MONTREAL, QC / ACCESSWIRE / May 12, 2016 / VIRTUS MINERALS CORPORATION ("Virtus" or the "Company"), a private mineral exploration company, is pleased to announce that as part of a strategic review of assets and Company focus, it has acquired 100% ownership of the Nemiscau Lithium Project, which lies in close proximity and along strike from Nemaska Lithium Inc.'s (TSX:V NMX) Whabouchi Project.
The Nemiscau Project, located in the James Bay region of northern Québec, comprises a single block of fifty Claims covering 2,666 hectares ("ha"). Work in the area by previous operators indicates that the property is highly prospective for lithium, as well as rare earth elements ("REEs").
Figure 1: Project location A safe geopolitical environment, Québec ranked sixth in the Fraser Institute's 2014 rankings of attractive mining jurisdictions.
To view an enhanced version of Figure 1, Please visit:
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The property is on strike and approximately 5 km northeast of Nemaska Lithium's Whabouchi Project—the world's second largest and richest deposit of spodumene, a source of lithium. Whabouchi holds 27.3 MT of Proven and Probable Reserves, with an average life-of-mine grade of 1.46% Li2O and with an estimated mine life span of 26 years (NMX Press Release, April 4, 2016).
Figure 2: Licence areas An exceptional geological setting with attractive neighbours and geological potential--the 27.3 million tonne (P+P), 1.46% Li2O Whabouchi Mine lies less than 5 km from Nemiscau.
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Daniel Barrette, Virtus's Chief Executive Officer, stated: "I am very pleased and excited by the new path Virtus is taking, with a new commodity and geographic focus. The acquisition of 100% of the Nemiscau Project marks a turning point for Virtus. While historically the Company has made small steps in exploring in tough locations, to be able to announce our move into lithium and to safe jurisdictions should be a welcome relief to our current and future shareholders. I look forward to being able to advance Nemiscau over the coming program."
Work carried out by previous operators at Nemiscau, (known previously the Abigail Property), is minimal; however, significantly it includes airborne magnetics and electromagnetic ("EM") surveys as well as some surface sampling. No drilling has yet been completed on the property.
Virtus plans a two-phase exploration program over the next two field seasons.
Phase I will commence with a compilation study, with a review of all the available data and documents relating to the property (reports, maps, studies), including review of historic geophysical surveys. In the field, detailed geological map of all rock outcrops will be completed with the aim of generating initial targets for follow up work.
Initial follow up will include magnetometer and radiometric (spectrometric) surveys over the entire claim block. Stripping and trenching/channel sampling will be carried out where geological formations are favourable to host lithium.
If warranted by the results of Phase I, it is expected that Phase II will include more detailed mapping and channel sampling and/or trenching. During this Phase, diamond drilling will be carried out on specific targets to test any reported mineralization at depth.
Meanwhile, Virtus plans to continue assessing further strategic assets, in order to add to the portfolio and pipeline of projects.
Company Focus
In 1Q 2016, Virtus management made the decision to redefine the Company's overall strategy to reflect the realities of the exploration climate at this time. Given the extended market downturn seen globally, it was clear that the Company's sole focus on grassroots African base metals projects was not realistic for a company of Virtus's size, such projects not being readily financeable.
After extensive review of Virtus's strategy, what was clear from both an exploration and financing point of view was that:
- Lithium powers modern technology: it is used in rechargeable lithium-ion batteries for electric vehicles, grid-scale energy storage, phones, laptops, cameras, gaming consoles and hundreds of other electronic devices. Lithium-ion batteries are used increasingly for bikes, power tools, forklifts, cranes and other industrial equipment.
- Due to lithium's key role in batteries for grid-scale power storage, electric vehicles and consumer electronics, and the ever expanding need of batteries to power our modern lives, lithium seems untouched by economic downturns.
- Demand for lithium is poised to continue on its upward trajectory.
- New supply of low-cost lithium is constrained: political, capital, technical and environmental issues are forcing new projects either into failure or causing delays.
Virtus's response:
- Add strength and experience to our technical and management team.
