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REGINA, SASKATCHEWAN / ACCESSWIRE / August 31, 2021 / ROK Resources Inc. ("ROK" or the "Company") (TSXV:ROK) is pleased to announce that it has entered into an Exploration Management Agreement with Hub City Minerals Corp. ("Hub City Minerals") dated July 23, 2021 (the "Agreement") wherein ROK has been issued, for nil consideration, a twenty-five (25%) percent carried interest (the "Carried Interest") in a private entity, Hub City Lithium Corp. ("Hub City Lithium"). The remaining seventy-five (75%) percent of Hub City is owned by Hub City Minerals. Hub City Lithium currently holds 119,739 acres (48,457 hectares) of Subsurface Crown Mineral Dispositions in Saskatchewan (the "Property"), and wishes to explore potential lithium resource prospects with the Property.
Under the terms of the Agreement, Hub City Lithium's operations will be managed by a management committee consisting of four members, three of whom will be appointed by Hub City Minerals and one of whom will be appointed by the Company. Subject to direction from the management committee, the Company will manage and administer the following objectives in relation to the Property ("Objectives"):
- Identify & acquire additional strategic lithium land prospects;
- Complete multi-layer perforation and flow testing of a wellbore;
- Obtain samples and conduct test for lithium concentrations;
- Identify a location for a pilot project;
- Identify a strategic partner to negotiate a lithium extraction technology pilot project;
- Obtain a third party NI 43-101 resource report; and
- Facilitate the completion of a preliminary economic assessment.
The Objectives will be wholly funded by Hub City Minerals, up to a total amount of $1,500,000 (the "Capital Allocation"). Any costs that exceed the Capital Allocation will then be proportionally financed by each of ROK and Hub City Minerals based on their proportionate ownership of Hub City Lithium. Alternatively, either ROK or Hub City Minerals may elect to proportionally reduce or increase their ownership in Hub City Lithium for any portion of additional costs above the Capital Allocation. The Agreement has an indefinite term, but may be terminated by ROK on three months' notice to Hub City Minerals, and ROK may be removed as Manager, without affecting its ownership interest in Hub City Lithium, in certain circumstances including if ROK fails to meet its obligations under the Agreement.
Jared Lukomski, Senior Vice President Land and Business Development, stated, "ROK recognizes and values the evolving energy landscape and is excited about its partnership with Hub City Lithium. By capturing a vast amount of prospective lithium lands, Hub City is well positioned to benefit from the emerging lithium extraction industry in Saskatchewan. ROK looks forward to sharing the results of Hub City's operations with its shareholders."
About ROK
ROK is primarily engaged in exploring for petroleum and natural gas development activities in Saskatchewan. Its head office is located in Regina, Saskatchewan, Canada and ROK's common shares are traded on the TSX Venture Exchange under the trading symbol "ROK."
For further information, please contact:
Cameron Taylor, Chairman and CEO
Lynn Chapman, CFO
Phone: (306) 522-0011
Email: info@rokresources.ca
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to the Company's objectives, goals or future plans with respect to pursuing the Objectives and the expectations regarding the expected results thereof. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in ROK's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility of the adequacy or accuracy of this release.
SOURCE: ROK Resources Inc.
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