December 20, 2022, Silk Road Energy Inc. (TSXV: SLK) (Record Gold) is pleased to announce a non-brokered private placement of flow-through units of the company at a price of $0.06 per unit for gross proceeds of up to $100,000. Each flow-through Unit will consist of one common share of the company and one common share purchase warrant. Each warrant will entitle the holder to acquire a common share at $0.12 per common share for twenty-four (24) months following the issuance of warrants.
The flow-through common shares of the company that will qualify as a “flow-through share” within the meaning of subsection 66(15) of the Income Tax Act (Canada).
The proceeds from the issue and sale of the flow-through shares will be used to incur Canadian Exploration Expenses and “flow-through mining expenditures” as defined in subsection 127(9) of the Tax Act on the company’s mineral exploration properties, which will be incurred on or before December 31, 2023.
As reported in yesterday’s new release, Silk Road has entered into an option agreement to acquire a 100% interest in the Doran Lithium Property.
The Doran Lithium property is located 60 kilometres east of Green Technology Metals Inc.’s Root Lake Lithium Project that is currently being developed to production. The Doran Lithium Property sits along the same terrane boundary fault structure as the Root Lake Lithium discovery.
The area surrounding the Doran property was reviewed by the Ontario Geological Survey for potentially hosting significant lithium deposits. They undertook geochemical sampling of lake- bottom sediments and the mapping of intrusive complexes and pegmatite dikes that could produce economic lithium deposits.
The Doran property was found to contain elevated levels of lithium oxide in lake-bottom sediment samples. This is a positive criterion for the presence of lithium mineralization.
As well, satellite photo images of Doran property show both white linear and irregular spotted clusters of outcrops, which may be interpreted as pegmatite, a host rock for lithium mineralization.
The Doran Lithium property consists of 3,474 hectares in close proximity to the English River- Uchi terrane boundary and is also adjacent to second order faults. The presence of these structural and tectonic elements is significant since, to date, most significant lithium discoveries occur adjacent to terrane boundaries and second order fault structures.
This offering is conditional upon receipt of required regulatory approvals, including the approval of the TSX Venture Exchange. The securities issued pursuant to the offering, as well as any compensation options issued to finders, will be subject to four months and a day statutory hold period in accordance with applicable Canadian securities laws.