Acquisition of High Grade Rusty Lake Cobalt-Silver Mine

iCobalt Secures Option to Acquire High Grade Cobalt-Silver Mine

Lithium and cobalt developer MetalsTech Limited (ASX:MTC) is pleased to announce that the Company’s wholly owned subsidiary iCobalt Limited, which it intends to separately list on the ASX in Q1 2018 (iCobalt), has signed a binding option agreement to acquire 100% of the Rusty Lake High Grade Cobalt-Silver Mine located near the Gowganda Township in Ontario, Canada.

Highlights:

  • Option to acquire 100% interest in 52 mining claims for 816 hectares including the historical silver and cobalt producing Rusty Lake Mine which operated between 1910-1913, 1936-1938 and 1964-1966
  • 540 hectares of the project area covers the Nipissing Diabase which is the target geological structure for high grade cobalt, silver and nickel within the area
  • Excellent infrastructure surrounding the project with historical mining activity and located 15km south of the town of Gowganda, Ontario with all-weather road access
  • Recent surface sampling at the Rusty Lake Mine yielded the following assays:
  • 38% Co, 85.7g/t, Ag, 2.08% Ni (stockpile off main mine shaft) – sample Q297453
  • 08% Co, 3540g/t Ag, 8.64% Ni (stockpile off main mine shaft) – sample Q297454
  • 26% Co, 478g/t Ag, 1.31% Ni (stockpile off main mine shaft) – sample Q297455
  • 04% Co, 38.9g/t Ag, 1.6% Ni (stockpile off main mine shaft) – sample Q297456
  • 85% Co, >10,000g/t Ag, 2.97% Ni (angular boulder) – sample Q297458
  • 92% Co, >10,000g/t Ag, 3.93% Ni (angular boulder) – sample Q297457
  • 33% Co, 69.1g/t Ag, 4.79% Ni (stockpile grab coarse) – sample Q297459
  • 8% Co, 34.8g/t Ag, 3.93% Ni (stockpile grab coarse) – sample Q297460
  • 08% Co, 19.4g/t Ag, 0.44% Ni (angular boulder) – sample Q297451
  • 65% Co, 44.4g/t Ag, 0.48% Ni (angular boulder) – sample Q297452

o  1.47% Co, 30.9g/t Ag, 3.52% Ni (NE trench) – sample Q297465

  • AMC Consultants conducting final stages of technical due diligence
  • Attractive share consideration weighted acquisition structure
  • Alto Capital appointed Lead Manager to the iCobalt spinout with MetalsTech shareholders to receive a Priority Offer as well as exposure to a potential in-specie distribution of iCobalt shares

The full ASX announcement can be found by CLICKING HERE


Appendix 3B (Escrow Release)

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MTC Expands Cancet and Renegotiates Terre des Montagnes

Lithium and cobalt developer MetalsTech Limited (ASX:MTC) is pleased to announce that the Company has signed a binding agreement to expand its landholding at the Company’s flagship Cancet Lithium Project in Quebec, Canada.

In addition, the Company has also signed a binding agreement to vary the acquisition structure at the 100%-owned Terre des Montagnes Lithium Project, located contiguous with and along strike of the Whabouchi Spodumene Mine, owned by Nemaska Lithium Inc. (TSX: NMX) in Quebec, Canada.

Highlights:

Expansion of Cancet Landholding

  • Project increase of 3,162 hectares east of and along strike of the main strike to 12,746 hectares within a similar geological environment – multiple pegmatite outcrops are evident from satellite imagery
  • Strategic acquisition completed with minimal dilution and vendor securities subject to escrow

Renegotiation of Terre des Montagnes Project Acquisition

  • Variation to contingent share and cash payments related to the acquisition of the Terre des Montagnes Lithium Project in favour of MetalsTech – 11 million vendor milestone shares cancelled in return for the issue of 1.35 million escrowed shares
  • Strategic project is contiguous with Nemaska Lithium’s Whabouchi Mine containing an NI 43-101 Reserve of 27.3Mt @1.46% Li2O
  • MetalsTech now owns 100% of the Terre des Montagnes Lithium Project, with no further contingent liabilities or expenditure commitments

Commenting on the strategic agreements, Executive Director Mr Gino D’Anna stated:

“Cancet has world class potential and this has prompted us to move swiftly on a low cost consolidation opportunity east of the project. The newly acquired ground is strategically located contiguous to the east along strike of the current mineralised pegmatite zone and we have identified multiple pegmatite outcrops from high resolution satellite imagery. We are planning to commence a maiden mapping program on this ground following our Phase III drill program at the core mineralised zone at Cancet in January. We have also materially reduced the fully diluted capital structure of the company through a renegotiation of legacy share payments related to the Terre des Montagnes acquisition.”

The full ASX announcement can be found by CLICKING HERE


Strong Spodumene Modal Estimates at Cancet Lithium Project

Lithium and cobalt developer MetalsTech Limited (ASX:MTC) is pleased to announce spodumene modal estimates from its recent 1,275m diamond drilling exploration program at the Company’s flagship 100%- owned Cancet Lithium Project in Quebec, Canada.

