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St-Georges Partners with Active Growth to Explore Lepidolite & Muscovite Pegmatites – Jointly Acquire 9 Past Producing Projects $SX.ca

Posted by AGORACOM-JC at 2:19 PM on Thursday, April 28th, 2016

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  • Announced that it has entered into a definitive agreement with Active Growth Capital (TSX-V: ACK) in order to advance its muscovite research initiative and jointly acquire 9 past producing projects in the province of Quebec
  • Partnership will enable St-Georges to further its knowledge of extraction and beneficiation alternative processes for a range of minerals commonly founded in pegmatite

Montreal, Quebec / April 28, 2016 – St-Georges Platinum and Base Metals Ltd. (OTC: SXOOF) (CSE: SX) (FSE: 85G1) is pleased to announce that it has entered into a definitive agreement with Active Growth Capital (TSX-V: ACK) in order to advance its muscovite research initiative and jointly acquire 9 past producing projects in the province of Quebec.

This partnership will enable St-Georges to further its knowledge of extraction and beneficiation alternative processes for a range of minerals commonly founded in pegmatite. The research initiative will focus on the treatment of Lepidolite and Muscovite. St-Georges also plans to collaborate with third-party technology developers to test the usage of plasma technology to improve green-tech grade muscovite beneficiation.

The research initiative will focus on the following areas:

-Muscovite beneficiation, in partnership with plasma technology developers;

-Alternative lithium source extraction technology development;

-Benchmark for acid drainage technology test deployment;

St-Georges is transitioning its focus from mining exploration to mining technology, with the goal of creating a basket of patented technologies that will position the Company as a provider of environmentally-friendly processing solutions, as well as tailing reclamation solutions. The goal is to have market-ready technologies in the very near future.

JOINT ACQUISITION OF MUSCOVITE & LEPIDOLITE PAST PRODUCING MINES

The terms

In collaboration with Active Growth (TSX-V: ACK), St-Georges has received a 50% interest in 9 past producing mines, at no cost to its shareholders from two of its directors, being Mr. Frank Dumas, its president and Mr. Mark Billings, its Chairman. These directors sold 50% of the projects to Active Growth Capital (TSX-V: ACK) in return for 900,000 common shares of ACK and an NSR on the projects and surrendered the remaining 50% equity in the project to St-Georges.

Conditional to the closing of a financing by ACK, St-Georges will receive 600,000 shares of Active Growth Capital at closing of the transaction, as a payment for a 24-month right of first refusal to access the resulting technologies of the current Muscovite/Pegmatite R&D initiative. St-Georges will enter into a voluntary 48-month escrow agreement for these shares.

ACK will have the option to acquire a 25% equity stake in the intellectual property created and owned by St-Georges with this R&D initiative in relation with Muscovite. ACK will have the option to acquire an additional 25% total ownership of the exploration projects by spending $200,000 of geological exploration work over the next 24 months, thereby reducing St-Georges’ equity share of the projects to 25%. A Joint Venture will be created afterward to manage the projects.

The projects

The companies’ acquisitions consist of four blocks of projects.

-The 4 blocks cover 5435 hectares and equal 95 claims;

-At least 10 pegmatites were partially mined for muscovite between 1900 and 1940;

-The largest reported pegmatite is 1.6 km by 120 meters on a surface outcrop;

-The “Mine du Lac a la Mine” and << Mine du Lac Jacques >> Project: constituted of 2 past producing claims and 9 additional claims acquired by staking. The main minerals identified by the Quebec Ministry of Natural Resources on the projects that are about 1 kilometer apart are Mica (Muscovite and Lepidolite), Apatite, Garnet and Tourmaline. Limited production was conducted in open pits. The mines are about 12 km north-east of the village of Tadoussac on the Quebec North-Shore.

-The “Mine Imbeault”, “Mine du Lac Castor”, “Mine du Ruisseau” and “Mine du Lac Sirois” Projects: This block comprises 3 past producing claims and 26 additional claims acquired by staking. The projects along the same 3km pegmatite trend and the central point of these projects lie 16km north-west of the Quebec North-Shore’s village of Les Escoumins. Minerals identified include Mica (Muscovite and Lepidolite) Quartz, Feldspath, Garnet (Beryllium) Tourmaline and Apatite. The Mine Castor section has a 1.6 km by 120 meters pegmatite outcrop on a North-West orientation. There are historical grades of 10-30% pink-ruby micas in multiple historical drilling intersections of 5 to 15 meters. These results are historical in nature and cannot be rely upon and are only mentioned has a reference. There is no NI 43-101 technical report or known resources on these projects.

-The “Mine Xavier” located 8km to the east of Ville de Saguenay is made up 2 past producing claims that produced 14,000 kg of muscovite that yielded 909 kg of commercial mica sold to markets in 1940, according to the Quebec Government data. The minerals identified include mica (Muscovite and Lepidolite) and Garnet, Beryllium in pegmatite.

-The “Mine Roberval” and “Mine du Lac M” are made up 4 past producing claims and 37 claims acquired by staking. These projects are located 18km east of the city of Alma in the Lac-St-Jean region of Quebec. Beryllium, Topaz and some LRE are found in Pegmatite that contain Lepidolite and Muscovite

Muscovite market and usages

Ground muscovite sells for $150- $300 per metric tonne on average; sheet mica for specialty uses can sell for prices up to $2,000 per kilogram. Mica has several properties that make it suitable for very special uses: The muscovite sheets are chemically inert, dielectric, elastic, flexible, hydrophilic, insulating, lightweight, reflective, refractive and resilient; it is also stable when exposed to electricity, light, moisture and extreme temperatures.

