Lomiko Metals Inc TSXV:LMR announced an agreement to acquire a 100% interest in the Quatre Milles Graphite Property in southwest Quebec. Under the agreement Lomiko will make the following payments and share issues to Zimtu Capital Corp TSXV:ZC and one of its prospecting partners: $25,000 on signing, one million shares on TSXV acceptance of the agreement, $25,000 and 500,000 shares six months later, one million shares six months after that and 1.5 million shares one year later. Within a year of TSXV acceptance, Lomiko will complete $200,000 of exploration on the property. The vendors will retain a 2% NSR on the property, of which 1% can be purchased for $1 million.
Lomiko CEO Paul Gill tells ResourceClips.com, “It’s not an entirely new direction for our company because we’ve already been in the sector for minerals used in lithium-ion batteries, and this is just a new angle to that industry. So we’re looking for new opportunities. We’re also looking at vanadium, cobalt and rare earths. The valuation on this particular project, the location and the ability to move it forward quickly were there, and that’s what shareholders and directors are looking for.
In this case, we might have enough information based on historic exploration and previous drill holes to go right to the point of drilling—Paul Gill
“We’re getting consultants on board to determine the next steps,” he adds. “The usual steps are a magnetic survey to find the magnetic highs. That’s usually where the graphite will be. After that you can go to drilling. In this case, we might have enough information based on historic exploration and previous drill holes to go right to the point of drilling.
“It’s hard to find people with graphite expertise, and that was one of the things we considered. We tentatively have a group in place. We’re also looking for possible directors who can advise on future acquisitions or whether this project is a go after the first round of exploration. A director takes a different tack than a consultant in this field. A director will look after the company while a consultant will want to keep on drilling,” Gill says.
“We’ve put out the word that we’re looking for acquisitions, and people have been contacting us. We’re always having conversations on different properties, and I review at least 10 properties a month in all the fields, including gold, copper, zinc, the rare earths, etc. We do have a lithium property in Chile, and we have a gold-zinc property in northern BC.
“The gold property is in an interesting phase right now,” he points out. “We’ve finished $350,000 to $400,000 worth of work—soil and rock samples and an exploratory drill hole—and we found a zinc anomaly that’s about 100 hectares, so that’s a drill target for sure. We’re going to do some IP before the next drill season to identify specific drill targets. Then we’ve got rock and chip samples and drill results coming back from the labs, so we’ll report on those as well. So it’s going pretty well. The most interesting thing that’s happening up there is that the former Hawthorne mine, Table Mountain, is owned by China Minerals Mining [TSXV:CMV]. China Minerals has now hired consultants to assess the mine and they’ll be looking at our property as well.
“We’re working closely with Zimtu on the Quatre Mills Project. They’re leaders in the field. They’re going to be a shareholder, and they’ll have an NSR, so they’ll be an ongoing partner. They’re interested in the project just as much as we are.”
Gill concludes, “We can ramp up work on the project fairly quickly. The company’s valuation will follow the new 43-101 information that comes out. So the sooner we do the work, the quicker we can get the valuation of say Northern Graphite [TSXV:NGC], Focus Metals [TSXV:FMS] or Orocan [TSXV:OR], which all have much higher market caps.”
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A Paul Gill
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