K9 Gold Corp. (TSXV: KNC) (FSE: 5GP) (OTCQB: WDFCF) (‘K9’ or the ‘Company’) is pleased to announce that it has entered into a definitive share exchange agreement (the ‘Agreement’) to acquire 1415322 B.C. LTD. (‘141 BC’) from the shareholders of 141 BC in exchange for an aggregate of 3,000,000 common shares (the ‘Company Shares’) in the capital of the Company issued to the shareholders on a pro-rata basis (the ‘Transaction’).
On closing of the Transaction, the Company will add 64 claims (3304 Ha) to its JB lithium project in the James Bay region of northern Quebec. This will bring the total project holdings to 5418 Ha in 105 claims. An aggressive summer exploration is now planned and is fully funded.
The Lac Joubert-Tilly (LJ-T) property (the ‘Property’) is located approximately 60 km due east of the previously announced Riviere Salomon (RS) property on the JB Li Project. The LJ-T property is located approximately 400 km east-southeast of Radisson, Quebec, and is immediately adjacent to Winsome Resources recently announced Tilly Project (Winsome company release April 19, 2023). Other projects in the area include Allkem’s James Bay lithium project, which recently received federal approval for development, Patriot Battery Metals Corvette project located 50 km to the west and Winsome Resources Lithium Adina project located approximately 40 km to the west. The LJ-T property is underlain by a package of Archaean rocks that is similar to the geological setting of the Corvette and Adina projects, and includes outcrops of Tilly pegmatites, a known host of lithium in the James Bay region.
About JB Lithium Project
The JB Lithium Project is located in the La Grande sub-province of the Archaean Superior Province in Quebec, and comprises two units, the Riviere Salomon property (and the newly acquired Lac Joubert – Tilly property.
Lac Joubert-Tilly (LJ-T) property
The LJ-T property is underlain mainly by the Archean Joubert Suite and the Salomon River formation. Where the Joubert Suite occurs on the property, it consists of a package of foliated, banded or gneissic biotite-tonalite and granodiorite. The Salomon River formation in the area consists mainly of paragneisses that have undergone moderate partial melting, with 10% or more mobilisate.
Within the property boundaries, the Salomon River formation has been intruded by at least five zones of Tilly Pegmatites which comprise pegmatitic granite with biotite-muscovite-tourmaline-magnetite-garnet assemblages. These pegmatites are a significant lithium target for other explorers in this area. They are in close proximity to the Joubert Suite tonalites which are believed to be the source of lithium in regional discoveries. A 2015 Quebec Government geological mapping program located at least six outcrops of pegmatitic granite, consistent with the Tilly Pegmatites. In addition, one outcrop of an ultramafic intrusive returned an assay of 77 ppm Li, along with 0.10% Ni and 0.30% Cr.
Riviere Salomon (RS) property
The Trieste Formation, which hosts lithium mineralization on the adjacent Adina property, transects the RS property. Within the property boundaries, this Meso-Archaean age formation is mainly an ensemble of mylonites and banded amphibolites derived from basalt, which have been intruded by various intermediate rocks. A significant band of tonalite, part of the Meso-Archaean age Kamusaawach Intrusion, cuts through the centre of the property. Also cutting through the claims is a band of the Neo-Archaean Richardie Suite, an intrusive biotite-magnetite-hornblende granodiorite. The northern portion of the property is underlain by the Neo-Archaean Sauvolles Pluton, which is mainly of granitic composition. There is also a prominent Paleoproterozoic-age mafic dyke (Senneterre dyke system) cutting through the north of the property with a NE-SW orientation.
During a regional mapping program in 2013 by Government geologists, one outcrop was collected sample from the property, reported in the Quebec Government’s online geological database, SIGEOM, an returned a value of 65 ppm Li.
K9 has recently completed a helicopter-borne magnetometer and VLF survey on this property. Results will be reported on completion of data interpretation.
Lac Joubert – Tilly acquisition terms
Pursuant to the Agreement, the Company will acquire from the shareholders of 141 BC (collectively, the ‘Shareholders’) all of the issued and outstanding common shares in the capital of 141 BC, in exchange for 3,000,000 Company Shares, issued to the Shareholders on a pro-rata basis. Following the closing of the Transaction, 141 BC will be a wholly owned subsidiary of the Company.
141 BC is a party to an option agreement (the ‘Option Agreement’) whereby, pursuant to the terms of the Option Agreement, 141 BC may acquire a 100% interest in the Property upon the completion of certain expenditures and cash payments.
The Transaction is subject to the review and approval of the TSX Venture Exchange (the ‘TSXV’). The Company anticipates closing the Transaction shortly after the approval of the TSXV.
About K9 Gold Corp
K9 Gold Corp has assembled a highly-experienced and dynamic team to explore its JB Lithium Project. K9 also operates the Stony Lake Gold Project in central Newfoundland. The project has been acquired from District Copper Corp by an option agreement, whereby K9 can earn up to a 100% interest in the project. The Company also owns a 100% interest in the Desert Eagle Vanadium-Uranium project located in the historic Henry Mountains Mining District in SE Utah. The area has seen extensive historic vanadium and uranium mining and is close to Anfield Energy Inc’s Shootaring Canyon mill.
To ensure a safe workplace environment that protects the health and safety of employees and contractors, K9 Gold follows all federally and provincially mandated and recommended guidelines regarding Covid 19.
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