Dec. 7, 2009 (TheNewswire.ca) --
Vancouver, British Columbia, Canada, December 7, 2009 - Rock Tech Resources Inc. (OOTC:RCKTF) (TSXV:RCK) (TSX-Venture: RCK; Frankfurt: RJIA)(the "Company" or "Rock Tech") is pleased to announce that it has closed and received regulatory approval on the acquisition of all of the issued and outstanding shares of James Bay Midarctic Developments Inc. and mineral leases from Lithium One Inc. (OOTC:LITHF) (TSXV:LI) in respect to the Georgia Lake Lithium Project in exchange for an aggregate of 6,300,000 common shares of the Company. All securities issued under the transaction will be subject to a four month hold period until March 21, 2010.
The Georgia Lake lithium project covers 25 of approximately 50 known lithium bearing occurrences within the Georgia Lake area. A review of historical exploration work indicate that six of the eight areas on the property have cumulative historical resource estimated to be 9 million tons with a weighted average of 1.14% Li2O (lithium oxide)(source: E.G. Pye, 1965, Geological Report 31, Ontario Department of Mines). Over 200 drill holes with approximately 33,000 metres of diamond drilling were completed on the property by previous operators in the late 1950s.
During 1956 to 1957 underground development was carried out on the Nama Creek claim block of the project. A vertical four-compartment shaft was sunk to a depth of 153.3 metres (503 feet) which included stations at depths of 45.7 metres (150 feet), 91.4 metres (300 feet) and 137.2 metres (450 feet). Since 1957, no effective exploration or development work has been completed on the project due to a retraction in the lithium market during that period.
Paul Chow, Company President and CEO, commented, "We are delighted to have completed the acquisition of the Georgia Lake lithium properties and to have developed a good relationship with the Vendors, James Bay Midarctic Development Inc. and Lithium One Inc. Our immediate objective is to bring historical resource estimates to NI43-101 standards and initiate a pre-feasibility study for the project. To that end, a preliminary exploratory drill program has already commenced and will serve as the basis for developing a detailed exploration plan to confirm historical results. Furthermore, we are pleased to have partnered with MGI Securities, who will act as our agent for the equity financing we require to fulfill our mandate to develop our lithium assets."
The Georgia Lake properties is comprised of 23 mining claims covering 3,616 hectares in 226 units, and 61 mining leases covering 1,049 hectares in the Thunder Bay Mining Division in northwestern Ontario. These patented and unpatented claims are located in eight different claim blocks on the property.
The properties are located about 145 kilometers northeast of the City of Thunder Bay. The principal means of access to the area are the Thunder Bay to Longlac branch line of Canadian National Railways, and Provincial Highway Number 11. Gravel roads and tertiary bush roads provide access to all of the claim groups.
Geologically the area is underlain by metasediments and metavolcanics of Archean age, trending east-west to east-northeast and steeply dipping along the south flank of a regional syncline. These metasediments were invaded by large masses of Algoman granitic rocks and by numerous sills and dykes of genetically related porphyry, pegmatites, and aplite. These Archean metasediments are overlain by a thin cover of Sibley sediments which were subsequently intruded by diabase dykes and sills of Proterozoic age.
The Georgia Lake pegmatites contain lithium bearing mineral spodumene at many places in the area. Other than spodumene, beryl, columbite, molybdenite, amblygonite, apatite, and bityite were also identified during historical work which enhances the lithium and rare earth elements potential of the area. A summary of the historical exploration work and historical resource estimation done by previous operators at eight claim blocks on the Georgia Lake properties is presented as follows and proceeding table (Table 1):
1. The Aumacho River Property consists of unpatented mining claims of 46 claim units, covering 736 hectares (1,840 acres) where at least three lithium bearing pegmatites are located. A mill test carried out by the Department of Mines and Technical Surveys (Ottawa, Ontario) indicated that heavy media separation would yield 6.27% lithium with a recovery of about 90%, with a second test indicating that floatation would yield concentrate containing 5.93% lithium also at 90% recovery.
