Azincourt Energy signs Letter of Intent to acquire five lithium projects in Manitoba

Project location map. — Photo courtesy Azincourt Uranium Inc.

VANCOUVER, British Columbia, Dec. 11, 2017 (GLOBE NEWSWIRE) -- Azincourt Energy Corp. (“Azincourt” or the “Company”) (TSX-V:AAZ) is pleased to announce it has signed a non-binding Letter of Intent (“LOI”) with New Age Metals (TSX.V:NAM) (“the Optionor”) to acquire up to 100% interest in five lithium exploration projects located in the Winnipeg River Pegmatite Field, Manitoba, Canada.

The agreement covers the Lithium One, Lithium Two, Lithman West, Lithman East and Lithman North projects. The land package included in this agreement represents the largest mineral claim holdings (6000 hectares) of projects for the lithium group or type of minerals in the Bird River Greenstone Belt, which contains the Winnipeg River Pegmatite Field.

The Winnipeg River Pegmatite Field is host to numerous lithium-rich pegmatites in addition to the world-class Tanco Pegmatite, a highly fractionated lithium-cesium-tantalum (LCT) type pegmatite that has been mined at the Tanco Mine since 1969 for spodumene (a major rock unit for lithium (Li)), tantalum (Ta), cesium (Cs), rubidium (Rb), and beryllium (Be) ores.

Three of the five projects are drill ready:

Lithium Two Project

• Historical estimate from drilling in 1947 defined 545,000 tonnes of 1.4% Li2O, drilled to a depth of 60 meters
• Field work in 2016 confirmed that the Eagle and FD5 Pegmatites contained significant surface spodumene
• 12 samples collected returned a range of 0.02% to 3.04% Li2O from the Eagle Pegmatite, and up to 2.08% Li2O from the FD5 Pegmatite
• The Eagle Pegmatite is ~1100 meters in length, up to 12 meters wide and open to depth
• Project is adjacent to Quantum Minerals Corp (TSX.V: QMC) Cat Lake Lithium Project (aka Irgon Lithium Mine)

Note: The mineral reserve estimate cited above as part of the Lithium Two project is presented as a historical estimate which does not conform to current NI43-101 standards. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. Although the historical estimates are believed to be based on reasonable assumptions, they were calculated prior to the implementation of National Instrument 43-101 standards. These historical estimates therefore do not meet current standards as defined under sections 1.2 and 1.3 of NI 43-101; consequently, the issuer is not treating the historical estimate as current mineral resources or mineral reserves.

Lithium One Project

• Field work in 2016 sampled several historical pegmatites
• Grab samples of the pegmatitic granites and pegmatites in the project area returned values from 0.00 to 4.33% Li2O with the high values obtained at the Silverleaf Pegmatite
• Several of the other pegmatites in the project area yielded lithium values from lepidolite and spodumene
• Approximately 40 pegmatites are estimated to exist north of Greer Lake with around 100 to the south of the lake
• The Silverleaf Pegmatite was excavated and mined for spodumene in the 1920’s, with surface exposure of 80 m X 45 m
• Several drill ready targets

Lithman West Project

• Historical rock and soil geochemical anomalies
• Anomalies have not been drill tested
• Drill ready

The Lithman West and East projects are adjacent to the Tanco Mine lease property. Tanco Mine is an underground cesium, spodumene and tantalum mine. The mine has the largest known deposit of pollucite and is also the world's largest producer of cesium. The pegmatite ore body now mined by the Tanco Mine was discovered in the late 1920s. Major minerals found in the mine include spodumene (lithium bearing), amblygonite (lithium bearing), pollucite (cesium bearing), and beryl (beryllium bearing) and a host of tantalum bearing minerals.

The additional projects contained in this agreement, Lithman East (adjacent to Tanco) and Lithman North, represent prospective exploration areas that require additional ground work to determine drill targets.

“We are pleased to be able to announce this LOI with New Age Metals.,” said Azincourt Energy Chairman, Ian Stalker. “The lithium market is obviously very strong right now, and the near-term future for lithium demand remains extremely positive. Our decision to expand Azincourt’s focus to include lithium and other materials is something we feel strongly about. To get a foothold and exposure in this environment, at this time, is an important and strategic step for us.

“This, along with our uranium exposure, separates us from a range of junior exploration companies out there and augurs well for our future and investment strategy, particularly now that the uranium market has also started to show signs of life,” continued Mr. Stalker.

Terms

The Optionor, New Age Metals (“NAM”), under its 100% owned subsidiary Canadian Lithium Development (CLD), controls the five project areas. For up to 60% of CLD and the five projects included in this agreement, the Company will pay the Optionor $200,000 (CDN) staged in four equal payments over the next 18 months. In addition, the Company will issue up to 1,000,000 shares, staged in four equal installments, by the third anniversary of the signing of the definitive agreement. Work expenditures in the projects total $2.85M (CDN) over three years, with $500,000 year one, $600,000 year two, $1M year three, plus an additional $750,000 to reach the 60% threshold.

To earn 100% the Company must meet additional requirements. Within 90 days of the Company earning its 60% in CLD or the project, NAM has to the option to enter into a joint venture on a 60% AAZ/40% NAM basis using a standard Canadian Junior Mining joint venture agreement.

In the event NAM does not elect to enter into the above-mentioned agreement then the Company must issue an additional 1,000,000 shares to NAM within 15 days of NAM electing not to participate in the Joint Venture. The Company must also expend an additional $1 million dollars by Oct 30, 2022, on any of the projects it elects to so long as all projects are in good standing. In the event the Company does not make the $1 million expenditure Azincourt’s percentage will remain at 60%.

Upon completion of all stock, property expenditures and cash payments Azincourt will have earned 100% of CLD subject to a 2% net smelter royalty on all five of the projects.

Under terms of the non-binding LOI the Company must complete its due diligence and enter into a definitive agreement no later than January 15, 2018.

All securities issued in connection with the property option will be subject to a four-month-and-one-day statutory hold period. The property option remains subject to a number of conditions, including negotiation of definitive agreements, approval of the TSX Venture Exchange, and such other conditions as are customary in transactions of this nature.

About Azincourt Energy Corp.

Azincourt Energy Corp. is a Canadian-based resource company specializing in the strategic acquisition, exploration and development of alternative energy/fuel projects, focusing on uranium, lithium, cobalt, and other critical energy & fuel elements.

The contents contained herein, which relates to Exploration Results or Mineral Resources, is based on information compiled, reviewed or prepared by Carey Galeschuk, Principal Consulting Geoscientist for New Age Metals. Mr. Galeschuk is a Qualified Person, as defined by National Instrument 43-101 and has reviewed and approved the technical content of this news release.

ON BEHALF OF THE BOARD OF AZINCOURT ENERGY CORP.

“J. Ian Stalker”
J. Ian Stalker, Chairman