LOMIKO INCREASES LA LOUTRE INTEREST TO 80% AND OPTIONS 80%
OF LAC DES ILES WEST LOCATED ADJACENT TO IMERYS CARBON &
GRAPHITE MINE
February 9, 2015 TSX-V: LMR
Vancouver, B.C. Lomiko Metals Inc. (TSX-V:LMR, OTC:LMRMF, FSE
H8B)
(“Lomiko”) and Canada Strategic Metals Inc. (“Canada Strategic”) (TSX.V: CJC;
FSE: YXEN; OTC-BB: CJCFF) are very pleased to confirm Lomiko’s acquisition
of a 40% interest in the La Loutre Property (see Lomiko’s press release dated
September 23, 2014 for more details on the initial transaction) and announce a
new option agreement between the two companies following a successful drilling
campaign on the La Loutre Property.
Canada Strategic has recently sought to divest itself of graphite assets and an
opportunity to acquire the Lac Des Illes Property arose for Lomiko. As such,
Lomiko and Strategic Metals have agreed on the terms of an additional option
pursuant to which Lomiko shall have the exclusive right and option to acquire an
additional 40% undivided interest in the La Loutre Property and an 80%
undivided interest in the Lac des Îles Property in exchange for a payment of
$10,000, the issuance of 3 million common shares of Lomiko and the funding of
$2.75 million in exploration expenditures over a 2 year period.
The Lac des Iles West property consists of 1 large contiguous block of 104
mineral claims totaling 5,601.30 hectares (56.01 km2) that borders the western
limit of the Imerys Lac Des Illes property which is the location of the Imerys
Carbon and Graphite Mine and Processing Facility. The Property is close to the
town of Mont-Laurier, 150 km northwest of Montréal in southern Québec.
As for the La Loutre Property, Lomiko had optioned the property from Canada
Strategic in September 2014 to explore for high grade, crystalline flake graphite
deposits that were near surface and for graphite flakes with high carbon purity.
Lomiko is especially interested in 6 drill hole intercepts that met or exceeded the
criteria jointly established by Canada Strategic and Lomiko. Further, these
intercepts indicate the possibility of significant tonnage of high grade graphite
near the surface
"Each of these drill holes merit further investigation," stated Mr. A. Paul Gill,
CEO, "Overall, the property has met our criteria and further exploration is
warranted."
Highlighted Results
Hole #
From
(m)
To (m) Length* (m) Gp %
LL-14-05 6.65 135.00 128.35 4.72
Including 6.65 20.20 13.55 9.37
Including 104.00 130.40 26.40 8.42
LL-14-15
including
3.40
10.20
56.65
25.55
53.25
15.35
4.40
7.46
LL-14-17 3.70 17.90 14.20 6.52
LL-14-19 3.00 15.40 12.40 5.36
including 13.00 15.40 2.40 15.65
37.30 60.00 22.70 6.64
including 38.35 49.00 10.65 11.18
66.00 75.65 9.65 4.55
LL-14 -21 15.3 35.6 20.3 8.01
LL-14-24 14.1 32.25 18.15 7.73
including 14.1 19.4 5.3 13.15
Details of the transaction
In order to acquire (i) an additional 40% undivided interest in the la Loutre
Property, thereby bringing its total interest to 80%, and (ii) an 80% undivided
interest in the Lac des Îles Property (collectively,the “Option”), Lomiko will need
to complete the following: pay a non refundable amount of $10,000 to Canada
Strategic upon the execution of the option agreement between the parties, issue
to Canada Strategic 3,000,000 common shares of Lomiko at a deemed price of
$0.07 per share within five (5) business days following the receipt of the required
regulatory approvals, and complete or fund $2.75 million in exploration expenses
on the La Loutre Property ($1.5 million, of which $950,000 by no later than
December 31, 2015 and $550,000 by no later than December 31, 2016), on the
Lac des Îles Property $250,000 (of which $150,000 by no later than December
31, 2015 and $100,000 by no later than December 31, 2016) and on other
mining rights of Canada Strategic ($1 million of which $700,000 by no later than
December 31, 2015 and $300,000 by no later than December 31, 2016). Canada
Strategic will remain the operator of the exploration programs on the properties
until completion of the Option by Lomiko, at which time the parties will form a
joint venture on the La Loutre Property and on the Lac des Îles Property, and
Lomiko will become the Operator. Canada Strategic will thereafter maintain a
non dilutive 20% interest on both properties until such time as a Feasibility Study
(as such term is defined in National Instrument 43-101 - Standards of Disclosure
for Mineral Projects) is completed on the La Loutre Porperty or the Lac des Îles
Property, as applicable, and the parties elect to proceed with the financing of the
project for the construction and operation of a mine thereon.
The common shares of Lomiko issued in connection with the Option shall be
subject to a regulatory hold period of four months and one day from their date of
issuance. Furthermore, Canada Strategic has agreed to a voluntary 10 month
period on half of the Lomiko shares received (1.5 million). The completion of the
transaction is subject to the approval of the TSX Venture Exchange.
A map of hole localisation and results is available on the web site of the company
at:
Canada Strategic Metals - Graphite exploration & development
COMPLETE TABLE OF MINERALIZED INTERSECTIONS FROM THE