M 2: First Gold announces acquisition of two Lithium properties in Quebec
Published in M2 EquityBites on Thursday, 20 August 2009 at 11:49 GMT
Copyright (C) 2009, M2 Communications
Mineral exploration company First Gold Exploration Inc (Frankfurt: F12) announced on Wednesday the acquisition of two Lithium properties located in the Quebec Eastmain Greenstone Belt.
The company said that these properties consist of 95 mineral exploration claims, some of which are still pending, representing approximately 50.3 square kilometres.
Historical samples from these properties have reportedly yielded up to 2.5% of Li2O.
To acquire an initial 51% property interest, First Gold must pay to arm's length parties a total of USD30,000 and issue a total of three million shares at the signing of the final agreement and upon regulatory approval. This is in addition to completing USD300,000 in exploration and/or development work on or before the first anniversary of the signing of the final agreement.
On acquisition of 51% property interest First Gold will have an option to acquire an additional 14% property interest by issuing one million shares to the vendors and complete USD500,000 in exploration and development work on the property on or before the second anniversary of the signing of the final agreement.
On the second anniversary date, after acquiring 65% property interest, the company will have an additional Option to acquire an additional 20% property interest by issuing one million shares to the vendors and complete one million in exploration and development work on the property on or before the third anniversary of the signing of the final agreement.
Once vetted, First Gold will have acquired the 85% property interest and a joint venture would be formed with the vendors.
The vendors will retain a 2% Net Smelter Returns Royalty of which 1% could be bought-back by First Gold for USD1.0m.
First Gold will be required to complete the initial payments and share issue as well as the first and second anniversary commitments; otherwise the claims will revert to the vendors.
First Gold expects to start surface work and prospective drilling as soon as the transaction is accepted by the Regulatory Authorities.
