May 30, 2024
Property

Apex To Purchase 100% of Lithium Brine Property In Nevada, USA


(TheNewswire)


Apex Resources Inc.


Not for
distribution to United States newswire services or for release
publication, distribution or dissemination directly, or indirectly, in
whole or in part, in or into the United States.


Vancouver,


BC – TheNewswire


January 9, 2024



Apex Resources Inc. (“Apex” or the “Company”) (TSXV:APX) is
pleased to announce


that it has entered into a
share purchase


agreement (the “SPA”) to
acquire all the shares of an arm’s length corporation holding a 100%
option over the consolidated mineral rights of the Lithium Creek
Property (the “Property”) in Nevada, USA (the “Acquisition”).


Acquisition Highlights





Consolidation of a large scale land package


,
comparable in size and geology to Albemarle’s Silver Peak Mine in
Clayton Valley, Nevada.





Location:


Situated off a major highway, in an area of
historic basin development and geology associated with lithium
mineralization.





Very
Limited Modern Exploration:


Lithium exploration
and development has not been seriously conducted in the area.





Significant
Infrastructure in Place:


The district has
substantial infrastructure including roads, railways, highways,
permits, national and local power and a skilled workforce in
neighboring towns and cities.





Accelerated
Pathway to Exploration:


Utilizing the
infrastructure and a Tier 1 exploration


team can result in accelerated results.


Mr. Jay Roberge, President Apex Resources Inc. stated,



We are very pleased to
announce t


his acquisition
which offers Apex shareholders exposure to the potential


of a low-cost lithium brine project
targeting a “Made in America” battery supply chain, ideally
located


in the prolific State
of Nevada, home to the only commercial lithium brine production in the
USA and the first Tesla Gigafactory in the USA.”


The Lithium Creek Property


The Lithium Creek Property consists of 40 claims
covering 800 acres of unpatented placer mining claims located on
public lands controlled by the Bureau of Land Management, within
Churchill County, Nevada, USA.


Surface mapping, shallow brine sampling and nearby
producing geothermal aquifers provides strong evidence


for a large, preserved and untapped lithium-boron bearing
brine body to exist proximal to two lithium-boron prospects, each
displaying brines with lithium in anomalous concentrations at shallow
depths.


Lithium Creek Location Map




https://apxresources.com/site/assets/files/5405/location-map.jpeg



Lithium bearing brines were discovered in shallow
waters (1-2 meters below surface) via sampling from a series of
historic shallow wells and hand dug pits. Laboratory analyses indicate
lithium concentrations range from 18 mg/L in shallow surficial
groundwater brines to 330 mg/L proximal to property claims. Boron is
also present at concentrations


up to 400 mg/L.
Modern exploration for lithium and boron bearing brines or clays have
not been attempted in this part of Nevada.


The prospects are in or near outflow zones from
geothermal upwelling in the vicinity of certain geothermal systems.
Geothermal fluid is understood to liberate lithium from rhyolitic
tuffs and lithium bearing clays. This upwelling appears to manifest at
the ground surface as an area of diffuse perennial discharge of brine
waters with concentrations of lithium ranging up to 20 mg/L in the
creek flowing through the southern portion of the property and is
expected to influence the potential lithium brine reservoir in the
basin.


The conceptual model for the property is similar to the
conceptual model for Clayton Valley, Nevada. Clayton Valley contains
the only commercially operating closed basin lithium brine mine
operation in


North America. The model holds that
groundwater recharge from infiltration of precipitation and underflow
through lithium rich volcanic material collects in a structurally
closed basin where it can be enriched and concentrated through
geothermal processes.


Geothermal waters in Clayton Valley historically
emanated as surficial geothermal springs with lithium concentrations
of approximately 40 mg/L prior to brine pumping. These geothermal
waters are expected to be of meteoric source with elevated
temperatures due to the high geothermal gradients in the region. The
model suggests some of these waters make their way through the basin
fill in Clayton Valley via fault planes, joints, and other natural
fractures. Basin fill materials, containing lithium in solid form, are
then leached by interaction with the local groundwater. This
interaction could release lithium that is absorbed or associated with
highly soluble phases. Lithium contained in the exchangeable layers of
clays may also be released due to the increased weathering rates of
the elevated temperature fluids and cation exchange through contact
with basin inflow water. These interactions likely have been occurring
over the timeframe of the Pliocene and are conceptual to the formation
of the lithium brines that are produced from Clayton Valley.


The conceptual model described for the lithium brine
system at Clayton Valley also fits the conceptual model for lithium
brine occurrence at the Property. Existing data strongly suggests the
project claims are located within hydraulically closed basins with
multiple structural boundaries. The claims are expected to be proximal
to discharge zones from convective upwelling of geothermal systems.
Drill results from a proximal geothermal field suggest brines
generated from these systems are in contact with smectite clays,
rhyolitic ash flows and tuffs which could provide ample source
material for soluble lithium. Figure 2 provides a conceptual model for
the Clayton Valley lithium brine deposit and the Lithium Creek brine
prospect.


Image: Conceptional Model for Basin
Brine Aquifer System




https://apxresources.com/site/assets/files/5405/lithium-storage-model.jpeg



Exploration work near the discovery area can commence
immediately with a view to begin drill testing when targets are
refined. Press releases should be anticipated regularly over the
coming weeks and months, subject to receiving the necessary regulatory
approvals.


