Fairmont cheers Chinese firm’s purchase of RB Energy

Fairmont (FMR.V) cheers Chinese firm’s purchase of RB Energy

– Momentum Public Relations – June 22, 2016


Fairmont Resources Inc. (TSX VENTURE:FMR) (“Fairmont”) is encouraged by the court approval yesterday of the asset purchase agreement of RB Energy Inc. by Jilin Jien Nickel Industry Co.

RB Energy, who once claimed its Quebec mine would produce “the highest-quality lithium carbonate in the world,” was forced to halt operations in October, 2014, after failing to complete a much-needed financing. Subsequent attempts to raise financing proved to be very difficult due to market conditions at the time for Canadian resource companies. Specifically, Investment Quebec and/or KSV Advisory held discussions with 26 parties regarding the potential sale of RB Energy.

Jilin acquired the Quebec lithium mine for an undisclosed amount, but it is estimated that approximately $150-million to $200-million in additional capital will be required to take the lithium project to its production stage.

Michael Dehn, president and chief executive officer of Fairmont Resources, stated the following regarding the significance of this deal for both the lithium industry and Fairmont’s Rome lithium property: “Fairmont is very encouraged by the acquisition of the past-producing Quebec lithium mine and mill by Jilin Jien Nickel, as it provides third party validation of Fairmont’s decision last month to option of the Rome lithium property, which borders the property acquired by Jilin Jien. Rome added shareholder value at the time of its option, and we believe this acquisition of the bordering property will add further near- and long-term value.”

Proximity of RB Energy mine to Fairmont’s Rome lithium property

The Rome lithium property is located approximately 60 kilometres north of Val d’Or, Que. The property is contiguous to the north and south of RB Energy’s Quebec lithium mine, with published measured and indicated resources (at a cut-off of 0.6 per cent lithium oxide) of 41,556,000 tonnes at 1.09 per cent lithium oxide, and an inferred resource of (at a cut-off of 0.6 per cent lithium oxide) of 17,766,000 million tonnes at 1.1 per cent lithium oxide (RB Energy press release of Oct. 11, 2012).

The property is also contiguous to Jourdan Resources’ Vallee lithium property that drilled more than 4,000 metres of core in 2011, and intersected more 100 pegmatite and aplite dikes. Jourdan Resources intersected values of up to 1.187 per cent lithium oxide over 5.5 metres (Jourdan Resources press release of Oct. 24, 2012).

For additional information on the Rome lithium property, please see the press release dated May 26, 2016, on the company’s website.

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