ST-SAUVEUR, QC, Feb. 14, 2019 /CNW Telbec/ - Genius Metals Inc. (CSE: GENI) ("Genius") is pleased to announce it has entered into an option agreement (the "Agreement") with Atlantic Vanadium Corporation ("AVC") to acquire 100% of the A-Lake Cu-Sn-Zn Property in New Brunswick (Canada).
Genius has completed a technical due diligence of the Property, this involved a review of geological information available and of the prior exploration work. A visit to the property was conducted by a qualified geologist who collected various copper mineralized samples from float materiel obtained by trenching. The samples collected were submitted for precious, base and trace element analysis.
Genius shall have the right until April 15, 2022 to acquire one hundred percent of AVC's interest in the Property (the "Option") by making cash payments totaling $90,000 to AVC in accordance with the following schedule:
- $20,000 upon execution of this Agreement
- $10,000 on or prior to May 31, 2019
- $25,000 on or prior to May 31, 2020
- $35,000 on or prior to May 31, 2021
In addition, Genius must incur Work Commitments totalling at least $700,000 as follows:
- A minimum of $100,000 before April 15, 2020
- A further $250,000 before April 15, 2021,
- A further $350,000 before April 15, 2022.
Any excess work incurred in any year may be carried forward and applied against the subsequent year's Work Commitments. The Corporation intends to raise additional equity financing in order to fulfill Work Commitments.
The Property will be subject to a 2.5% net smelter returns royalty (NSR) on production, of which 1.5% may be purchased at any time by the Corporation for $3,000,000, at any time on or prior to December 31, 2021.
A-Lake Cu-Sn-Zn Property
The A-Lake property is located in southern New Brunswick within the Charlotte County, NTS map 21G07. It consists of six claims (8866, 8840, 8864, 8896, 8897 and 8900) containing 78 units covering 19.5 km2. The mineralization is found within the Late Devonian Mount Douglas Granite units hosting endogranitic granophile element Sn-, Mo-, Zn-, Bi and U greisen/sheeted veins. The claims are located < 20 km from the W-Mo Mount Pleasant deposit associated with hydrothermally porphyritic granites intruding intracaldera Late Devonian volcanic and sedimentary rocks of the Piskahegan Group.
The property was prospected during the late summer and fall of 2018. A total of 32 mineralized monzogranite rock samples, mostly floats, were recovered from various parts of the property including from one 25 x1 m trench. Assay values reveal 22 samples with significant copper values (0.12-7.96 %), 10 with Pb concentrations > 2600 ppm (0.26-1.43 %) and 11 having Zn values ranging from 0.1 to > 1%. High values of Ag (23-100 ppm), Mo (1990-2880 ppm), W (>200 ppm) are accompanied by anomalous Li, Sn, Bi concentrations as a testimony of the association of the mineralization to the endograntic granophile element type. These encouraging results incite Genius Metals to instigate a new exploration campaign on the A-Lake property beginning next spring.
The technical contents of this release were approved by Michel Boily, PhD, geo; a Qualified Person (QP) as defined by National Instrument 43-101.
About Genius Metals Inc.
Genius Metals is a Canadian mineral exploration company focused on the acquisition, exploration and, if warranted, development of natural resource properties of merit in Canada.
The CSE has in no way passed upon the merits of the transactions and has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this news release.
Forward-Looking Statements and Disclaimer
Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, "will be", "expected" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements regarding the listing and trading of the Corporation's common shares on the CSE and the availability of a listing statement on the CSE's website and on SEDAR are based on the Company's estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Corporation to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Corporation will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
SOURCE Genius Metals Inc.
For further information: Contact Information: Guy Goulet, President and CEO, Tel.: 579 476-7000, Email: [email protected]