Zadar Enters Into MOU to Farm Into Ravensthorpe Lithium Project in South Western Australia
VANCOUVER, BC--(Marketwired - July 12, 2016) - Zadar Ventures Ltd. (the "Company") (TSX VENTURE: ZAD) (OTCQB: ZADDF) (FRANKFURT: ZAV) is pleased to announce that it has entered into a Memorandum of Understanding ("MOU") with Macarthur Minerals Ltd. (TSX VENTURE: MMS) ("Macarthur Minerals") to farm into Macarthur Minerals' Ravensthorpe lithium acreage, in the Ravensthorpe region of South Western Australia, covering an area of 91 square kilometres, for minimum expenditure of A$2 million.
MEMORANDUM OF UNDERSTANDING
Macarthur Minerals, through its wholly owned subsidiary, Macarthur Lithium Pty Ltd and ZAD have entered into a binding MOU for entering into a Farm-in Agreement ("FIA") for lithium exploration on Macarthur Minerals' Ravensthorpe acreage.
The key terms of the MOU are:
- ZAD will enter into a FIA for the Ravensthorpe lithium acreage within 4 months.
- entry into the FIA is conditional upon ZAD conducting due diligence within 3 months to confirm that the Ravensthorpe lithium acreage is prospective for lithium and for the Company to conduct due diligence on ZAD.
- ZAD will initially earn into 51% of the Ravensthorpe lithium acreage by expending a total of A $2,000,000 within 2 years from the grant of the Ravensthorpe exploration licenses.
- ZAD will earn into an additional 24% of the Ravensthorpe acreage taking its total interest to 75% upon completing a positive NI43-101 Preliminary Economic Assessment ("PEA") within 3 years from the grant of the Ravensthorpe exploration licenses.
- MLi have a free carried interest during and after farm-in, for the life of the Ravensthorpe tenure and any related project, of not less than 25%.
- Macarthur Minerals will manage the Ravensthorpe lithium exploration program and will be paid a project management fee of 15% of the total expenditure until ZAD has completed a positive NI 43-101 PEA
- ZAD will pay for all expenditure and project management fees monthly in advance and MLi will be reimbursed all its associated costs in full.
- Once ZAD has acquired 75% interest in the Ravensthorpe lithium acreage, ZAD will have the first right to offer to purchase MLi's remaining 25% interest.
- if ZAD does not meet expenditure of A$200,000 in the first 3 months after the FIA has been entered into or by the time the exploration licenses are granted, whichever is later, the FIA will end and 100% of the ownership of the Ravensthorpe acreage will revert back to MLi.
- if ZAD does not complete a positive NI 43-101 PEA, a joint venture will be formed (ZAD 51% and MLi 49%), whereby MLi continues to have free carried interest of 25%, effectively only contributing to 24% of expenditure.
The FIA, although not envisaged, may be subject to regulatory approval.
RAVENSTHORPE ACREAGE
Macarthur Minerals' Ravensthorpe acreage is comprised of two exploration licence applications E74/587 and E74/588, which covers an area of 91 square kilometres, as shown in Figure 1.
The Ravensthorpe acreage, at its closest point, is approximately 7 kilometres from the Mount Cattlin Lithium Project, which is currently mining and processing spodumene and tantalum concentrate near Ravensthorpe in South Western Australia, with targeted production of approximately 150,000 tonnes for 2017. The Mount Cattlin Lithium Project is owned by Australian Securities Exchange listed Galaxy Resources Ltd. (ASX: GXY), who announced a merger with its joint venture partner, Australian Securities Exchange listed company, General Mining Corporation Ltd. (ASX: GMM).
The Ravensthorpe acreage is located within the Cocanarup Terrane, which is dominated by intensely sheared and isoclinally folded Archean ultramafic rocks including spinifex-textured komatiite and pelitic metasediments.
EL74/588 is situated near the margin between the Yilgarn Craton granites and the South-West Terrane greenstone and Annabelle Volcanics to the south west and the Youanmi Terrane greenstones to the north. The greenstones in the south-west include amphibolite, basaltic pyroclastic tuff and metamorphosed basalts. The area has been intruded by numerous pegmatites, feldspar dykes, quartz veins and dolerite dykes. Several pegmatites are known from immediately south of the south-western portion of the tenement throughout the Annabelle volcanics.
E74/587 is positioned primarily on the Annabelle Volcanics dominated by metamorphosed basalt and pyroclastic tuff and adjacent to the Manyutup Tonalite in the same setting as the Mount Cattlin Lithium Project, which is 10 kilometres to the north-east. As indicated in Figure 1, a large pegmatite is mapped on the exploration licence application and extends for almost half its length.
ZADAR VENTURES ACCESS TO MACARTHUR MINERALS TECHNICAL EXPERTISE
Macarthur Minerals will manage the lithium exploration program for the Ravensthorpe acreage contributing the resources of its very experienced lithium technical team, comprising Emeritus Professor Ken Collerson, a member of the Company's lithium advisory board, Dr Andrew Scogings, Mr Graham Jeffress and Mr Ralph Porter from CSA Global Pty Ltd ("CSA Global"), who are independent Western Australia based consultants with substantial experience in lithium. Further details of the expertise of Professor Collerson, Dr Scogings, Mr Jeffress and Mr Porter are contained below.
Paul D. Gray, P. Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the technical information provided in this release.
ABOUT MACARTHUR MINERALS LIMITED (TSX VENTURE: MMS)
Macarthur Minerals Ltd. is an exploration and development company that is focused on identifying and developing high grade lithium and counter cyclical investments that complement Macarthur's capabilities.
ABOUT ZADAR RESOURCES LIMITED
Zadar Ventures Ltd. is a Resource Company listed on the TSX Venture Exchange (TSX VENTURE: ZAD) focused on the acquisition and exploration of economically viable green energy resources in jurisdictions favourable to mining and industry.
ON BEHALF OF THE BOARD OF DIRECTORS
Paul D. Gray, P. Geo.
President
Neither the TSX Venture Exchange nor its Regulation Service 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 press release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at www.sedar.com. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
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Vancouver, B.C. V6C 3K4
Phone: 604-682-1643