AIS comments on Pocitos 1 option exercise by Recharge

Mar 24, 2023

2023-03-24 09:29 ET – News Release

Mr. Martyn Element reports

A.I.S. RESOURCES PROVIDES UPDATE ON POCITOS PROPERTIES IN SALTA, ARGENTINA

Recharge Resources has exercised its option to acquire Pocitos 1 from AIS Resources Ltd. option partner Spey Resources. In accordance with AIS’s option agreement with Spey and AIS’s underlying option agreement with Ekeko SA, AIS will receive net proceeds as noted herein.

Martyn Element, chief executive officer of AIS, stated, “This further positive news bears well for a very busy and productive spring for AIS as we move forward with our activities in Argentina.”

AIS underlying option agreement with Ekeko SA

On June 10, 2021, the company entered into an option agreement with Ekeko to acquire a 100-per-cent interest in five mining tenements with a total area of 4,257 hectares located in Salta province, Argentina. Under the terms of the option agreement, the company paid $125,000 (U.S.) for an 18-month option period entitling it to conduct exploration, sampling, chemistry and drilling to determine the commercial viability of the project. The option period was extended to June 30, 2023, at no additional cost. The purchase price of each tenement is $1,000 (U.S.) per hectare, specifically Pocitos 1 — $800,000 (U.S.), Pocitos 2 — $532,000 (U.S.), Pocitos 7 — $800,000 (U.S.), Pocitos 9 — $600,000 (U.S.) and Yareta XIII — $1,525,000 (U.S.). The purchase price is payable 80 per cent in cash and 20 per cent in shares of AIS calculated based on the volume-weighted average price (VWAP) of the AIS shares during the 60 days prior to the date of AIS’s communication of the exercise of the purchase of the mining properties to Ekeko.

Ekeko is a related party of the company insofar as one of Ekeko’s controlling shareholders is also an officer of the company’s subsidiary in Argentina. The company is relying upon exemptions from the formal valuation and minority shareholder approval requirements available under MI 61-101 Protection of Minority Securityholders in Special Transactions. The company is exempt from the formal valuation requirement in Section 5.4 of MI 61-101 in reliance on sections 5.5(a) and (b) of MI 61-101 and the company is exempt from the minority shareholder approval requirement in Section 5.6 of MI 61-101 in reliance on Section 5.7(1)(a) of MI 61-101.

AIS option agreement with Spey Resources

On June 22, 2021, the company entered into an option agreement granting Spey the right to acquire a 100-per-cent interest in Pocitos 1 covering 800 hectares and Pocitos 2 covering 532 hectares on the Pocitos salar located just outside of Salta, Argentina (see news release dated June 24, 2021). Under the terms of the option agreement, Spey paid $200,000 (U.S.) to the company upon signing the option agreement and issued 2.5 million shares of Spey to the company. In addition, Spey was required to expend $500,000 (U.S.) on the property within 12 months from the option agreement date (incurred). The option period was extended to June 30, 2023, at no additional cost. The purchase price of Pocitos 1 is $1-million (U.S.) and of Pocitos 2 is $732,000 (U.S.). Spey has the option to pay the purchase price 100 per cent in cash or 80 per cent in cash and 20 per cent in shares of Spey at the five-day volume-weighted price of Spey’s common shares on the Canadian Securities Exchange prior to the date of exercise. Upon Spey’s acquisition of a 100-per-cent interest in the mining tenements, AIS will retain a 7.5-per-cent royalty on the sales revenue of lithium carbonate or other lithium compounds from the mining tenements, net of export taxes.

If the Pocitos 2 option is exercised AIS will receive additional net proceeds as noted herein.

About Pocitos 1 and 2

Previous surface sampling, trenching and VTEM (versatile time-domain electromagnetic) geophysics carried out in 2018 suggest the continuity of the targeted lithium brine aquifer continuing from the Pocitos 1 block through the Pocitos 2 block with Pit 10 from trenching on the Pocitos 2 block having the highest trench sample at 181 parts per million lithium, the highest lithium value found on the Pocitos salar to date.

Drilling from the Recharge’s 2022 drill campaign at Pocitos 1 assayed 169 ppm and over a two-week period averaging 161 ppm lithium. The 2022 well exceeded Recharge’s technical team’s expectations and that of the measured lithium content of the 2018 discovery wells. Pocitos 2 is permitted to drill two additional wells immediately at Recharge’s go ahead (see Recharge’s news release dated Feb. 27, 2023).

AIS option agreement with C29 Metals Ltd.