Most sheet mica is used to make electronic devices. The sheets are cut, punched, stamped and machined to precision dimensions. Uses include: diaphragms for oxygen breathing equipment, marker dials for navigation compasses, optical filters, pyrometers, retardation plates in helium-neon lasers, missile system components, medical electronics, optical instrumentation, radar systems, radiation detector windows, and calibrated capacitors.

Lepidolite market and usages

Lepidolite mica is sought for its lithium contents. New promising extraction and processing technologies have emerged in the past decade that is making it a potential alternative source for lithium carbonate.

ACQUISITION OF LEPIDOLITE PEGMATITE

St-Georges also acquired, jointly with Active Growth, 22 prospective claims by staking in 2 separate blocks in northern Quebec.

A 4.5 kilometers Lepidolite containing pegmatite corridor was identified by the Ministry of Natural Resources of Quebec (MNRQ) on the southern block of the acquisition (15 claims), located 91 km south of the village of Kujjuaq, while a chosen sample (MNRQ #2011054043) taken in 2011 and reported recently yielded 4,307 ppm of Beryllium (4,3 kg/tonne) and 2,008 ppm (2kg/tonne) of Tantalum on the northern block (7 claims), located about 74 km east of Kujjuaq. The Company has acquired the project in order to review its prospective opportunities.

Additional acquisitions of alternative sources of lithium and green-energy related projects are currently being reviewed by management.

OTHER CORPORATE MATTERS

FINANCING

In order to finalize the transition to its new business model, the Company has planned a private placement for a maximum of $145,000. This financing was announced on March 31, 2016 and is expected to close on Monday, May 2.

At this time, the current financing is expected to be fully subscribed based on subscriptions already signed.

The offering consists of units to be priced at $0.02 each. Each Unit consists of one common share and one non-transferable 28-month warrant entitling the purchaser to acquire one common share and one additional warrant for an initial exercise price of $0.04. The second warrant will have an exercise price of $0.06 and will expire 28 months after the initial financing closing date.

At its discretion, the Company will be able to force the exercise of the warrants if the price of the common shares on the CSE is at or above 150% of the warrants’ exercise price for 10 consecutive days based on a volume-weighted average price (VWAP) calculation.

Proceeds of this financing will be set aside in order to pay costs related to exchange listings, transfer agents, annual shareholder meetings, annual audits and the settlement of certain short-term debts.

Insiders who will participate in the private placement have accepted to subscribe to a 2-year voluntary resell restriction on the shares of the units.

Multilateral Instrument 61-101

Given the proposed participation of the inside holders for a significant proportion of the financing, the proposed financing might constitute a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security holders in Special Transactions (“MI 61-101”).

St-Georges is relying on an exemption to both the formal valuation and the minority shareholder approval requirements of MI 61-101, as neither the fair market value of the Units to be distributed to, nor the fair market value of the consideration to be received by St-Georges from the inside holders in connection with the proposed financing exceeds 25% of St-Georges’ share capitalization.

OTHER RESEARCH ADVANCEMENTS

St-Georges and Strategic Metallurgy Pty Ltd became partners on a 75-25% ratio in order to move forward a basket of new metallurgical and chemical technologies that can be deployed in a commercial environment within a relatively short schedule. Development tests and scalability demonstration should be conducted in Perth, Western Australia, in the pilot-plant facilities of Strategic Metallurgy in 2016.

POTENTIAL BUSINESS AND TECHNOLOGY PARTNERS

Further advancement of the Company’s R&D efforts will be done in parallel with the sourcing of business partners to target the mining reclamation business. We view this as a very lucrative opportunity due to the fact that North American governments are spending billions of dollars annually in reclamation projects where acid drainage remains one of the main issues.

St-Georges has initiated discussions with potential technology partners and intends to identify more as the new business model is deployed. The Company also plans to spend a good amount of time and resources soliciting environmental mandates from different governmental agencies. Moreover, the Company plans to secure grant money to demonstrate the performance of some of its technologies in real-time field situations.

ANNUAL MEETING

The press release from March 31, 2016 mentioned the month of June 2016 for the Company’s AGM. This meeting will be moved to August 2016. Shareholders will be asked to approve the option plan, the new board of directors and the modifications to its main business. No consolidation or reverse split is planned to be put to the vote.

Joel Scodnick, P.Geo. (CPG # 11498) St-Georges Platinum’s vice-president exploration, a Qualified Person under the National Instrument 43-101 has reviewed and approved the geological content of the current press release.

All securities issuance are subject to CSE and regulatory approval.

ON BEHALF OF THE BOARD OF DIRECTORS

“Frank Dumas”

FRANK DUMAS, President

About St-Georges

St-Georges is developing new technologies to solve the biggest environmental problems in the mining industry. If these new technologies are successful, they should improve the financial bottom line of current mining producers. The potential success of these technologies would also involve upgrading certain current known metal resources to economic status while addressing the environmental and social acceptability issues.

The Company also explores for Nickel on the Julie Nickel Project on Quebec’s North Shore.

Headquartered in Montreal, St-Georges’ stock is listed on the CSE under the symbol SX, on the US OTC under the Symbol SXOOF and on the Frankfurt Stock Exchange under the symbol 85G1. For additional information, please visit our website at www.stgeorgesplatinum.com

The Canadian Securities Exchange (CSE) has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this release.