St. Anthony Gold Corp. has entered into a Letter of intent (LOI) with Foxfire Metals Pty Ltd (“Foxfire”), an Australian company, pursuant to which the company intends to acquire a 75% interest in eight Brazilian exploration licenses (“the Brazilian Portfolio”); six for lithium and two for rare earth elements (REE).
The Brazilian Portfolio
The Brazilian portfolio totals 12,315 hectares of highly prospective lithium and REE exploration licenses in the states of Minas Gerais and Bahia for lithium and Goiás for REEs.
The Minas Gerais Project
- 03 (Three) Exploration Authorizations in the vicinity of the SIGMA company’s deposits in Minas Gerais.
- 03 (Three) Exploration Authorizations located in the North of the State of Minas, in Padre Paraíso. The location is historically recognized for hosting lithium pegmatites associated with spodumene, lepidolite and ambliogonite.
The region is already a target for companies such as Companhia Brasileira de Lítio, Lithium Ionic (TSX-V:LTH), Australian Latin Resources Limited (ASX: LRS) and Oceana Lithium Limited (ASX: OCN).
Bahia Lithium Project
- Located in the northeast of the state of Bahia, with the potential to host lithium pegmatites.
Goiás REE Project
- 02 (two) licenses located in the state of Goiás with good exploration potential in REE.
Commenting on the transaction, Peter Wilson, CEO of St. Anthony Gold Corp said:
We are excited about the proposed acquisition of a 75% interest in these highly prospective lithium and rare earth element projects in three states in Brazil. Over the past several months, management has been on the lookout for a number of potential acquisition opportunities to diversify our project portfolio; we believe that given the location and commodity, these projects offer the Company the best opportunity to increase shareholder value.
Brazil has seen increasing interest from junior explorers and large mining companies, with the region being home to a number of lithium projects. The proposed licenses (Foxfire) provide an exciting opportunity for greenfield exploration in a known lithium province, particularly given the proximity of the Sigma areas (~38km).
Our team will continue due diligence work with the goal of starting an inaugural exploration program in November 2022. I am excited to be part of this new venture for St. Anthony and look forward to updating stakeholders and shareholders in a timely manner.
Commercial Terms of Transaction
The transaction allows St. Anthony Gold Corp. to acquire an immediate 75% interest in the Brazilian Portfolio upon signing of the LOI and in accordance therewith:
- Grant Foxfire a free 25% stake in the Brazilian Portfolio until the completion of an economic feasibility study.
- A payment of CAD $150,000 after 15 days of the execution of the LOI with a further CAD $100,000 within 6 months or the next capital raising (whichever is sooner).
- Issuance of 13,896,250 shares of St. Anthony Gold Corp to Foxfire under the agreed upon escrow terms.
- Retention of the 2% net royalties held by the original sellers, with a 50% buyback provision for CAD $1,000,000.
- Retention of project management rights by Foxfire for two years, with both parties to formulate an agreed expense budget for the period.
- Granting St. Anthony Gold Corp a “first right of refusal” to acquire Foxfire’s 25% interest in the Brazilian Portfolio.
Proposed Initial Exploration and Study Activities
An exploration program is being prepared to map and locate potential pegmatites for lithium as well as REEs to identify immediate drill targets.
The technical information contained in this release has been reviewed and approved by Dr Paul Woolrich (BSc Geology, MSc Geochemistry, PhD Metallurgy) who is a member of MAusIMM and a Qualified Person as defined in National Instrument 43-101.
ÍGNEABR has been directly advising FOXFIRE on the acquisition and management of its mining titles.
More information about the Company is available at www.SEDAR.com under the Company’s profile.
SOURCE: St. Anthony Gold Corp.
