VANCOUVER, March 17, 2020 /CNW/ - First Energy Metals Ltd. (CSE: FE) ("First Energy" or the "Company) is pleased to announce that it has entered into an option agreement with Geomap Exploration Inc. ("the Optionor"), a private Corporation registered in British Columbia, Canada, to acquire two gold exploration properties located in the Province of British Columbia, Canada. Pursuant to a property purchase option agreement (the "Option Agreement") between the Optionor and the Company, dated March 17, 2020, First Energy holds an option to acquire a 100% interest in the Kokanee Creek and Independence Gold Properties ("the Properties") located in southeastern British Columbia, Canada by paying cash payments, common shares issuances and exploration expenditures as follows:
- Cash payment of $ 10,000 CAD within 10 days of CSE and any other regulatory approval necessary. Additional $ 40,000 CAD prior to the one-year anniversary of the agreement.
- Share issuance of 2,500,000 shares within 10 days of CSE and any other regulatory approval necessary.
- Complete $ 100,000 CAD in exploration expenditures.
- Cash payment of $ 75,000 CAD prior to the one-year anniversary of the agreement.
- Share issuance of 2,500,000 shares on the one- year anniversary of the agreement.
- Complete $ 250,0000 CAD in exploration expenditures
The Kokanee Creek Gold Property consists of three mineral claims covering approximately 1,590.29 hectares area in Nelson Mining Division in British Columbia, Canada. It is located 18 km to the east of Nelson on NTS map 082F055. The Property is part of a very active mining area with several historical and current gold, silver and base metals deposits located in the region. Nelson is a historical mining town dating back to the discovery of Toad Mountain Silver deposit in 1886. The Blue Bell Mine, located near the town of Riondel approximately 20 km NE of the Kokanee Creek Claims, is a manteau-type base metal deposit hosted by the Badshot limestones of the Lardeau Group. Closer to the Kokanee Claims are historical past producers the Molly Gibson and the Alpine.
The Independence Gold Property consists of two mineral claims (Independence 1 and 2) totalling 1,099.43 hectares land in southeastern British Columbia, Canada. It is road accessible, located 20 to 29 kilometres to the southeast of Nakusp, British Columbia, Canada, on the eastern slope of Silver Mountain on NTS map 082K. The most common type of deposit in the Nakusp area is the lead-zinc-silver-gold bearing quartz veins in graphitic shear zones.
Cautionary Statement: Investors are cautioned that the above information has been taken from the BC Government's database at following websites: https://www.mtonline.gov.bc.ca/mtov/home.do. The Company has not verified the information and the information is not necessarily indicative of the mineralization on these properties. The Company is in the process of compiling geological and historical exploration work on each property and will provide an update as soon as the information is available.
Technical data pertaining to this new release was reviewed and approved by Afzaal Pirzada, P.Geo., who is the Property Vendor and acting as First Energy's qualified person under National Instrument 43-101.
This above noted agreement is with a non-related party and there are no directors, officers or senior management in common.
In addition, the Company is pleased to announce that it intends to complete a non-brokered private placement for aggregate gross proceeds of up to $500,000 (the "Offering "). The Offering will consist of the sale of $100,000 flow-through shares ("FT Shares ") at $0.05 per FT Share and the sale of $ 400,000 hard dollar units ("HD Units ") at $0.05 per HD Unit. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one common share at a price of $0.20 for a period of one year from the issue date.
First Energy intends to use the net proceeds from the Offering to fund its initial exploration program for the Kokanee Creek and Independence Gold Property along with use for general working capital purposes. Further to this, First Energy will not be proceeding with the Letter of Intent for the Thunder Mountain property announced on January 22nd, 2020.
Closing of the Transaction and private placement is subject to obtaining all required approvals, including from the CSE and any other regulatory approval. The securities will be subject to a four-month hold period plus one day under securities laws.
About First Energy Metals Limited.
First Energy Metals Limited is a junior resource company engaged in the exploration and development of energy metals such as lithium, cobalt, and gold within its property portfolio in North America. The Company's goal is to acquire prospective technology metals properties and develop them. The Company currently holds an option to acquire 100% interest in Phyllis Cobalt property in Ontario. First Energy Metals Limited (formerly "Agave Silver ") was incorporated on October 12, 1966 in the Province of British Columbia. The Company's common shares trade on the Canadian Securities Exchange (CSE) under the symbol FE and are also listed on the US OTC Markets (Pink) as ASKDF and on the Frankfurt Stock Exchange as A2JC89.
ON BEHALF OF THE BOARD OF
FIRST ENERGY METALS LTD.
Gurminder Sangha P
resident & Chief Executive Officer
Neither the Canadian Securities Exchange (CSE) nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this news release and has neither approved nor disapproved the contents of this news release.
Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes information about the Company's proposed Transaction with Geomap Exploration; and other forward-looking information includes but is not limited to information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.
Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the Company's proposed Transaction with Geomap Exploration may not be completed on the terms and timing currently contemplated, or at all; and other risks as more fully set out in the Company's continuous disclosure filings at www.sedar.com.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's ability to obtain required approvals and close the proposed Transaction with Geomap Exploration. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
SOURCE First Energy Metals Limited
For further information: please contact the Company at: (604) 375-6005 or [email protected]