Belmont Resources Inc.Â [BEA-TSXV; L3L-FSE] said Thursday March 22 that it has received TSX approval and has now completed the first $140,000 tranche of a previously announced private placement financing. On March 16, 2018, the company said it was arranging a non-brokered private placement of up to four million units at a price of $0.05 per unit to raise gross proceeds of $200,000. The company said it intends to use the net proceeds of the private placement for drilling and exploration at its 100%-owned Kibby Basin-lithium property in Nevada and for working capital.
It said $120,000 was earmarked for Kibby Basin and $80,000 for general working capital.
On Thursday the company said it has issued 2.8 million units at $0.05 per unit for gross proceeds of $140,000.
Belmont shares were unchanged at 5 cents on Thursday.
The announcement comes one week after Belmont said it has initiated the next stage of exploration and assessment on its Kibby Basin lithium property.
Belmont President and CEO James Place, along with the company’s consulting experts, are interpreting data and mapping from Quantec Geoscience’s Spartan Magnetotelluric (MT) Survey Report and have established approximate locations for drill holes.
The survey covered most of Belmont’s Kibby Basin claims and included the playa basin area as well as some of the adjoining higher level lands.
Belmont’s consulting geologist Robert Cuffney from Reno, Nevada will finalize and map drill hole locations and process the applications for permits with authorities in Nevada in anticipation of drilling starting in the second quarter of 2018.
The objective of the MT Survey was to map potential saturated lithium brine on the Kibby Basin property. Lithium-rich brine of this nature should be associated with a very conductive zone at depth as lithium brine deposits are accumulations of saline groundwater that are enriched in dissolved lithium.
Belmont recently said MT resistivity results from the Kibby Basin property clearly mapped a more conductive zone at many of the survey stations.Â “This variation of the resistivity at depth is interpreted by Quantec as being a potential contact with sub-surface brine that may contain lithium,” the company said.
It means Belmont has found highly prospective and precise targets for the next phase of drilling. The company said the locations where the potential brine contacts are closest to the playa surface are being considered as the most favourable targets.
On March 30, 2016, the company acquired 16 placer mining claims, representing 1,036 hectares in Esmeralda County, Nevada.Â The Kibby Basin property is located 65 km north of the Clayton Valley. Belmont’s total Kibby Basin land position stands at 2,760 hectares.
Belmont is also exploring for uranium in a joint venture with International Montoro Resources Inc. [IMT-TSXV, IMTFF-OTC] on two properties near Uranium City in northern Saskatchewan.