Jourdan Secures $4 Million Firm Commitment and $6 Million Option from North American Lithium to Explore Vallée Lithium Project
TORONTO, Dec. 19, 2022 (GLOBE NEWSWIRE) — JOURDAN RESOURCES INC. (TSXV: JOR; OTCQB: JORFF; FRA:2JR1) (“Jourdan” or the “Company“) is pleased to announce that North American Lithium Inc. (“NAL”), a subsidiary of Sayona Mining Limited (ASX: SYA; OTCQB: SYAXF) (“Sayona”), which recently entered into an earn-in and joint venture agreement with Jourdan (the Earn-in Agreement”), has deposited C$4 million (the “Escrow Amount”) into an escrow account pursuant to an escrow agreement entered into among Jourdan, Sayona and TMX Trust Company (the “Escrow Agreement”). For more information about the Earn-in Agreement, please see the Company’s press release dated November 14, 2022, which is available under the Company’s SEDAR profile at www.sedar.com.
Pursuant to the Escrow Agreement, NAL is required to spend the full Escrow Amount on exploration activities on 28 claims within the Company’s Vallée lithium project (the “Earn-in Claims”) prior to November 14, 2023, to earn a 25% interest in the Earn-in Claims. Accordingly, NAL’s obligation to spend the Escrow Amount represents a firm commitment under the Earn-in Agreement. To the extent NAL does not spend the full Escrow Amount on exploration activities prior to the deadline, any amounts remaining in the escrow account shall be released to Jourdan in accordance with the Escrow Agreement. NAL also has the option to spend an additional C$6 million by November 14, 2024, to earn a further 25% interest in the Earn-in Claims.
The Company is currently working with NAL to develop a work program to be funded by the Escrow Amount. The parties intend for the work program to include a drilling program that would commence in Q1 of 2023.
“We are keenly looking forward to a joint exploration effort with our newly-found partner, which operates the neighbouring NAL mine,” said Dr. Andy Rompel, Jourdan’s executive chairman. He continued, “With the new funds we intend to explore the known pegmatite swarm even further southeastwards with diamond drilling in pursuit of establishing a preliminary mineral resource estimate.”
Rene Bharti, chief executive officer of Jourdan, stated, “We are extremely fortunate to have a partner like Sayona to help us further explore the Vallée project. Given that we have been advised that NAL is a near term lithium producer with an adjacent mine going into production in early 2023, we believe that Sayona (through NAL) possesses both the financial and processing capabilities for lithium production in the region.”
About Jourdan Resources Inc.
Jourdan Resources Inc. is a Canadian junior mining exploration company trading under the symbol “JOR” on the TSX Venture Exchange and “2JR1” on the Stuttgart Stock Exchange. The Company is focused on the acquisition, exploration, production, and development of mining properties. The Company’s properties are in Quebec, Canada, primarily in the spodumene-bearing pegmatites of the La Corne Batholith, around North American Lithium’s producing Quebec Lithium Mine.
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the Escrow Agreement and Earn-in Agreement, including NAL’s obligation to spend the Escrow Amount, the ability of the Company to develop the work program, jointly explore the Earn-in Claims with NAL, commence a diamond drilling program to extend the known pegmatite swarm, establish a preliminary mineral resource estimate, and execute its business plan, and the ability of NAL to restart its adjacent mine and commence lithium production. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Jourdan to be materially different from those expressed or implied by such forward-looking information, including but not limited to: receipt of necessary approvals; general business, economic, competitive, political and social uncertainties; future mineral prices and market demand; accidents, labour disputes and shortages; and other risks of the mining industry. Although Jourdan has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Jourdan does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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