding Forward-LookingInformation

Neither TSXVenture Exchange nor its Regulation Services Provider (as that term is definedin the policies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this press release.This news release shall not constitute an offer to sell or thesolicitation of an offer to buy securities in any jurisdiction.

Allstatements, trend analysis and other information contained in this press releaserelative to markets about anticipated future events or results constituteforward-looking statements.Forward-looking statements are often, but not always, identified by theuse of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”,“expect” and “intend” and statements that an event or result “may”, “will”,“should”, “could” or “might” occur or be achieved and other similarexpressions.Forward-looking statementsare subject to business and economic risks and uncertainties and other factorsthat could cause actual results of operations to differ materially from thosecontained in the forward-looking statements.Forward-looking statements are based on estimates and opinions ofmanagement at the date the statements are made.The Company does not undertake any obligation to update forward-lookingstatements even if circumstances or management’s estimates or opinions shouldchange.Investors should not place unduereliance on forward-looking statements.

Rock TechResources Inc. seeks safe harbor.

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