Transaction Summary


Pursuant to the SPA


dated January
8, 2024 between


the Company and 1434001 B.C.
Ltd. (“1434001”), the Company shall acquire all of the
shares of 1434001 in exchange for a cash payment of USD $80,000.00 and
the issuance of 18,000,000 common shares of Apex (the “Payment
Shares”). The Payment Shares are subject to release restrictions
as follows: 12.5% of the Payment Shares will be released on closing of
the Acquisition and an additional 12.5% of the Payment Shares will be
released every 3 months after the closing date.  Upon completion of
issuing all Payment Shares, 1434001 will become a wholly-owned
subsidiary of the Company, which holds an exclusive option to acquire
a 100% interest in the Property (the “Option”). There will be no
finder’s fees payable with respect to the Acquisition. The terms of
the Option provide for 1434001 to acquire 100% of the Property by
completing the following:


Date for Completion


Option Payment


(USD)


Exploration & Development
Expenditures (USD)


Down Payment (non refundable)


$50,000 (Paid by 1434001)


1


st


Anniversary of Effective Date*


$100,000


$300,000


2


nd


Anniversary of Effective Date


$150,000


$500,000


3


rd


Anniversary of Effective Date


$300,000


$1,000,000


4


th


Anniversary of Effective Date


$600,000


$2,000,000


5


th


Anniversary of Effective Date


$1,200,000


$3,000,000


6


th


Anniversary of Effective Date


$Nil


$5,000,000


TOTAL


$2,400,000


$11,800,000


*The Effective Date of the Option is August
25


th


, 2023.


Financing and Issuance of Stock
Options



1.



The Company plans to complete a non-brokered private
placement financing of up to 11,430,000 units at a price of $0.07 per
unit (the “Unit”) for gross proceeds of up to $800,100 (the
“Financing”). Each Unit is comprised of one Apex common share and
one share purchase warrant (the “Warrant”). Each Warrant will be
exercisable to acquire one Apex common share at an exercise price of
$0.12. The Warrants will have an expiry date of two years from the
date of issue (the “Expiry Date”). If at any time prior to the
Expiry Date, the Company’s common shares trade at or above a price
of $0.20 per common share on the TSX Venture Exchange (the
“Exchange”) for a period of 10 consecutive trading days commencing
four months plus one day after the issue date, the Company may, at its
option, accelerate the Expiry Date by issuing a press release
announcing such acceleration (the “Acceleration Press
Release”), and, in such case, the Expiry Date shall be deemed to be
the 30th day following the date of issuance of the Acceleration Press
Release.


In addition, the Company has granted 1,500,000
incentive stock options to directors, officers, consultants and
advisors to the Company in accordance with the Company’s Stock
Option Plan. The incentive stock options are exercisable at $0.10 per
share for a period of five years.


The planned Acquisition, Financing and grant of
incentive stock options are subject to approval by the Exchange.  All
shares issued pursuant to the SPA, Financing and exercise of warrants
will be subject to a four month hold period from the closing
date.


Qualified Person and NI 43-101
Disclosure


The technical information in this news release has been
prepared in accordance with Canadian regulatory requirements as set
out in National Instrument 43-101 and reviewed and approved by
Geoffrey Baldwin, P.G. (Lic. No. 10037), a Qualified Person who is
independent of Apex and who acts as Apex’s Qualified Person. Mr.
Baldwin has sufficient experience relevant to the style of
mineralization and type of deposit under consideration and to the
activity he is undertaking to qualify as a Qualified Person as defined
in the 2014 Edition of the “CIM Definition Standards for Mineral
Resources & Mineral Reserves.”


About Apex Resources Inc.


Apex is a mineral exploration company engaged in the
business of the acquisition, exploration and development of mineral
resource properties. Apex’s common shares trade under the symbol
“APX” on the TSX Venture Exchange (TSX-V).


On Behalf of the Board of Directors of


Apex Resources Inc.


Jay Roberge


President


Ph. +1(778)895-0247 or




info@apxresources.com




website:




www.apexresources.com



Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term in defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this press release.


CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS:
This news release may contain forward-looking information within the
meaning of applicable securities laws (“forward-looking
statements”). Forward-looking statements are statements that are not
historical facts and are generally, but not always, identified by the
words “expects,” “plans,” “anticipates,” “believes,”
“intends,” “estimates,” ‘projects,” “potential” and
similar expressions, or that events or conditions “will,”
“would,” “may,” “could” or “should” occur. These
forward-looking statements are subject to a variety of risks and
uncertainties which could cause actual events or results to differ
materially from those reflected in the forward-looking statements,
including, without limitation: receipt of regulatory approvals; risks
related to fluctuations in metal prices; uncertainties related to
raising sufficient financing to fund the planned work in a timely
manner and on acceptable terms; changes in planned work resulting from
weather, logistical, technical or other factors; the possibility that
results of work will not fulfill expectations and realize the
perceived potential of the Company’s properties; risk of accidents,
equipment breakdowns and labour disputes or other unanticipated
difficulties or interruptions; the possibility of cost overruns or
unanticipated expenses in the work program; the risk of environmental
contamination or damage resulting from Apex’s operations and other
risks and uncertainties. Any forward-looking statement speaks only as
of the date it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking statement, whether as a result of new
information, future events or results or otherwise.

Copyright (c) 2024 TheNewswire – All rights reserved.



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