2. The Jean Lake Property consists of a roughly square block of 25 mining leases which includes 3 unpatented mining claims in 36 units for a total area of 961 hectares. The mining leases contain five known spodumene-bearing zones and the mining claims cover at least three zones of lithium occurrences. All eight pegmatite zones have been historically explored by stripping or rock trenching with five of the eight zones having been tested by diamond drilling.
3. The Conway Property consists of five contiguous, unpatented mining claims comprised of 50 claim units covering 800 hectares (2,000 acres). Six known lithium bearing pegmatite occurrences are located on this property. Historical exploration work on all these occurrences indicates a resource estimate of 1.83 million tons of pegmatite at an average grade of 0.96% Li2O.
4. The Foster Lew Property consists of 4 claims in 32 units covering 512 hectares, and four mining leases covering 75 hectares. The Foster lithium bearing pegmatite dyke is exposed for a distance of about 75 metres with a width of 9 metres and has been tested with five diamond drill holes over a length of 122 metres. The Lew pegmatite dyke is located about 450 metres southwest of the Foster dyke and has been traced by stripping for a distance of about 30 metres and having a width of 2 to 3 metres.
5. The McVittie Property consists of six contiguous mining leases covering 88 hectares (220 acres). Between 1955 and 1956, Noranda Mines Ltd. completed an extensive exploration program consisting of prospecting, trenching, geological mapping and diamond drilling. A historical resource of 261,000 tons pegmatite at 1.03% Li2O, based on 12 drill holes totaling 1,093 metres drilling has been estimated.
6. The Newkirk-Vegan Property consists of eight mining leases, covering 121 hectares (302 acres). Between 1955 and 1966, various operators carried out some 4,575 metres of diamond drilling which resulted in historical estimated pegmatite resource of 750,000 tons, with an average grade of 1.38% Li2O. This resource is located in the southeast section of a northwest-southeast trending zone, along a length of about 410 metres.
7. The MNW Property consists of 2 leased claims covering 44 hectares and is surrounded by 6 unpatented claims containing 52 claim units covering 832 hectares. Lithium bearing pegmatite dyke occurs in massive, medium-grained, pink granite and is localized along a fracture with up to 13.5 metres in thickness and has been traced in outcrops and trenches, intermittently, for a distance of about 425 metres. The main dyke was sampled by a past operator and was found to average better than 1.5% Li2O. A subsequent drill program of 14 holes at intervals of 15 metres to 60 metres, totaling 761 metres was carried out.
8. The Nama Creek Property consists of 36 mining leases covering 336 hectares with several spodumene dykes contained in 6 pegmatite zones. During 1955-1957, the property was subjected to intense exploration work comprising of over 10,000 meter diamond drilling which resulted in a historical resource estimation of 4.29 million tons to a depth of about 305 metres at an average grade of 1.06% Li2O.
Table 1: Historical Resource Estimation of Georgia Lake Lithium Project
Name of Property Historical Estimated Resource* Lithium Grade Historical Exploration
Tons % Li2O
Aumacho River Property 759,475 1.65 Diamond drilling from Oct 1955 to April 1956, and in 1957
96,000 1.5
Conway Property 1,830,000 0.96 82 drill holes, totaling 9,227 metres drilling
Jean Lake Property 1,689,000 1.3 50 drill holes totaling 7,425 metres drilling
McVittie Property 261,000 1.03 12 drill holes totaling 1,093 metres drilling
Nama Creek Mines 2,784,000 1.11 57 drill holes totaling 10,817 metres drilling
1,508,332 0.96
Newkirk-Vegan Property 75,000 1.38 4,575 metres diamond drilling to explore the dyke for about 600 metres strike length
Total Estimated Historical Resource* 9,002,807
Average Grade* 1.14%
*The historical resource estimate cited in this press release are taken from Ontario Department of Mines Geological Report No. 31 titled, "Geology and Lithium Deposits of Georgia Lake Area", by E.G. Pye, 1965. The author of the report took resource estimates from the assessment reports filed by previous operators, and other available sources. The company believes that the estimate is relevant to an appraisal of the merits of the property because it was based on drilling, trenching and other exploration work in each claim block on the property, and because there is no evidence of any subsequent resource estimation work on the property. No additional recent data on resource estimates are available in the public domain. No additional work has been completed by a qualified person to classify the historical resource estimate as a current resource or reserve. The company is not treating the historical resource as a current mineral resource or reserve. The historical resource estimate should not be relied on and does comply with NI43-101 standards.
