New Exploration Area Strategically Located Near Its Augustus Project
First Energy Metals Ltd (CSE: FE) has entered into an agreement to acquire a 100% interest into additional mining claims located near its Augustus Lithium Property in Landrienne & Lacorne-Townships, Quebec, Canada.
The newly acquired properties consist of 242 mining claims covering a total area of 12,769.13 hectares located approximately 40 km northwest of the town of Val d’Or.
The newly acquired property claims are spread in several claim blocks and some of the claims are located adjacent to the Augustus Lithium Property claims which were optioned in 2021.
There is one historical lithium showing, namely “Lac La Motte NE”, in a claim block of the new property where exploration work in 2010 carried out by Candorado Operating Co. indicated anomalous values of lithium (Li) in the range of 342 ppm (0.073% lithium oxide) to 7900 ppm (1.7% lithium oxide) in grab surface samples.
First Energy acquired the mining claims comprising the Property from a group of arm’s length parties pursuant to a property purchase agreement. Under the agreement, First Energy will acquire its 100% interest in the Property by making cash payments of C$250,000 and issuing an aggregate of 4,100,000 common shares, at a deemed issued price of C$0.37. The sellers will retain a 3.0 % NSR from any future production. First Energy has the right to reduce the 3.0% NSR to a 2.0% NSR by paying C$1 million.
