Far Resources Increases its Total Lithium Property by 2200 Hectares Contiguous with its Zoro 1 Claim and Thompson Brothers Pegmatite, Snow Lake, Manitoba
September 28, 2017 – Vancouver, BC: Far Resources Ltd (CSE:FAT) (OTC:FRRSF) (FSE:F0R) (“Far Resources” or the “Company”) has entered into an option agreement effective as of September 20, 2017 (the “Option Agreement”) with Strider Resources Limited (“Strider”) to acquire an undivided 100% interest in highly prospective ground contiguous with its Zoro 1 claim and the claims hosting the historic Thompson Brothers lithium-bearing pegmatite dyke near Snow Lake, Manitoba (the “Property”). The Thompson Brothers dyke is an 800 m long vertically dipping pegmatite dyke with an historic non NI 43-101 resource of 3.97 million tonnes grading 1.29 per cent Li2O. The dyke is currently under option to Ashburton Ventures Inc who recently reported drill results of 22 metres of spodumene mineralization thereby confirming some of the historic drill intercepts. The newly acquired claims, the Zoro1 claim and the Thompson Brothers lithium-bearing dyke are illustrated in Figure 1, below.
Please note that the historical estimate quoted above cannot and is not presented here as current mineral resources or mineral reserves under NI 43-101. The results cited above are presented as an historical estimate which does not conform to current standards, and as such should not be relied upon. Although the historical estimates are believed to be based on reasonable assumptions, they were calculated prior to the implementation of National Instrument 43-101. These historical estimates do not meet current standards as defined under NI 43-101 and therefore should not be relied upon.
Figure 1 Far Resources Lithium Property showing the new acquisition, Zoro 1 and the Thomspon Brothers lithium-bearing dyke.
The Option Agreement
The Option Agreement sets out the terms under which Far Resources can acquire a 100% interest in the Property subject to a 2% NSR (the “Option”) and further sets out how the Company can acquire an undivided fifty percent (50%) interest in the NSR, from Strider.
The Company may exercise the Option by making the following cash payments and common share issuances to Strider:
- Upon signing the Option Agreement Far Resources will pay to Strider $25,000 in cash and $25,000 in shares of Far Resources (paid);
- on or before first anniversary date of the Option Agreement Far Resources will pay to Strider $50,000 in cash and $50,000 in shares of Far Resources and spend $50,000 in exploration expenses;
- on or before second anniversary date of the Option Agreement Far Resources will pay to Strider $50,000 in cash and $50,000 in shares of Far Resource and have spent an accumulated minimum expenditure of $100,000 on exploration expenses;
- on or before third anniversary date of the Option Agreement Far Resources will pay to Strider $50,000 in cash and $50,000 in shares of Far Resources and have spent an accumulated minimum expenditure of $150,000 on exploration expenses; and
- on or before fourth anniversary date of the Option Agreement Far Resources will pay to Strider $75,000 in cash and $75,000 in shares of Far Resources and have spent an accumulated minimum expenditure of an accumulated $200,000 exploration expenses by the end of the first 48 months and an accumulated total of $500,000 on exploration expenses by the end of the first 84 months.
All shares issued under the Option Agreement will be subject to a four month and one day statutory hold period from the date of issuance.
Once the Company has exercised the Option, Far Resources may acquire acquire an undivided fifty percent (50%) interest in the NSR, being 1% of the NSR (“Net Smelter Return”), for a one time payment of $1,000,000 together with any accrued but unpaid NSR at the time, prior to the commencement of commercial production.
During the option period, Far Resources will be solely responsible for carrying out and administering exploration, development and mining work on the Property and for maintaining the Property in good standing.
Keith Anderson, CEO of Far Resources, commented, “We are extremely pleased to have acquired this option which includes claims immediately adjacent to the Thompson Brothers lithium project. With this acquisition, we now hold all the land between Zoro and Thompson Brothers. Both of these properties host historical resources which are the subject of on-going exploration, while the area in between has received little exploration. With the positive results received so far from our Zoro property and others nearby, we look forward to exploring the newly acquired claims. Far is currently drilling at Zoro, and we are looking forward to learning more about its potential and controls on lithium mineralisation. The current drill program at Zoro will be followed by additional surface exploration on all our optioned ground to determine the potential for a mineable resource.”
The technical content of this news release has been reviewed and approved by Mark Fedikow P.Geo., a qualified person as defined under NI 43-101.
About the Company
Far Resources Ltd. is an exploration company, publicly traded on the Canadian Securities Exchange under the symbol FAT, focused on the identification and development of high potential mineral opportunities in stable jurisdictions. Far Resources may acquire or option properties of merit to meet its ongoing goal to locate, advance and unlock the potential of these mineral opportunities. Far Resources currently has two mineral projects in place. The Zoro Lithium project covers a number of known lithium pegmatite occurrences and is located near Snow Lake, MB. Manitoba has been ranked as the world’s second best jurisdiction for mining investment by the Fraser Institute. The second project is the Winston project in New Mexico, USA, another historic mining property with potential for silver and gold; New Mexico is also listed by the Fraser Institute, ranking in the top 25 mining jurisdictions in the world. Please visit our updated website at www.farresources.com for full details on our current projects. Far Resources has optioned its wholly owned Tchentlo Lake Property in British Columbia, Canada to Alchemist Mining Inc.
ON BEHALF OF THE BOARD OF DIRECTORS OF
FAR RESOURCES LTD.
Keith C. Anderson, President
The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.
This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.