Vancouver, British Columbia--(Newsfile Corp. - August 3, 2017) - Fairmont Resources Inc. (TSXV: FMR) ("Fairmont" or the "Company") announces that no superior offers have been received for the Rome Lithium Property, and as a result the Company has agreed to move forward with the previously announced transaction (Press Release dated June 29, 2017) with Jourdan Resources Inc. ("Jourdan") Upon TSX approval, Fairmont will receive $25,000 cash ($25,000 was received as part of a Right of First Refusal associated with signing the Letter of Intent), 1,500,000 shares of Jourdan, and a 2% NSR on the Rome property.
Fairmont has received notice that its appeal of the Spanish Court's termination of Fairmont's offer to acquire certain assets of Granitos de Badajoz ("Grabasa") has been denied. On July 7, 2017, the Spanish Court declined Fairmont's appeal and upheld the decision to terminate Fairmont's bid for the Grabasa assets. Fairmont is currently assessing its options. Fairmont is still free to bid for the asset in an open competition, and continues to work with potential funding partners.
Fairmont has also made a decision not to appeal the Spanish Court's Decision with respect to Eureka Trading's claim for a success fee relating to the failed attempt to purchase the Grabasa assets. The Company has determined that launching a proper appeal in Spain, which could continue for years, would cost hundreds of thousands of dollars, and that the company's resources are best directed elsewhere. The Company is working on settlement options with respect to this issue.
Other Canadian Projects
The past producing Lac Brule Quartz Mine that Fairmont Resources completely surrounds was recently sold by the previous owner and dewatering of the open pit has commenced. It is unclear at this time if the new owner is looking to produce quartz or aggregate. Additional information will be provided on the Company's website as it becomes available.
The sampling for PCC from the Baie Comeau Quartzite property has been collected and arrangements to ship the sample to Germany are underway.
Several interested parties have approached Fairmont with respect to the acquisition of both the Forestville and Baie Comeau Quartzite properties, but no decision has been made with respect to the offers. Fairmont would consider JV partners to help accelerate the development of these projects, and interested parties are encouraged to contact the Company.
With respect to the Buttercup property, which is under binding letter agreement with Prophecy Development Corp. (announced on July 21, 2017), developments towards extracting aggregate are moving forward and Fairmont and its consultants in Quebec are assisting Prophecy in contacting local drilling, blasting, crushing and hauling contractors who had previously been working with Fairmont to develop the project. Fairmont is very encouraged by the dedication that Prophecy's management team is giving to the project, and the Company expects aggregate extraction equipment to be on site in August 2017. The closing of the transaction is subject to Prophecy being satisfied with the results of its due diligence that may include bulk sampling.
About Fairmont Resources Inc.
Fairmont Resources Inc. is a rapidly growing industrial mineral company trading on the Toronto Venture Exchange symbol FMR.
Fairmont's Quebec properties cover numerous occurrences of high-grade titaniferous magnetite with vanadium, with the Buttercup property having a permit to quarry dense aggregate. Where these occurrences have been tested they have display exceptional uniformity with respect to grade. Fairmont also controls three quartz/quartzite properties, with the Forestville property having independent end user testing confirming the suitability of quartzite from Forestville for ferro silicon production.
On behalf of the Board of Directors,
For further information please contact:
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Fairmont cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Fairmont's control. Such factors include, among other things: risks and uncertainties relating to Fairmont's ability to complete the proposed private placement financing, limited operating history and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, Fairmont undertakes no obligation to publicly update or revise forward-looking information.
NEITHER 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.