VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 17, 2014) - Zone Resources Inc. (TSX VENTURE:ZNR) (FRANKFURT:7ZR) (the "Company') is pleased to announce that it has entered into an option agreement (the "Option Agreement") dated March 17th, 2014 (the "Effective Date") whereby Zone may earn a 100% interest in the 233 Hectare "La Corne Lithium Property" (the "Property").
The Property is located in La Corne county approximately 60 kilometres north of the renowned mining region of Val D'or, Québec. The claims are adjacent to RB Energy's Quebec Lithium project, which completed the construction of their mine and processing plant in 2013 and is currently in the latter stages of commissioning before it enters the first stage of production. RB Energy's hard-rock lithium project has a planned production rate of 20,000 tonnes per annum and a proven reserve of over 6 million tonnes grading 0.92% Li2O.
About The Lithium Market
While much of the production of lithium in the past went into the processing of silica, the advent of modern electronics and specifically of lithium-ion battery technology has transformed the metal into one of the most sought after elements in the development of the technology industry. The glamour of products like laptops, tablets and cell phones has vaulted the production of lithium to the forefront of the mineral exploration industry - especially in the eyes of younger consumers. Lithium-ion batteries are not limited to use in technology however, as products such as portable drills and other cordless tools have also begun to utilize the technology to their advantage.
The emergence of power grid storage for technologies such as wind farms, hydro-electric, solar power and other mass power storage facilities, will also lead to an increase in Lithium demand. Excess power can be developed at these facilities and stored in massive lithium-ion batteries to be sold into the grid as demand increases or if there is an unforeseen disruption in production.
With the recent announcement from Tesla about the development of a "gigafactory" for power storage, the power-grid industry has received a major boost from one of the biggest players in the electromobilty industry. According to Adam Jones of Morgan Stanley, "by lowering the cost of energy-storage with its lithium-ion batteries, Tesla could accelerate the disruption of the electric utility business as it doubles its share of the global car market to about 1 percent." As consumers become less reliant on the local power supply companies, the demand for lithium-ion battery storage will increase and that will benefit not only the development of the electric car but also the whole of the battery industry.
President Charles Desjardins commented: "As a result of the increase in demand for lithium, management views this as a great opportunity for the Company and its shareholders."
Terms of the Agreement
Under terms of the Option Agreement, subject to TSX Venture Exchange (the "Exchange") approval, the Company has the option to earn a 100% interest in the Property by making $60,000 in cash payments to the Vendor and issuing 1,900,000 common shares over the next three years as follows:
|On the Effective Date
|On Exchange approval of the Option Agreement
||500,000 common shares
|On or before the date which is One Year from Exchange Approval
||600,000 common shares
|On or before the date which is Two years from Exchange Approval
||800,000 common shares
||1,900,000 common shares
The Vendor will retain a 2% Net Smelter Royalty on the property upon completion of the terms of the Option Agreement.
About Zone Resources Inc.
Zone Resources Inc. is a Canadian mineral exploration and development company with projects in Canada.
Neither the 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 release.
This report contains forward looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.