VANCOUVER, British Columbia, June 24, 2021 (GLOBE NEWSWIRE) – AIS Resources Limited (TSX: AIS, OTCQB: AISSF) (the “Company” or “AIS) announces that it has entered into an option agreement (the“Agreement“) with Spey Resources Corp. (“Spey“) dated June 23, 2021 to grant Spey an option (the”Option“) to acquire a 100% interest in the Pocitos I and Pocitos II claims (the”Property“) located in Salta, Argentina.
AIS also announces a private placement without intermediary of a maximum of 10,000,000 units (“Units“) at a price of $ 0.08 per Unit for gross proceeds of $ 800,000 (the”Private placementThe proceeds will be used for general working capital and exploration of the Company’s gold projects in Australia.
Each unit consists of one common share and one transferable warrant. Each warrant will allow its holder to purchase one additional common share for a period of 24 months from the closing date of the offering at a price of $ 0.12 per common share. The Company may pay finder’s fees up to 8% in cash and 8% finder’s warrants on part of the placement.
Pocitos I and II
The project is located about 10 km from the municipality of Pocitos where there are gas, electricity and telephone internet services. Pocitos I is 800 Ha and Pocitos II 532 Ha, both accessible by road. AIS Resources spent over US $ 1.5 million to explore the project, including surface sampling, trenching, MET geophysics, and drilling of two 400m holes, which yielded exceptional results. . To date, Pocitos II has not yet been drilled and locations have been identified for holes 3 and 4.
Fig 1. Pocitos I and II located in Quinos Salar, Province of Salta in the lithium triangle in Argentina
AIS did not pursue the property in 2018 due to the high magnesium content of the brines and the fact that the fractional crystallization / ion exchange process could not process it. However, the Ekosolve ™ lithium extraction process will help alleviate the magnesium situation. Lithium values of up to 125 ppm were recorded and the hole flow rate exceeded 75,000 liters per minute and continued for more than 5 hours. Both boreholes exhibited exceptional brine flow rates. Spey’s plan is to sample the current drill holes and drill two more holes to estimate an NI 43-101 resource calculation and progress discussions to build a pilot production plant.
By virtue of an option contract, AIS has an option (the “Underlying option”) To acquire the Property from the current owners. Upon exercise of the underlying option by AIS, Spey will be able to exercise the option and acquire a 100% interest in the property from AIS by paying a total of $ 1,732,000 ( the “Purchase price“) Before June 23, 2022.
In order to keep the option in good standing under the agreement, Spey must immediately pay AIS a total of US $ 100,000 and issue 2,500,000 common shares of Spey. In addition, Spey is expected to complete a US $ 500,000 exploration program on the property within the next 12 months. Upon exercise of the option and Spey’s acquisition of a 100% interest in the property, AIS will retain a 7.5% royalty on revenues from the sale of lithium carbonate or other compounds. lithium from the property, net of export taxes.
CEO and Director Nader Vatanchi said: “Working with AIS and their team in Argentina has been very productive and we are fortunate that they have access to these projects to expand our lithium portfolio. Spey is still focused on advancing our exploration program at Incahuasi and aims to drill this summer now that we have the results of our TEM geophysics. Our new properties announced today, Pocitos I and II, are at an advanced stage and we look forward to drilling and completing an NI 43-101 report so we can begin planning for potential production.
Martyn Element, President of AIS, said: “We are delighted to see our strong working relationship between AIS Resources and Spey Resources grow to include the Pocitos 1 and 2 properties which are at an advanced stage of exploration. Importantly, the proprietary Ekosolve ™ lithium extraction process helps alleviate the magnesium extraction problem, which is key to bringing lithium value to Pocitos 1 and 2. ”
Closing of the private placement is subject to acceptance by the TSX Venture Exchange. All securities issued under the private placement will be subject to a four month hold period from the closing date under applicable Canadian securities laws.
Certain directors and officers may participate in the private placement. Such participation is considered to be a related party transaction within the meaning of Multilateral Instrument 61-101 – Protection of holders of minority securities in special transactions (“MI 61-101The related party transaction will be exempt from minority approval, information circular and formal assessment requirements in accordance with the exemptions contained in sections 5.5 (a) and 5.7 (1) (a) of NI 61-101 , because neither the gross value market of the securities to be issued within the framework of the Private Placement nor the consideration to be paid by the insiders will exceed 25% of the market capitalization of the Company A material change report will be filed less than 21 days before the closing date of the transactions contemplated by this press release The Company believes that this shorter period is reasonable and necessary in the circumstances.
The Securities of the Private Placement have not been and will not be registered under the US Securities Act of 1933, as amended (the “1933 Act”), or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered in the United States or to, or on behalf of or for the benefit of, United States persons (as defined in Regulation S under the 1933 Act) without registration or exemption applicable registration requirements. This press release does not constitute an offer to sell or a solicitation to buy any such securities in the United States.
The technical information contained in this press release has been reviewed and approved by Phillip Thomas, BSc Geol FAusIMM MAIG MAIMVA (CMV) who is a Qualified Person as defined by National Instrument 43-101.
About AIS Resources Limited
AIS Resources Limited is a TSX-listed investment issuer focused on precious and base metal exploration. AIS’s value-added strategy is to acquire potential exploration projects and increase their value by better defining the mineral resource with a view to attracting joint venture partners and increasing the value of our portfolio. The Company is managed by a team of experienced geologists and investment bankers, with a history of successful achievements in the capital markets. AIS owns 100% of the 28 km² Fosterville-Toolleen gold project located 12 km from the Kirkland Lake Fosterville gold mine (subject to the completion of certain exploration expenditures), a 60% interest in the project 58 km² Yalgogrin gold project in New South Wales (with the right to acquire 100%) and 100% interest in the 167 km² Kingston gold project in Victoria, Australia, near Stawell.
AIS Limited Resources
For more information, please contact:
Phillip Thomas, President and CEO
Phone. : + 1-323-515-5164
Email: [email protected]
Martyn Element, Executive Chairman
Phone. : + 1-604-220-6266
Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ADVISORY: This press release contains forward-looking statements. In particular, this press release contains statements regarding the intended use of the proceeds from the Private Placement. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, one should not place undue reliance on them as the Company cannot guarantee that they will prove to be correct. Because forward-looking statements relate to future events and conditions, by their very nature they involve inherent risks and uncertainties. the the intended use of the proceeds of the private placement by the Company could change if the board of the directors of the Company determine that it would be in the best interests of the Company to use the proceeds for other purposes. The forward-looking statements contained in this press release are made as of the date hereof and the Company assumes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.