MONTREAL – MINING – Brunswick Exploration Inc. (TSX-V: BRW, OTCQB: BRWXF; “BRW” or the “Company”) is pleased to announce that it has started prospecting campaigns in Ontario and Saskatchewan with helicopter-supported prospecting in Manitoba and Quebec to begin in early June. Additionally, BRW has staked additional claims in Ontario, Manitoba and Saskatchewan targeting newly identified, untested S-type pegmatites.
Mr. Killian Charles, President and CEO of BRW, commented: “We are very excited to start one of the largest grassroot lithium exploration initiatives in North America. Over the last 18 months, we have diligently built our hard-rock portfolio focused on both poorly explored lithium-bearing pegmatites and untested, prospective pegmatite targets in favorable jurisdictions. We have now secured over 650 S-type pegmatites across all of Canada that have never been tested for lithium, in addition to nearly a dozen spodumene-bearing pegmatites.
“Concurrent with our pan-Canadian prospecting initiative, we are preparing our next drill campaign at Hanson Lake, Saskatchewan, which is anticipated to start in Q3. Furthermore, we continue to advance drilling at Hearst with preliminary results expected in early June. We are very optimistic that Canada hosts multiple world-class lithium deposits that are yet to be discovered and are confident that BRW can bring some of these deposits to fruition.”
Quebec: Eeyou Istchee-James Bay
Starting in June, BRW will begin a major helicopter-supported prospecting campaign from two central camps: the Wabamisk camp, near the Anatacau and Anatacau West projects, and the PLEX camp, located near the PLEX and Mythril projects. A smaller fly camp, will also be set-up near the Mirage project, located further east from the PLEX project. The Company’s portfolio in the entire Eeyou Istchee-James Bay region includes over 250 untested S-type pegmatites measuring a minimum strike length of 500 metres.
- Anatacau: BRW will follow up on the newly intercepted spodumene bearing pegmatites from the recent drill program at Anatacau West. The pegmatites are hosted in an east-west deformation corridor and the entire trend is highly prospective. Further east, on the Main Anatacau claim block, the Company has already identified several spodumene showings which will be targeted for extensive prospecting.
- PLEX and Mythril: BRW will prioritize prospecting pegmatite targets identified on the PLEX and Mythril projects. On Mythril, several untested pegmatite outcrops lie near the shared claim border with Patriot Battery Metals and are located less than two kilometres north of the CV8 spodumene showing. Prospecting will also be launched on the larger PLEX project, with over 120 untested pegmatite outcrops have been identified through compilation. All targets are hosted within the La Grande Shear Zone, which is also host to all known spodumene-bearing pegmatites on Patriot Battery Metals’ land package.
- Mirage: Prospecting will initially focus on confirming the occurrence of several large, angular spodumene-bearing boulders reported from the property. The shape and size of the boulders indicate a proximal source and multiple prospective pegmatite outcrops have been identified from satellite imagery up-ice from the boulders. BRW will also concentrate its efforts on multiple historical lithogeochemical anomalies that were identified in altered basalts (over 100 ppm lithium; Quebec government SIGEOM database). These anomalies suggest local alteration from an influx of lithium-bearing fluids
Following the prospecting campaigns, results may warrant drilling and stripping programs in H2/2023.
Saskatchewan
Crews are currently prospecting at the Hanson Lake pegmatite field to prepare for a drill program in Q3. The Hanson Lake pegmatite field, located next to existing paved road infrastructure, is an eight kilometer by three kilometer corridor that is part of the larger Jan Lake granite-pegmatite suite where the company has secured over 55 large-scale pegmatites. Following prospecting at Hanson Lake, crews will continue truck and boat-supported prospecting on other BRW claim holdings. Helicopter-supported prospecting will initially begin in the Reindeer Lake area in early Q3.
The Company has also staked an additional 48,000 hectares within the Trans-Hudson and Lake Athabasca Projects. These claims were staked based on excellent outcrop exposure, preferred geological environments, geochemistry and historically mapped and interpreted pegmatites. This additional ground includes over 45 pegmatites between 500 and 11,500 meters that have not been assessed for lithium. In Saskatchewan alone, the company has now secured over 225 S-type pegmatites that have a minimum strike length of 500 meters.
Ontario
The company has staked over 10,900 hectares with favorable outcrop exposure and forestry road access roughly 70 kilometers north of Kenora, known as the Campfire project. This package was compiled based on preferred geological environments and historical lake sediment data. The Campfire Project is within the English River Belt which hosts the Tanco mine (Canada’s only producing lithium mine) and is roughly 25 kilometers east of the Separation Rapids lithium deposit.
Prospecting in Ontario will begin in Hearst in May before moving to the Campfire Project following the completion of prospecting in Manitoba and Saskatchewan. As new forestry roads and logged areas are planned for 2023, BRW expects to benefit from greater access and outcrop exposure throughout the Hearst Project as the project remains poorly explored.
Manitoba
BRW will begin prospecting at the Lynn Lake project in early June. The entire Lynn Lake region has never been explored for lithium. With excellent outcrop exposure, helicopter-supported prospecting is expected to be very efficient.
The company has also staked an additional 38,000 hectares throughout the Trans-Hudson belt of Manitoba based on geological environments, historical geochemistry as well as mapped and interpreted pegmatites. Of these newly acquired pegmatites, twelve are between 500 and 6,000 metres of exposed strike length.
Corporate Update
The Company has entered into a debt settlement agreement with Robert Wares, director and officer of the Company (the “Debt Settlement”), to settle a $333,333 outstanding payment due in November 2023 on a convertible debenture issued in 2018 and which matured in September 2021, by issuing 444,444 common shares of BRW at a deemed issue price of $0.75 per Common Share. This Debt Settlement will be executed in shares in order to preserve capital available to the Company.
The issuance of the common shares pursuant to the Debt Settlement is subject to approval from the TSX Venture Exchange (the “TSX-V”). The common shares issued pursuant to the Debt Settlement are subject to a statutory hold period of four months and one day from the date of issuance of the Common Shares in accordance with applicable securities laws.
After the Debt Settlement, Robert Wares will own 44,732,016 common shares and 1,550,000 options of the Corporation, representing 23.9% of the outstanding common shares of the Company on an undiluted basis and 24.6% of the outstanding common shares on a partially diluted basis, assuming full exercise of the options.
The Debt Settlement will constitute a “related party transaction” within the meaning of the TSX-V Policy 5.9 (the “Policy”) and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) adopted in the Policy. The Corporation intends to rely on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value (as determined under MI 61-101) of the Debt Settlement does not exceed 25% of the Corporation’s market capitalization (as determined under MI 61-101).
