Inspiration Mining of Canada Plans to Acquire 100% Interest in the CH-98 Phosphate Mine and Raise C$450,000

en.Wedoany.com Reported - On November 2, Inspiration Mining Corporation of Canada signed an asset acquisition agreement with Beauce Gold Fields, pursuant to which it plans to acquire a 100% interest in the CH-98 phosphate project in Quebec, Canada, by issuing 10 million common shares, and simultaneously plans to conduct a non-brokered private placement of up to C$450,000. The acquisition transaction remains subject to regulatory approval, and the net proceeds from the financing will be used for the Company's general working capital.

The CH-98 phosphate mine is located in the Lac-Saint-Jean region of Quebec and comprises 111 mining claims covering a total area of approximately 6,164 hectares, accessible via the Lac Froid gravel road. Under the acquisition agreement, Inspiration Mining will also issue 1.5 million common shares to an independent finder as service compensation, and such share issuance is likewise subject to regulatory approval.

The financing plan is to issue up to 9 million units at a price of C$0.05 per unit, each unit comprising one common share and one transferable warrant. Warrant holders may subscribe for common shares of the Company at a price of C$0.10 per share within 24 months after the closing of the financing. The closing of the financing is subject to the satisfaction of applicable regulatory conditions, and the newly issued shares are subject to a statutory hold period of four months and one day.

Rock samples previously collected by Beauce Gold Fields from the CH-98-61 outcrop returned a grade of 8.07% phosphorus pentoxide, while samples collected by the Government of Quebec from the same outcrop in 1998 returned a grade of 8.59%. Preliminary flotation tests conducted by COREM laboratory on ore from this outcrop achieved a concentrate grade of up to 38.9% phosphorus pentoxide and a recovery rate of 93.4%; all such data are results of prior exploration and laboratory testing.

Inspiration Mining plans to initiate the preparation of a technical report for the CH-98 phosphate mine in accordance with Canadian NI 43-101 standards, and to further evaluate the scale and continuity of apatite mineralization as well as the beneficiation and metallurgical characteristics.