HALIFAX, Jan. 5, 2016 /CNW/ - Stockport Exploration Inc. (TSX-V: SPT) ("Stockport") has entered into a cash and share option agreement with Ardiden Limited (ASX: ADV) of Australia to acquire 100% of Stockport's Seymour Lake concessions. The agreement calls for $75,000 to be paid to Stockport on signing of the agreement and $75,000 to be paid at the end of a due diligence period to be completed no later than 150 days following the agreement exercise date. Following the due diligence period, Stockport will be paid a further $350,000 in quarterly installments of $25,000 per quarter and will be issued $250,000 of Ardiden Limited shares (based on a 20 day VWAP). A further $250,000 of Ardiden shares will be issued to Stockport at the completion of the option agreement for a total compensation of $1,000,000. Ardiden reserves both the right to accelerate all payments to Stockport or withdraw from the option agreement. Stockport will retain 100% of the Seymour Lake rights should Ardiden fail to complete any requirements of the option agreement. Stockport also maintains the option to purchase a 1.5% NSR for payment of $1,000,000.
Seymour Lake is a lithium-beryllium-tantalum site located within the Caribou Lake Greenstone Belt, 230 kilometres north-northeast of Thunder Bay, Ontario, Canada. The property covers an area of approximately five by six kilometres. The claim group is located on an all-weather, year round, two-lane, main haulage road and the project has excellent proximity to existing rail sidings on the main CN rail line, and close proximity to a major power grid provided by Ontario Power Generation.
"The agreement with Ardiden is an excellent option for Stockport and our shareholders to advance Seymour Lake. We will realize short-term benefit while maintaining exposure to the up-side that we believe this property will realize," stated Jim Megann, CEO of Stockport Exploration. "We believe Seymour Lake has a strong geological foundation that we can build upon in this rising lithium market, and we look forward to completing a near-term exploration program to extend the property's opportunity." added James Thompson, Non-executive Director, Ardiden Limited.
Two exploration programs have been completed on the property by Stockport to date. The drilling tested two zones, where lithium, tantalum, and beryllium mineralization is found in shallow dipping granite pegmatites over a strike length in excess of one-kilometre. A National Instrument (NI) 43-101 has been completed by Stockport.
Significant Lithium mineralization was intersected in the first and second zones, including;
1.735% Li2O over 14.25m
2.386% Li2O over 9.20m
1.460% Li2O over 4.25m including 2.389% Li2O over 1.80m
2.212% Li20 over 5.70m
1.325% Li2O over 23.85m including 2.059% Li2O over 9.00m and 2.232% Li2O over 3.04m
1.475% Li2O over 17.72m including 1.937% Li2O over 12.97m
About Stockport Exploration Inc.:
Stockport is focused on the exploration of a district-scale land package along a prolific gold-hosting greenstone belt in southwest Kenya. The property package has potential to host various mineral deposit types, the most prominent being those of Lode-Gold and Copper-Zinc-Gold-Silver massive sulphide association. Stockport also holds the La Morena Copper-Silver property in Coahuila, Mexico, and the KM61 property, which hosts a National Instrument 43-101 compliant Molybdenum-Copper-Silver resource, also near Armstrong, Ontario.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, continuity of mineralization, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. For more information on the Company and the risk factors inherent in its business, investors should review the Company's Annual Information Form at www.sedar.com
SOURCE Stockport Exploration Inc.
For further information: STOCKPORT EXPLORATION, Jim Megann, President and CEO, (902) 482-1240, [email protected]; www.stockportexploration.com