Cullinan signs LOIs to acquire Li properties in Ontario

Aug 21, 2023

2023-08-21 09:41 ET – News Release

Mr. Marc Morin reports

CULLINAN METALS SIGNS LOI TO ACQUIRE ONTARIO LITHIUM PROPERTIES

Cullinan Metals Corp. has signed non-binding letters of intent with two vendors (vendor one and vendor two) to acquire a 100-per-cent interest in and to a series of highly prospective lithium mineral properties located in Northwestern Ontario.

The LOI with Vendor One is dated July 26, 2023, and it includes a series of mineral projects which are commonly referred to as “Flower Falls”, “Lily Pad”, “Dory Ariel-Lake”, “West Haig”, “East Haig”, “Ratte Lake” and “Flash Lake North”.

The LOI with Vendor Two is dated July 31, 2023, and it includes two mineral projects that are commonly referred to as “Waspesi” and “North Maskerine”.

The Properties:

The Flower Falls, Dory – Aerial Lake, West Haig, East Haig, and Flash Lake properties are located in a lithium-favorable geological setting in the vicinity of the Georgia Lake, Mavis Lake, Separation Rapids and GT1’s Root Lake properties in Northwestern Ontario where lithium prospects and deposits have been discovered. Geologically, t he properties are hosted within metasediments of the English River Subprovince between two muscovite-bearing peraluminous granites. Lithium has been the primary mineral of economic interest in this area and the lithium mineralization style is dominantly hosted within spodumene-bearing pegmatite dykes and sills. The pegmatites of the area seem to be of magmatic origin and are generated by the progressive crystallization of granitic magma. They usually appear as loosely tabular dykes and sills, attenuated lenses, and small irregular-shaped bodies. Metasediments make excellent hosts for lithium-bearing pegmatites. The deposit model for the area indicates that rare-element lithium-cesium-tantalum (Li, Cs, Ta) pegmatites can fractionate up to 10km away from their parent granite (Breaks et al., 2003).

Lilypad is directly adjacent to significant Ta Cs Rb mineralization. The closest significant mineralized outcrop on Lillypad is the JJ Dyke in adjacent property to the SE. Near the southwest edge of the property, on OGS map 992 are some small outcrops that are noted to be pegmatites. No previous drill holes or geochemistry was found in the project area. Very minimal work has been done on these projects.

The lake sediment sampling data collected by the Ontario Geological Survey indicates that the English River Subprovince is host to lithium, yet it is vastly unexplored for LCT-pegmatites. Lake sediment lithium sample results suggest the muscovite-bearing granite is fractionating towards the northeast.

Terms of LOIs:

Pursuant to the terms of the LOIs, the Company was granted the right to conduct a full due diligence investigation on the Properties. This includes the right to visit the Properties and to conduct preliminary sampling and exploration work to the extent permitted by applicable mining laws.

Upon discovery of spodumene mineralization on any of the Properties (the ” Discovery “), the relevant Vendor and the Company will execute either:

An assignment and assumption agreement (the ” Option Agreement “) pursuant to which the Vendor will assign to the Company all rights and interests to the property purchase options agreements;
A property purchase agreement (the ” Purchase Agreement “) pursuant to which the Vendor will grant all rights and interests in and to the Properties to Cullinan.

The considerations for the Option Agreement and/or Purchase Agreement will be negotiated between the Vendor and Cullinan immediately after the Discovery.

Marc Morin, CEO, said, “We are very excited to have entered into the LOIs. The Properties are highly prospective for lithium and also give Cullinan shareholders the opportunity of discovery across nine (9) different locations in Northwestern Ontario.” Marc Morin continued, “There will be no payments or share issuances until the Discovery.”

The scientific and technical information contained in this news release has been reviewed and approved by Afzaal Pirzada, P.Geo., a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

The transactions are arms-length transactions and will not constitute a fundamental change or result in a change of control of the Company within the meaning of the policies of the CSE.

The transactions are subject to conditions precedent including, but not limited to, completion of due diligence, entering into an Option Agreement and/or Purchase Agreement, satisfaction of the conditions negotiated therein and receipt of all necessary regulatory approvals. There can be no assurance that an Option Agreement and/or Purchase Agreement will be entered into or that an acquisition will be consummated on the terms or timeframe currently contemplated, or at all.

About Cullinan Metals Corp.

Cullinan Metals is a Canadian mining and exploration company focused on the development of energy metals. With a strong emphasis on key energy resources such as copper, graphite, and lithium assets, Cullinan is dedicated to unlocking the potential of these resources globally.

We seek Safe Harbor.

https://www.cullinanmetals.com/