Critical Elements and Ionic to Explore Valiquette and Amiral Lithium Properties in Quebec

Critical Elements (TSXV:CRE,OTCQX:CRECF,FWB:F12) and Ionic Power Corp. have entered into an option agreement that gives Ionic the right to acquire up to a 75-per-cent interest in the Valiquette and Amiral projects, located southwest to the Nemaska Lithium Whabouchi deposit.
“The Valiquette and Amiral projects represent a great opportunity for Ionic, Critical Elements and the shareholders of both entities.”
“This option agreement with Ionic will allow the Valiquette and Amiral properties to be explored in detail for a Lithium Pegmatite discovery. Critical Elements is currently focused on the development of its Rose lithium-tantalum project. With Ionic farming into the Valiquette and Amiral projects, shareholders of both companies will be able to benefit from successful exploration of a highly prospective project,” stated Jean-Sebastien Lavallee, President and CEO, Critical Elements.
The Valiquette Property is composed of one block totaling 104 claims covering an area of 5,563.07 ha. It is measuring about 13 kilometers in a SW-NE direction and is contiguous South West to the Duval main block. The property can be accessed by a Hydro-Quebec gravel road up to the Lac des Montagnes, and then by boat. An old winter road along the SE shore of Lac des Montagnes can be used for works. The Valiquette project offers strong lithium potential in a well-established area. The lithium pegmatites tend to occur in swarms in the volcano-sedimentary units.
The Amiral property is composed of one block of 8 claims covering an area of 424 ha. The project is located 80 km NE of Nemiscau airport and can only be accessed by helicopter.
The Valiquette and Amiral properties cover a large part of the regional volcano-sedimentary unit, a favourable unit that hosts Nemaska Lithium’s Wabouchi deposit and the Lemarre showing. Located in the northeastern part of the Superior geological province, and more specifically in the northeastern part of the Lac des Montagnes Formation, the Lac des Montagnes volcano-sedimentary belt is a sequence of aluminous metasediments and amphibolites containing basalts and ultramafic sills.
Terms of the transaction
Under the Agreement, Ionic will earn its interest in Valiquette and Amiral by way of a farm-in arrangement. The key terms of the Agreement are detailed below:
Grant of first option
Critical Elements hereby grants to Ionic the exclusive right and option to acquire, on or before July 31, 2018 an initial 50% Earned Interest in the Properties (the “First Option”) by issuing to Critical $180,000 of the common shares, by paying $37,500 cash and by incurring or funding Exploration Expenditures for a total amount of $1,000,000 on the Property, as follows:
paying to Critical $25,000 cash within a delay of five (5) working days following the execution of this Agreement (non-refundable);
paying to Critical $12,500 cash within a delay of five (5) working days following completion of a Going-Public Event;
by not later than November 30, 2016 or any other later date agreed to by Critical, causing the Resulting Issuer to Critical Resulting Issuer shares having a value equal to $180,000, at an issue price per share equal to the issue price per share for the financing to be completed by the Resulting Issued concurrently with the going public event, failing which such amount shall be payable in cash or, at the sole discretion of Critical, in common shares of Ionic at a price per share acceptable to Critical acting reasonably;
incurring or funding Exploration Expenditures aggregating not less than $1,000,000 on the Property, of which an amount of $500,000 must be incurred or funded before July 31, 2017 and an amount of $500,000 before July 31, 2018.
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