Far Resources (CSE:FAT) has entered an option agreement for the Zoro 1 Claim in the Snow Lake Area in Manitoba. The claim covers a number of known lithium pegmatite occurences.

As quoted in the press release:

The Zoro I Claim

The Zoro I claim covers approximately 52 hectares near Wekusko Lake in western Manitoba. The Zoro I Claim covers a number of known lithium pegmatite occurrences, one of which contains an historic “reserve” based on 1956 drilling on the “Principal Dyke” of 1.727 million tonnes grading 0.94% Li2O.

The mineral reserve cited above is presented as an historical estimate and uses historical terminology which does not conform to current standards, and as such should not be relied upon. Although the historical estimates are believed to be based on reasonable assumptions, they were calculated prior to the implementation of National Instrument 43-101. These historical estimates do not meet current standards as defined under sections 1.2 and 1.3 of NI 43-10 and therefore should not be relied upon.

Zoro Option Agreement

The Company has entered into the Agreement with Top Notch Marketing Ltd., R. Ross Blusson and Double-U-Em Investments Ltd. (collectively, the “Optionors“) effective as of the date of this news release. Under the terms of the Agreement the Company can acquire a 100% interest in and to the Zoro I Claim (the “Option“) upon meeting the following requirements:

1. upon the execution of the Agreement, Far Resources must pay each of the Optionors $16,666.66 in cash and issue to each of the Optionors 333,333 Common shares;

2. on the first anniversary of the date of the Agreement, Far Resources must provide the Optionors with aggregate consideration of $300,000 which, at the election of the Optionors, can be satisfied by either (i) paying each of the Optionors $50,000 in cash and issuing each of the Optionors that number of Shares worth $50,000 at the time of issuance, based on the Average Price (defined below); or (ii) issuing each of the Optionors that number of Shares worth $100,000 at the time of issuance, based on the Average Price; and

3. on the second anniversary of the date of the Agreement, providing the Optionors with aggregate consideration of $600,000 which, at the election of the Optionors, can be satisfied by either (i) paying each of the Optionors $100,000 in cash and issuing each of the Optionors that number of Shares worth $100,000 at the time of issuance, based on the Average Price; or (ii) issuing each of the Optionors that number of Shares worth $200,000 at the time of issuance, based on the Average Price.

Click here for the full press release.

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