- Be opportunistic and evaluate projects that are complimentary to our strategy, where acquisition would add strength to its portfolio of mineral assets.
- Increase our portfolio of projects in geopolitically stable regions of the world.
- Search actively for joint-venture partners, when required.
- Explore and develop Nemiscau Lithium aggressively to bring near-term results through execution of a two-phase program of delineating and assessing targets.
- Ensure a stream of news flow to keep investors informed.
- Plan exit strategies to ensure maximum return on shareholders' investments.
Mr. Barrette added: "There is no doubting the importance of lithium in our technology-driven future. We are therefore particularly excited to have acquired the Nemiscau Project, located in a highly prospective region, and in a Province ranked so favourably for mining investment."
Terms of the Agreement
Under the terms of the acquisition agreement to purchase Nemiscau ("Agreement"), Virtus will make staged payments totalling $178,000 as follows: (i) $3,000 within 60 days of signing the Agreement; (ii) $50,000 upon successful close of financing ("Financing"); (iii) $35,000 twelve (12) months after Financing; (iv) $40,000 twenty four (24) months after Financing; and (v) a final $50,000 thirty-six (36) months after Financing ("Final Payment"). Additionally, Virtus will issue 1,000,000 Common Shares of its capital stock twelve (12) months after Financing, subject to appropriate Regulatory approvals as required at the time.
Virtus may terminate the Agreement at any time prior to the Final Payment, and at its sole discretion, by providing 30 days notice in writing. In the event that Virtus terminates the Agreement, the Company avoids any future payments, and transfers the Claims back to the vendor in good standing.
This transaction is not subject to Regulatory approval.
Qualified Person
Virtus has not carried out fieldwork on the Nemiscau Project to date; it has verified locations and general descriptions of Claims and samples referred to in this news release but has not conducted independent sampling to verify presence of lithium mineralization or grades. Geology referenced in this news release is cited from sources believed to be reliable. Virtus's disclosure of a technical or scientific nature in this news release has been reviewed and approved by Mr Stanley Robinson, P.Geo., who serves as a Qualified Person, as defined under National Instrument 43-101.
About Virtus
Virtus is a privately-held Canadian mineral exploration company that was formed in December 2014 under the laws of the Province of Québec.
Virtus holds 100% interest in the Nemiscau Project, subject to payment of $178,000 and issuance of 1 million common shares over three years. Nemiscau is highly prospective for lithium and rare earth elements (REEs), as well as VMS mineralization. The project area comprises 50 claims covering 2,666 ha in the James Bay region of northern Québec. The licence is in close proximity to and on strike from the world-class Whabouchi Lithium Mine, currently being developed by Nemaska Lithium Inc. (NMX.V).
Virtus's long-term growth strategy is to explore and develop high-quality projects that have the potential to produce and deliver strategic minerals to the global high-tech industrial sector.
More information on Virtus is available at www.virtusminerals.com.
VIRTUS CONTACT INFORMATION
Daniel Barette
Chief Executive Officer
+1.514.448.2172
daniel@virtusminerals.com
Toby Mayo
President and Chief Operating Officer
+1.778.668.0107
toby@virtusminerals.com
FORWARD-LOOKING STATEMENTS
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in the company's periodic filings. When used in this document, the words such as "will, could, plan, estimate, expect, intend, may, potential, should," and similar expressions, are forward-looking statements. Information provided in this document is necessarily summarized and may not contain all available material information.
Forward-looking information and statements in this news release include, but are not limited to, statements regarding the acquisition of the Nemiscau Project and the issuance of securities, opportunities for discovery in the James Bay region of northern Québec, the future growth of Virtus, the identification, exploration, and development of high-quality mineral projects and the delivery of minerals to the global industrial sector.
All such forward-looking information and statements are based on certain assumptions and analyses made by members of Virtus's management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors that they believe are appropriate in the circumstances. These statements, however, are subject to a variety of risks, uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements and Virtus undertakes no obligation to update such statements, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information or statements.
SOURCE: Virtus Minerals Corporation
ReleaseID: 439942
