Coloured Ties Acquires 46 Additional Claims in Cadillac-Pontiac Lithium Belt and Amends NSR Purchase Agreement

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Vancouver, British Columbia–(Newsfile Corp. – August 19, 2022) – Coloured Ties Capital Inc. (TSXV: TIE) (OTC Pink: APEOF) (FSE: 97A0FRA) (“Coloured Ties” or the “Company”)  provides the following corporate update.

LITHIUM CLAIMS ACQUIRED IN QUEBEC LITHIUM BELT

On July 25, 2022, Coloured Ties reported that the Company has purchased 62 mineral claims, in the Cadillac-Pontiac region, about 50km southwest of Val-d’Or. The claims are immediately adjacent to claims currently held by Winsome Resources, a well-funded ASX listed Lithium exploration company and Vision Lithium, a TSX-V listed Lithium explorer. The Mazérac claims are accessible by a dense network of trails and other logging roads. The area also accessible through boat or seaplane within watershed of Decelles water reservoir, hosting the Rapid-7 hydroelectric dam of Decelles.

The general area has recently attracted many lithium prospecting and exploration companies such as Brunswick Exploration, High Tide Resources, Medaro Mining, NeoTerrex Corporation (private company), Renforth Resources, Sayona Mining, Vision Lithium, and Winsome Resources.

The Cadillac-Pontiac area has gained attention due to recent discoveries of several high-grade spodumene prospects. The latest discovery of high-grade lithium prospects by Vision Lithium Inc, spurred several other exploration and drill programs within the Cadillac area. Since December 2021, approximately 4000 new claims have been registered in the greater Mazerac area and the Pontiac Sub province region, south of Val-d’Or and Rouyn-Noranda.

The claims have been acquired from prospectors, Mr Griesbach and Junita Asihto. Mr Griesbach is a Canadian-certified geologist with more than 40 years of mineral exploration experience across Canada, Africa, China, and Southeast Asia; Mr. Junita Asihto is a Quebec-based prospector with a strong understanding of the Mazérac region. The acquisition is subject to final TSX-V exchange approval.

On August 19,2022, Coloured Ties has acquired another 46 mineral claims adjacent to the previous 62 claims from the same Vendor Group.

The current claim block provides for a sizeable lithium exploration target and the Company will seek to monetize including a joint venture or option with lithium exploration companies going forward. The current claim block is surrounded by other public companies focusing on early-stage lithium exploration and substantial exploration dollars are being expending by these companies.

The lithium claims have been acquired with 100% interest to Coloured Ties for cash consideration subject to a 2% NSR that can be reduced to 1% with $1M payout at any time in the future.

No work commitments, other than as required by Ministère de l’Énergie et des Resources naturelles to keep the claims current are required and this will allow the Company to await results from surrounding properties before mobilizing and expending resources to this project.

The Company will continue to monitor exploration activity and results obtained in adjoining projects and develop an exploration plan within the area. As per initial plan, Coloured Ties is compiling a detailed geological data of the area. The adjoining property is owned by Winsome Resources, who have provided early technical summary of the area, which will be considered in understanding of prospects of the claims acquired by the Company. Winsome News Release regarding Mazerac Area can be found here: https://wcsecure.weblink.com.au/pdf/WR1/02480499.pdf.

Map of lithium claims and surrounding projects:

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Map of lithium claims and surrounding projects

To view an enhanced version of this map, please visit:
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Investment into Icanic Brands

Coloured Ties is pleased to report that the Company has subscribed to $100,000 CAD of unsecured convertible debentures of the Icanic Brands Corporation (the “Debenture”), at a price of $1,000 per Debenture, having an aggregate principal amount set forth below (the “Principal Amount”) and bearing interest at 11.0% per annum, maturing 24 months from the date of issuance. The Principal Amount may be convertible, at the option of the holder, in whole or in part, at any time following the issue date but on or before maturity, into units of the Corporation (the “Units”) at $0.10 per Unit, all upon and subject to the terms and conditions set forth in Schedule “A” attached hereto. Each Unit consists of one common share of the Corporation (a “Share”) and one Share purchase warrant (each Share purchase warrant, a “Warrant”). Each Warrant entitles the holder to purchase one additional Share (a “Warrant Share”) at a price of $0.15 per Warrant Share for a period of 24 months from the date of the conversion.

Icanic Brands Company is a leading cannabis branded products manufacturer based in California & Nevada, the largest and most competitive cannabis markets in the world. The company’s mission is to make cannabis safe and approachable – that starts with manufacturing high-quality products delivering consistent experiences.

Some of the Company brands are detailed here. https://www.icaninc.com/our-brands-1. Coloured Ties announces that, further to its news release dated May 12, 2022 and August 11, 2022, it has entered into a amended and restated royalty purchase agreement (the “Amended and Restated Agreement”) with BullRun Capital Inc. (“BullRun”) pursuant to which it will acquire (the “Acquisition”) a one percent (1%) net smelter return royalty (the “NSR Royalty”) on the Arnett Creek Gold Project currently being developed by Revival Gold Inc. (“Revival”). The Amended and Restated Agreement replaces the previously announced royalty purchase agreement.

As consideration for the NSR Royalty the Company will pay BullRun cash consideration in an amount equal to the lower of (i) the amount of a formal valuation prepared by an independent valuator of the Royalty, and (ii) USD$2,500,000. The Company has formally engaged an independent valuator and anticipates receiving a formal valuation on the NSR Royalty by August 31, 2022.

The NSR Royalty is subject to a right of first refusal (the “ROFR”) held by a wholly-owned subsidiary of Revival which has sixty (60) days to elect by written notice to BullRun to purchase the NSR Royalty on the same terms and conditions as set forth in the Amended and Restated Agreement. In the event Revival does not exercise the ROFR, BullRun is free to sell the NSR Royalty in accordance with the terms and conditions specified in the Amended and Restated Agreement.

Kal Malhi, a director and the Chief Executive Officer of the Company, is the sole shareholder and director of BullRun. The Acquisition is therefore considered a “related party transaction” for the purposes of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101“) and TSX Venture Exchange (“TSXV“) Policy 5.9. The Acquisition is exempt from the formal valuation requirement of MI 61-101 pursuant to section 5.5(b) as the Company’s common shares are not listed on a “Specified Market” as set forth in MI 61-101. However, as the value of the consideration to be received by BullRun exceeds 25% of the Company’s market capitalization, disinterested shareholder approval will be required for the Acquisition.

Accordingly, the Company will seek the approval of the Acquisition by a majority of the votes cast by disinterested shareholders at the Company’s annual general and special meeting to be held on September 23, 2022 (the “AGSM“). Additional details of the Acquisition, as required by MI 61-101, will be described in the Company’s information circular to be filed and mailed to shareholders in connection with the AGSM.

Patriot Battery Metals Inc.

Coloured Ties has acquired a total of 1,708,900 common shares of Patriot Battery Metals (PMET) via purchases thru the Canadian Securities Exchange from December to July 15, 2022, at an average cost of $1.40 per share.

Patriot Battery Metals has achieved early drilling success at their Corvette Lithium property in Quebec and the company’s stock price has seen appreciation to a high $4.88 as of July 18,2022.

For more information about PMET, please visit: www.patriotbatterymetals.com

For further information please contact:

Kal Malhi
Chief Executive Officer
[email protected]

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.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company.

The forward-looking statements contained in this news release present the expectations of the Company as of the date hereof and, accordingly, is subject to change after such date. Readers are cautioned not to place undue reliance on forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/134377