On Oct. 14, 2022, the company entered into an option agreement granting C29 Metals the right to acquire an 80-per-cent interest in Pocitos 7 covering 800 hectares and Pocitos 9 covering 600 hectares of the Pocitos project (see news release dated Oct. 19, 2022). Under the terms of the option agreement, C29 paid $50,000 (U.S.) to the company upon signing the option agreement and $230,000 (U.S.) to extend the option to March 30, 2023. C29 must pay $75,000 (U.S.) per licence to extend the option to June 30, 2023. The purchase price for an 80-per-cent interest of Pocitos 7 is $1.36-million (U.S.) and of Pocitos 9 is $1.02-million (U.S.). C29 has the right to buy out AIS’s 20-per-cent interest at a price determined by the FOB (free on board) lithium carbonate price multiplied by 2 per cent of the indicated and measured resource and 0.5 per cent of the inferred resource of the contained lithium carbonate equivalent (LCE).

If the Pocitos 7 and 9 options are exercised AIS will receive additional net proceeds as noted herien.

About Pocitos 7 and 9

C29’s January, 2023, drill campaign on the Pocitos 7 property concluded at 420 metres with a packer test intercepting an over 30 m brine aquifer from 370 to 400 m, at hole (PCT-23-01). A flow test was conducted through a 49-millimetre pipe with a submersible pump and achieved a pumping rate in excess of 2,000 litres an hour (see C29’s news release dated March 14, 2023).

The average grade of three packer assay results was 129 ppm lithium with a maximum assay of 142 ppm lithium indicating a trend that lithium is concentrating at the 400 m depth level above a clay layer with low porosity.

The next step for Pocitos 7 and 9 is to undertake a magnetotellurics (MT) geophysical survey to locate the most prospective position for the next hole. Existing available geophysical data have penetrated only to depths of approximately 250 m, and an MT survey will allow mapping of geologic structures to depths of at least 500 m.

The two concessions which comprise the Pocitos 7 and 9 projects are located in the southern central part of the salar de Pocitos. Pocitos 9 is approximately 2.6 kilometres to the south of Pocitos 7.

About Yareta XIII

AIS has retained the option to acquire Yareta XIII, which covers 1,525 hectares, located in the south of the Cauchari salar in Jujuy province. Key features are:

Substantially explored by Orocobre — sampling drilling and geophysics nearby;
VTEM geophysics show low (0.026) nearby by Orocobre in 2010;
Drill hole data suggest the lithium brines are at depth and concentrated;
50 km from San Antonio de la Cobre (2,000 people);
Easily accessible by road — highway goes through northern section;
Friendly pro-lithium indigenous communities close by at Olocapto.

To acquire 100-per-cent interest is Yareta XIII, AIS must pay the amounts noted herein by June 30, 2023.

Resignation of Anthony Balme, director

The company also announces that Mr. Balme has resigned from the board of directors, effective March 15, 2023. The company would like to thank Mr. Balme for his contribution and wishes him well in his future endeavours.

About AIS Resources Ltd.

AIS Resources is a publicly traded investment issuer listed on the TSX Venture Exchange focused on lithium, gold, precious and base metals exploration. AIS’s value-add strategy is to acquire prospective exploration projects and enhance their value by better defining the mineral resource with a view to attracting joint venture partners and enhancing the value of its portfolio. The company is managed by a team of experienced geologists and investment bankers, with a record of successful capital markets achievements.

AIS has a 20-per-cent carried interest with Spey Resources in the Incahuasi lithium brine project in Argentina. AIS has further options to acquire four lithium concessions in the Pocitos salar and one lithium concession in the Cauchari salar in Argentina. AIS has granted the option to acquire the Pocitos 1 and 2 licences to Spey Resources by June 30, 2023 (subsequently optioned by Spey to Recharge). If exercised AIS will retain a 7.5-per-cent royalty. AIS has granted an option to acquire an 80-per-cent interest in the Pocitos 7 and 9 licences to C29 Resources by June 30, 2023. AIS owns 100 per cent of the 28 square km Fosterville-Toolleen gold project located 9.9 km from Kirkland Lake’s Fosterville gold mine, a 60-per-cent interest in the 57 square km Bright gold project (with the right to acquire 100 per cent), a 40-per-cent interest in the 58 square km New South Wales Yalgogrin gold project, and 100-per-cent interest in the 167 square km Kingston gold project in Victoria, Australia, near Stawell and Navarre.

We seek Safe Harbor.

https://aisresources.com/