Further to Paul Chow's comments regarding the Company's plan to raise capital, Rock Tech also announces that it has engaged MGI Securities Inc. (the "Agent") to act as agent for a brokered private placement, on a best efforts basis, of up to $1.0-million (Canadian) in units of the Company ("Units") or up to 5 million Units at subscription price of $0.20 per Unit (the "Offering"). Each Unit consists of one (1) common share of the Company and one (1) common share purchase warrant of the Company (each, a "Warrant"). Each Warrant will entitle the holder thereof to purchase one additional common share of the Company (each, a "Warrant Share") at an exercise price of $0.40 per Warrant Share to the extent such Warrant is exercised on or before the date that is 24 months from the date of closing. In the event that after four months and one day after the closing, the closing price of the Company's common shares on the TSX Venture Exchange (or such other stock exchange on which the Company's shares are listed and where a majority of the trading volume occurs), for a period of ten (10) consecutive trading days equals or exceeds $0.60 per share, the Company will, within five (5) days after such an event, provide notice to the warrant holders of early expiry of the Warrants held by each warrant holder and thereafter, such Warrants will expire at 3:30 p.m. (Eastern Time) on the date which is twenty-one (21) days after the date of the notice to the warrant holders.
In consideration of MGI Securities Inc. acting as the agent for the Offering, they will be compensated by way of 8% in cash commission based on the aggregate number of Units sold pursuant to the Offering. In addition, the Company will issue to the Agent, non-transferable compensation options ("Agent's Compensation Options") equal to 10% of the aggregate number of Units sold pursuant to the Offering. Each such Agent's Compensation Option entitles the Agent to purchase one Unit of the Company at $0.20 per Unit at any time prior to the date that is 24 months from the applicable date of issuance.
The net proceeds of the private placement will be used to finance the administration, exploration and development activities on the Company's Georgia Lake and Kapiwak lithium projects and for working capital.
Completion of the Offering is subject to the receipt of all requisite regulatory approvals, including the approval of the TSX Venture Exchange.
Technical information in this news release has been reviewed by Afzaal Pirzada, P.Geo., Vice President, Exploration of the Company and a Qualified Person as defined in NI 43-101.
About MGI:
MGI Securities Inc. is an integrated Canadian investment dealer offering professional wealth management solutions for individual investors, a comprehensive range of specialized services (OOTC:SSRV) for institutional investors, and corporate finance advisory services for issuers, including mergers and acquisitions, equity underwritings, corporate restructuring, structured financings, market research, and business valuation services. MGI is based in Toronto, with additional offices in Winnipeg, Saskatoon, Calgary and London, Ontario. MGI is a member of IIROC and is a subsidiary of Jovian Capital Corporation (TSX: JOV). MGI has approximately $1.1 billion in client assets under administration.
For further information: John A. McMahon, Investment Banker, MGI Securities, (416) 777-5178, jmcmahon@mgisecurities.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Paul Chow
Director, President and CEO
For more information, please contact:
Paul Chow, President and CEO
Rock Tech Resources Inc.
Suite 400, 789 West Pender Street
Vancouver, B.C., V6C 1H2
Telephone: (604) 688-1140
Facsimile: (604) 688-1173
Email: info@rocktechresources.com
Disclaimer and Cautionary Statement Regarding Forward-Looking Information
Neither 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 press release. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.
All statements, trend analysis and other information contained in this press release relative to markets about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements even if circumstances or management's estimates or opinions should change. Investors should not place undue reliance on forward-looking statements.
Rock Tech Resources Inc. seeks safe harbor.
Copyright (c) 2009 Thenewswire.ca - All rights reserved.