Highlights:

  • Strongly mineralised spodumene-bearing pegmatite confirmed in multiple drill holes at Cancet starting at or near surface, extending the high-grade deposit down-dip and east along strike
  • 19 diamond drill holes completed as part of Phase II with core samples sent for multi-element analysis including lithium and tantalum – results expected within three weeks
  • High-grade near surface mineralisation estimates include:
    • 16.40m (from 2.10m to 18.5m) mineralised pegmatite intersection within hole MTC17-049 with a spodumene mineralisation estimate of 30%
    • 12.57m (from 5.40m to 17.97m) mineralised pegmatite intersection within hole MTC17-043 with a spodumene mineralisation estimate of 20%
    • 4.14m (from 10.42m to 14.56m) mineralised pegmatite intersection within hole MTC17-51 with a spodumene mineralisation estimate of 35%
    • 4.89m (from 12.92m to 17.81m) mineralised pegmatite intersection within hole MTC17-53 with a spodumene mineralisation estimate of 25%
    • 7.61m (from 17.24m to 24.85m) mineralised pegmatite intersection within hole MTC17-050 with a spodumene mineralisation estimate of 20%
    • 25.32m (from 6.88m to 32.20m) mineralised pegmatite intersection within hole MTC17-044 with a spodumene mineralisation estimate of 10%
    • 4.25m (from 15.22m to 19.47m) mineralised pegmatite intersection within hole MTC17-051 with a spodumene mineralisation estimate of 10%
  • Main pegmatite zone remains open along strike
  • Drill testing at the recently discovered pegmatite outcrop ~1km east indicates potential for significant strike extension and parallel structures
  • Following completion of the Wuxi Baichuan Chemical Industrial Co placement, the Company plans to complete a ~5,000m drill program at Cancet and ~2,000m maiden drill program at Adina

Commenting on recent results, Executive Chairman Mr Russell Moran stated:

“Cancet continues to deliver strong lithium mineralisation starting at surface. We have been successful in extending the high grade mineralised zone along strike and down dip. Our recent agreement with major chemicals manufacturer Wuxi Baichuan Chemical Industrial Co Ltd to take a 10% stake in the Company will provide the necessary funds to advance resource definition and scoping studies at Cancet as well as maiden drilling at Adina. Since we announced the deal we have been flooded with end-user enquiries, both investment and offtake and will be in China next week advancing ongoing offtake discussions and corralling further strategic interest.”

The full announcement can be found by CLICKING HERE


Exploration Target Defined at Cancet

MetalsTech (MTC or the Company) is pleased to announce that an Exploration Target has been independently defined at its flagship 100% owned Cancet Lithium Project, located in Quebec, Canada.

The Exploration Target was formulated following an independent review of the Company’s exploration results including diamond core drilling, assays, field mapping, trenching, rock and channel sampling, magnetic survey and LiDAR survey. The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Highlights

  • Exploration Target defined at the Cancet Lithium Project, comparing favourably with peer hardrock resources 16Mt @ 1.1% Li2O (Mt Cattlin, Galaxy Resources), 18.9Mt @ 1.18% Li2O (Bald Hill, Tawana Resources) and 23Mt @ 1.2% Li2O (James Bay, Galaxy Resources)
  • Planning and permitting is currently underway for the commencement of the next phase of drilling at Cancet – drilling expected to commence January 2018
  • The next phase of drilling to support a maiden JORC Resource, Scoping Study and ongoing offtake discussions with end-users, including pending major shareholder Wuxi Baichuan Chemical Co Ltd
  • Simple DMS processing potential with high lithium deportment ratios from low relative mass feed indicating potential for a low CAPEX and OPEX operation at Cancet
  • Cancet spodumene concentrate is a coarse-grained product at a grind size of 10mm and is highly desirable by potential offtake customers
  • Cancet is located adjacent to key infrastructure and mining services including power, water, gas and road
  • Laboratory assays expected in the next 2 weeks with modal estimates to be released shortly
  • Agreement being finalised for the expansion of the Company’s landholding within the broader Cancet project area

Commenting on the Exploration Target, Executive Director Mr Gino D’Anna stated:

“Cancet clearly has potential to deliver a world-class lithium deposit with shallow high-grade mineralisation. Drill core metallurgical test work has confirmed a primary spodumene deposit and identified a way forward to produce a high value, low impurity spodumene concentrate which can be readily upgraded to lithium carbonate and hydroxide for use in the lithium ion battery market. Our recent agreement with Wuxi Baichuan Chemical Industrial Co Ltd to take a 10% stake will allow us to accelerate development plans. In addition to further drilling at Cancet, we are looking to commence maiden drilling at Adina, which has the potential to join Cancet in a much larger corporate strategy, anchored by growing ties with potential strategic partners and end-users who want to lock down stable long-term supply.”

The full announcement can be found by CLICKING HERE


Placement Cleansing Statement

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Appendix 3B - Completion of Placement

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