Elcora initiates Manganese Mining Plan Preparation

Rhea-AI Summary

Elcora Advanced Materials Corp. has announced the rescind of its Option Agreement with Gold Lion to purchase up to 50% interest in the Atlas Fox Deposit manganese concession in Morocco. This decision allows Elcora to retain 100% ownership of the mineral rights, following positive lab test results for manganese ore. Heavy machinery is being transported to the site to expedite production, with an aim to commence operations by the end of 2022. Elcora is also returning 5 million common shares and a cash payment of $75,000 to Gold Lion as part of this agreement.

Positive

• Retained 100% ownership of the Atlas Fox Deposit, enhancing shareholder value.
• Positive lab test results for manganese ore indicate potential for profitable mining.
• Heavy machinery is already being transported to the site to expedite manganese production.

Negative

• None.

Rescinds Gold Lion Option Agreement

HALIFAX, Nova Scotia, Nov. 15, 2022 (GLOBE NEWSWIRE) -- ELCORA ADVANCED MATERIALS CORP. (TSX.V:ERA | Frankfurt:ELM | OTCQB – ECORF), (the "Company" or "Elcora"), is pleased to announce that following the very positive Manganese Ore lab test results previously announced, it is preparing a comprehensive mining plan for its Ermazon Manganese concession (16 km²) named “Atlas Fox Deposit” in Morocco.

The plan will be based on detailed maps of the former French Mine located on its concession allowing for faster and more efficient production. Heavy machinery and production equipment are already being shipped on-site. The Atlas Fox Deposit had been mined until the mid-fifties when the French rule in Morocco came to an end leaving on-site about 40 extracted Manganese ore piles and numerous surface veins and pits.

At the same time and in order to maximise respective shareholders value, Elcora and Gold Lion have mutually agreed to rescind the Option Agreement to purchase up to 50% interest in the Manganese concession therefore allowing Elcora to retain 100% ownership of its valued Manganese concession while permitting Gold Lion to focus on opportunities more inline with its current business model.

As a result, Elcora will return the 5,000,000 common shares of Gold Lion, issued at deemed price of $0.05 per share, and the cash payment of $75,000 for the initial 25% interest in the license. Neither party will be required to pay the other a termination fee as a result of the rescind of the option agreement.

Troy Grant, Elcora’s CEO commented, “Given the latest Manganese Ore test results, it was important for us to retain 100% of the Atlas Lion Deposit and build additional shareholders’ value. Our focus is now to start producing ore as soon as possible and the Mining Plan along with bringing the necessary equipment are important steps towards it. Our local Moroccan team is diligently working on getting the last Government requirements with the objective to start production before the end of 2022.”

About Elcora Advanced Materials Corp.

Elcora was founded in 2011 and has been structured to become a vertically integrated battery material company. Elcora can process, refine, and produce battery related minerals and metals. As part of the vertical integration strategy Elcora has developed a cost-effective process to purify high-quality battery metals and minerals that are commercially scalable. This combination means that Elcora has the tools and resources for vertical integration of the battery minerals and metals industry.

For further information please visit the company's website at:

http://www.elcoracorp.com 

For further information please contact: Troy Grant, Director, President & CEO, Elcora Advanced Materials Corp., T: +1 902 802-8847

Qualifying Statements: Klaus Leiders P. Eng., a qualified person as defined by National Instrument 43-101, approves the technical information contained in this news release.

CAUTIONARY STATEMENT:

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock Exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

This News Release includes certain “forward-looking statements”. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Elcora, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Elcora’s expectations are exploration risks detailed herein and from time to time in the filings made by Elcora with securities regulators.

Investors are cautioned that, except as disclosed in the filing statement prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon.

FAQ

What did Elcora Advanced Materials announce on November 15, 2022?

Elcora announced the rescind of its Option Agreement with Gold Lion, allowing it to retain 100% ownership of the Atlas Fox manganese concession.

What is the significance of the Atlas Fox Deposit for Elcora?

The Atlas Fox Deposit is significant for Elcora as it plans to begin production of manganese ore, bolstered by recent positive lab test results.

What financial implications arise from the rescinded agreement with Gold Lion?

Elcora returned 5 million common shares and a cash payment of $75,000 to Gold Lion, but retains full ownership, potentially increasing shareholder value.

When does Elcora plan to start manganese production?

Elcora aims to start manganese production by the end of 2022.

What is the current status of the Atlas Fox Deposit?

The Atlas Fox Deposit is being prepared for production with heavy machinery being shipped to the site.