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Forum Energy Metals Corp. (TSXV:FMC) (“Forum”) and Golden Share Resources Corp. (TSXV: GSH) (“Golden Share”) are pleased to announce they have entered into a strategic partnership and have acquired, by staking, 32 mineral claims covering 661 acres of the Afton Vanadium Deposit in western Wyoming (Figure 1). United States Geological Survey Professional Paper 1637 references a …
Forum Energy Metals Corp. (TSXV:FMC) (“Forum”) and Golden Share Resources Corp. (TSXV: GSH) (“Golden Share”) are pleased to announce they have entered into a strategic partnership and have acquired, by staking, 32 mineral claims covering 661 acres of the Afton Vanadium Deposit in western Wyoming (Figure 1). United States Geological Survey Professional Paper 1637 references a historical resource of 30 million tons averaging 1.1% V2O5(Not NI 43-101 Compliant*). Forum and Golden Share equally funded the acquisition, with the intent of forming a 50/50 joint venture. Forum will be the Operator. Golden Share, which is developing opportunities related to vanadium-based energy storage solutions, retains a right of first refusal on the future off-take of vanadium. Sampling of the deposit for the completion of metallurgical studies will commence later this month.
Forum President and CEO Rick Mazur, commented, “We are excited to enter into a partnership with a vanadium battery technology company to evaluate the Afton Vanadium deposit. Vanadium prices have risen sharply amid tight supply, and with new developments in vanadium redox flow batteries for grid-scale wind and solar energy storage, the market for vanadium is expected to remain very strong.”
Golden Share President and CEO Nick Zeng, commented, “We are pleased to have partnered with Forum to help us secure battery grade vanadium to meet the future demands for our vanadium battery business developments.”
The Afton Vanadium Deposit*
The vanadium found in the Phosphoria Formation of western Wyoming is remarkably consistent in black shale, oolite and mudstone beds in the Afton area. During a program of exploration and development by the U.S. Geological Survey (USGS) in co-operation with the U.S. Bureau of Mines from 1942 to 1944, 123 trenches, four shafts and six adits were worked and sampled. On the basis of this data, 30 million tons of vanadium resources averaging 1.1% V2O5 are estimated by the USGS.
This style of mineralization is comparable to deposits being mined economically for vanadium at the Qianjiaping Vanadium Mine (“Qianjiaping”) in Shaanxi Province, the largest operating primary vanadium mine in China since 2011 with grades of approximately 1% V2O5. The style of mineralization and grade at Afton are comparable to Qianjiaping.
Wyoming has ranked consistently in the top ten mining jurisdictions in the Fraser Institute Annual Survey of Mining Companies for the past six years.
*This historical resource estimate was completed prior to the implementation of National Instrument 43-101. Given the extensive field work and analysis completed by the U.S. Geological Survey and the (then) U.S. Bureau of Mines during 1942 to 1944, the Company believes the historical estimate to be relevant and reliable. However, a qualified person has not completed sufficient work to verify and classify the historical estimate as a current mineral resource, and the Company is not treating the historical estimate as a current mineral resource. Hence, the estimate should not be relied upon. It should be noted that mineral resources, which are not mineral reserves, do not have demonstrated economic viability.
Agreement Terms
Forum and Golden Share have entered into an agreement to equally share in the costs of staking the Afton Vanadium deposit, conducting a sampling program on the deposit and shipping the samples for testing by Northwest Mining and Exploration Group Co. Ltd. for Nonferrous Metals, the owner of Qianjiaping and a strategic partner of Golden Share. (Please refer to Golden Share press release dated May 24, 2016.) . Upon conclusion that a marketable vanadium pentoxide product can be processed, Forum and Golden Share will enter into a 50/50 Joint Venture Agreement on the following basic terms;
- Forum will be Operator.
- Forum and Golden Share would contribute to the costs of further programs based on their pro rata interest in the Joint Venture, failing which their interest would be subject to standard dilution. If a party dilutes to less than 20%, then that party will revert to a 1% net sales royalty.
- Each party has a right of first refusal on the sale of the other party’s equity interest.
- Golden Share has a right of first refusal to any future offtake agreement for vanadium only.
Figure 1: Location Map of the Afton Vanadium Project
To view an enhanced version of Figure 1: Location Map of the Afton Vanadium Project, please visit: [https://orders.newsfilecorp.com/files/4908/35216_a1528823702564_92.jpg]
Richard Mazur, P.Geo. and Forum’s President, CEO and Qualified Person under National Instrument 43-101, has reviewed and approved the contents of this news release.
About Forum Energy Metals
Forum Energy Metals Corp. is an exploration and development company for energy metals, notably copper, vanadium and uranium and is evaluating other energy metals opportunities in North America. Forum has prioritized exploration of its Janice Lake Sedimentary Copper Project whereby Forum can earn a 100% interest under option from Transition Metals Corp.
In addition, Forum is well positioned for when the uranium market rebounds with interests in seven drill ready projects in the Athabasca Basin, all assembled by a highly experienced team of exploration professionals with a track record of mine discoveries for unconformity-style uranium deposits in Canada.
About Golden Share
Golden Share Resources Corporation is a junior natural resource company focusing on mineral exploration in the province of Ontario, Canada, a mineral rich and politically stable jurisdiction. Golden Share has secured an opportunity related to energy storage. As announced on April 17, 2018, Golden Share intends to spin out its energy storage business into a new public entity, with the Company retaining its mineral exploration business.
ON BEHALF OF THE BOARD OF DIRECTORS
Richard J. Mazur, P.Geo.
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information contact:
Rick Mazur, President & CEO
mazur@forumenergymetals.com
Tel: 604-630-1585
Craig Christy, VP Corporate Development
cchristy@forumenergymetals.com
Tel: 250-863-0561
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