Correction - HLM Forms Advisory Board and Appoints Peter J. Vanstone, P.Geo and Proposes $369,900 Shares for Debt Financing
Sudbury, Ontario (FSCwire) - This press release corrects the press release disseminated April 28, 2016 at 11:12 a.m.ET. The press release contained incorrect information in the 4th and 5th paragraphs. The corrected press release is below:
Sudbury, Ontario –April 28, 2016 - Houston Lake Mining Inc. (TSX.V: HLM), is a mining exploration company which is actively exploring for rare metals lithium, tantalum, rubidium and cesium by currently advancing its 100% owned and optioned PAK Lithium Project in northwestern Ontario, Canada.
HLM is announcing it has formed an Advisory Board. Under the Terms of Reference for the Advisory Board, HLM may appoint one or more advisors whereas such advisors will be referred to as Advisory Board Members. The Corporation will seek to select individuals based on their knowledge, expertise and experience, in either business affairs generally or HLM’s industry in particular, who are capable of making a valuable contribution to HLM’s business.
HLM is pleased to announce that Peter J. Vanstone, P.Geo is the first member appointed to the advisory board. Mr. Vanstone has specialized expertise in rare metals with over 35 years of lithium, tantalum, cesium and rubidium exploration and mine production in the Canadian Shield. He is a former Chief Geologist with the Tantalum Mining Corporation of Canada Ltd. (Tanco). The Tanco facility, located in southeastern Manitoba, is a cesium chemicals producer that also produced lithium mineral concentrates from 1986 until operations were suspended in 2009, and tantalum mineral concentrates until March 2013. He is a graduate of Lakehead University with an HBSc in geology and is a member of the Association of Professional Geoscientitsts of Ontario.
HLM is also pleased to report that it has received a positive response from two creditors concerning a “Shares for Debt Financing”. HLM proposes to issue up to 1,666,254 common shares at a price of $0.24. The financing is a 10% discount to the current market, subject to regulatory approval and would have a hold period of four months.
$339,901 of debt is owed to a company owned by one “non-arm’s length” individual. The non-arm’s length portion of the proposed financing is therefore 1,416,254 common shares at a price of $0.24 per share.
A $60,000 debt is owed to one “non-arm’s length” individual. This non arm’s length portion of the financing is therefore 250,000 common shares at a price of $0.24 per share.
Management believes that the proposed Shares for Debt financing will strengthen the balance sheet and increase the attractiveness of the Company for future financings.
The Company also announces that it has granted an additional 800,000 stock options. The options are set for a period of five years, expiring on April 28, 2021. The options are priced at $.24 and are subject to regulatory approval.
About the PAK Lithium Project
The PAK Lithium Project lies close to the boundary between two geological sub-provinces of the western Superior geologic province in northwestern Ontario and hosts a rare metals pegmatite deposit. The deposit is an LCT (lithium- cesium- tantalum) type pegmatite. These types of pegmatites have been the principal source of hard rock lithium, tantalum, rubidium and cesium ores mined in the world but there are comparatively few commercially-viable deposits.
HLM is actively exploring its 100% owned and optioned project which contains the Pakeagama Lake pegmatite. The deposit is one of the highest grade lithium deposits in North America which has a current Measured and Indicated Resource of 7.89 million tonnes of 1.73% Li2O Eq. and Inferred Resource of 295,600 tonnes of 1.35% Li2O Eq. which has a technical/ceramic grade spodumene with low inherent iron (below 0.1% Fe2O3). The deposit has adjacent zones that are enriched in rubidium and tantalum. HLM is also evaluating the phased co-production of tantalum and mica-product concentrates once lithium mineral production has been commercialized.
The deposit now has a known 500m strike length with an estimated true width varying from 10m to 125m with a sub-vertical orientation. The resource remains open to depth and along strike to the northwest and southeast.
About Houston Lake Mining Inc.
HLM’s goal is to become a fully integrated lithium, rubidium and tantalum producer with development of the PAK Lithium Project in Ontario, Canada. Based on the PAK deposit’s high-purity, technical-grade spodumene, a relatively lower capital requirement to enter in to the lithium supply market is possible by firstly becoming a technical-grade lithium concentrate supplier. HLM is focused on a staged approach to indirectly participate in the burgeoning lithium battery industry by taking advantage of the disruptive change to market fundamentals by targeting the ceramic-glass industry (industrial users). Currently, the glass/ceramics segment is the second largest in total lithium demand whereby supply pressure is taking place due to the threat of lithium battery growth.
HLM has a total of 119,301,940 common shares issued and outstanding. For additional information, please visit the company website at www.houstonlakemining.com.
Company Contact Information
| Trevor R. Walker, President | Henry J. Kloepper, CEO |
| 2736 Belisle Drive | T. +001 416.520.0187 |
| Val Caron, ON | |
| P3N 1B3 CANADA |
T.+001 705.897.7622
F.+001 705.897.7618
Forward-looking Statements
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. This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company’s registered filings what are available at http://www.sedar.com
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public://news_release_pdf/HLMcorrrective04282016.pdf
Source: Houston Lake Mining Inc. (TSX Venture:HLM) http://www.houstonlakemining.com/
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