Stelmine Canada Ltd.
TSX VENTURE : STH

Stelmine Canada Ltd.

February 03, 2010 16:00 ET

Stelmine to Acquire Properties in Direct Vicinity of Rare Metals and High Grade Lithium Discovery Done by First Gold Ressources

MONTREAL, QUEBEC--(Marketwire - Feb. 3, 2010) - Stelmine Canada Ltd. ("Stelmine"), (TSX VENTURE:STH) today announced the closing of an acquisition agreement under which the company can acquire up to a 100% interest in 9 mining claims, covering an area of 477 hectares in Eastmain Township on map NTSC 33C01 on a contiguous block of land in direct vicinity of the recent lithium discovery announced by First Gold Exploration on press releases dated January 21, 2010.

The company has now 7,952 hectares of land with high Lithium and REE potential.

First Gold announced on Jan. 21, 2010, the discovery of rare metals on its Pivert-Rose property in Quebec, along with up to 4.6 per cent Li2O. According to its news release, the results for these two samples show that a zone very rich in lithium and containing significant quantities of rare metals (rubidium, tantalum, beryllium, niobium and gallium) has been discovered on the company's property. This discovery is in a zone more than 2.4 kilometres northeast of the Rose showing and 2.5 km south of the Pivert showing.

First Gold also announced on January 25, 2010, the drill results on its hole LR-09-02 with 2,922 gram per ton of Rubidium over 6.7 meters.

This is a highly strategic acquisition for the company, which is part of a continuous pattern of rare earth acquisitions.

Stelmine can acquire an initial 75% property interest, the Company must pay to arm's length parties a total of $25 000 and issue a total of 250 000 shares at the signing of the Final Agreement and upon regulatory approval and an additional $25 000 and 250 000 shares at the transfert of the claims, in addition to completing $100 000 in exploration and/or development work on or before the First Anniversary of the signing of the Final Agreement. On the first Anniversary date Stelmine will have an Option to acquire an additional 25% interest in the property by paying $ 30 000 and issuing 500 000 shares of the company. The vendor will retain a 2% Net Smelter Returns Royalty of which 1% could be bought back by Stelmine for $1 million

On November 23, 2009, the company already announced the acquisition of rare earth properties in the Kipawa alkaline region, which covers an area of 1,775 hectares where showings were announced of 11.3% REE by Matamec Resources and 4.4 % REE by Fieldex Exploration.

On December 3, 2009, the company announced the closing of an acquisition agreement, under which the company can acquire up to a 100% interest in 6 mining claims covering an area of 360 hectares, divided into 3 blocks, located in the Wakefield Alkaline Complex north of Gatineau, Quebec, where the compilation of historical work has shown three major rare earth anomalies with values ranging up to more than 4% REE.

On December 15, 2009, the company announced the closing of an acquisition agreement, under which the company can acquire up to a 100% interest in 80 mining claims covering an area of 4,800 hectares divided into 5 blocks, located in the Wakefield Alkaline Complex north of Gatineau, Quebec.

Michel Lemay President of Stelmine stated: This new acquisition is part of Stelmine's strategy of aggressively acquiring properties with high rare earth potential in Quebec in different geological environments well known for their potential for this type of mineralization to become a significant lithium and rare earth player. Combined with our others recently acquired properties, Stelmine in very well positioned to capitalize on this market. To date, the company holds rare earth properties in five regions of the Province of Quebec for a total of 7,952 hectares.

Stelmine Canada Ltd. is a junior exploration company listed on the TSX Venture Exchange under the symbol STH with 16,8 million shares issued.

The TSX Venture Exchange does not accept responsibility for the relevance or accuracy of this press release.

Contact Information

  • Stelmine Canada Ltd.
    Michel Lemay
    President and Chief Executive Officer
    514-866-8209