Canada invests $70m in Seymour Lake lithium project in Ontario
The lithium mine operated by Australia's Green Technology Metals could become the province's first lithium producer.
Vulcan Minerals Inc. (“the Company”)(TSX VENTURE:VUL) is pleased to announce its intention to undertake a corporate re-organization whereby the Company will spin-out certain of its mineral exploration assets into a separate publicly traded subsidiary company (NewCo). These assets consist of the mineral rights in the Bay St. George basin of western Newfoundland where the Company has discovered the Captain Cook potash deposit. The Captain Cook potash discovery was made with a core hole in 2002 and consists of a 5 meter gross interval grading up to 20.40% potassium oxide (K20) at a depth of 287 meters. It occurs in rocks which are geologically similar to those containing the Sussex potash mine in New Brunswick operated by the Potash Corporation of Saskatchewan. (Visit www.vulcanminerals.ca for further information.)
A new corporate entity will allow the financing of this mineral project separate from the Company’s ongoing petroleum activities in the area. In this regard the Company has retained David C. Carter, P.Geo. of Hy-Grade Geoscience of Halifax to prepare a National Instrument 43-101 compliant report on the resource potential for potash and salt in the Company’s Bay St. George project. Mr. Carter is a professional geoscientist with over 25 years experience including full project evaluation and field management of potash and salt drill programs in Atlantic Canada. The corporate re-organization will proceed by a plan of arrangement or other suitable transaction subject to TSX-Venture Exchange, regulator and court approval as well as shareholder approval. Shareholders of the Company, as of the applicable record date, will receive shares in NewCo on a pro-rata basis. It is anticipated at this time, subject to modification, that the Company will retain approximately 20% of the shares in NewCo post financing. Further details regarding the arrangement will be set out in an Information Circular to be sent to shareholders in advance of a shareholder’s meeting to approve the transaction.
Vulcan is a diversified junior exploration company focused on petroleum exploration in the under-explored Bay St. George basin in western Newfoundland and also holds mineral interests in areas strategic to its operations in Newfoundland and Labrador.
Read the full news release here.
