Mining News: Northern Neighbors: Equitorial Exploration to acquire Strategic lithium property in NWT

Strategic Metals Ltd. July 27 announced that it has sold its interest in the Li lithium property to Equitorial Exploration Corp. Located in western Northwest Territories, adjacent to the Yukon border, the Li property hosts the Little Nahanni Pegmatite Group lithium-cesium-tantalum pegmatite dykes. In exchange for the property, Equitorial has agreed to issue 7.5 million shares and 2.5 million warrants to Strategic. Upon TSX Venture Exchange acceptance of the transaction, Equitorial will issue 5 million of the shares. The remaining shares and warrants will be issued within a year. Each warrant will entitle Strategic to purchase one additional Equitorial share for C10 at any time within two years of the issuance. Equitorial has also agreed to pay C$100,000 to cover the costs of Strategic’s 2016 work program on the Li property. Strategic has also retained a 2 percent net smelter return royalty interest in all future production from the property. Equitorial can at any time, purchase one-half of the NSR from Strategic for C$2 million. The Little Nahanni Pegmatite Group consists of several dyke swarms, each containing multiple closely spaced dykes. Spodumene is a major component of several of the dykes. Channel samples across outcrops have assayed up to 1.59 percent lithium oxide over 10 meters and drilling has cut intervals grading 1.2 percent lithium oxide over 10.94 meters and 0.92 percent lithium oxide over 18.27 meters. Prior to finalizing its negotiations with Equitorial regarding the sale of the property, Strategic initiated a two week program consisting of mapping, prospecting and channel sampling. The program which is now complete was designed to evaluate grade, size and density of lithium-bearing pegmatite dykes within four of the dyke swarms at Li.

-Shane Lasley