Calgary, Alberta –News Direct– Lithium Chile Inc.
CALGARY, ALBERTA – TheNewswire – March 31, 2022 – Lithium Chile Inc. (TSXV:LITH) (OTC:LTMCF) (“Lithium Chile” or the “Company”) is pleased to announce that the Company has entered into an arm’s length definitive option agreement dated March 30, 2022 (the “Option Agreement”) with Monumental Minerals Corp. (“Monumental”) (TSX-V: MNRL; FSE: BE5) to earn up to 75% of the 5,200 hectare Salar De Laguna Blanca project (the “Laguna Project”) located near the town of San Pedro de Atacama, Chile (see news release dated March 9, 2022).
The Laguna Project is located within the prolific lithium triangle, a zone within the central Andes high desert that includes Chile, Argentina, and Bolivia. This zone is estimated to contain more than half of the world’s lithium supply beneath the many salt flats, also known as salars, that are common to the region. The Laguna Blanca property consists of 23 exploration concessions totaling 5,200 hectares, 100% owned by Lithium Chile through its wholly owned Chilean subsidiary Minera Kairos Chile Limitada. The Laguna Project includes both active and paleo salar brines and salts.
Steve Cochrane, President & CEO comments, “We are extremely pleased to have this joint venture with Monumental on our Laguna Blanca prospect. With our energies currently focused on expanding our lithium resource on Salar de Arizaro property in Argentina, this joint venture will ensure work continues on one of our Chilean properties. The experience and expertise Monumental’ s team gained from working on Advantage Lithium’s project in Argentina will be invaluable in advancing the Laguna Blanca project.”
Terms of the Option Agreement
In order to exercise the option to acquire a 75% interest in the Laguna Project, Monumental must issue common shares, make certain staged cash payments to Lithium Chile and incur exploration expenditures on the Laguna Project as follows:
a. Make cash payments of an aggregate of Cad$1,500,000 according to the following schedule:
1. $200,000 within thirty (30) days of final TSX Venture Exchange approval of this proposed transaction (the “Acceptance Date”);
2. $250,000 on or before the eighteen (18) month anniversary of the Acceptance Date;
3. $300,000 on or before the second anniversary of the Acceptance Date; and
4. $750,000 on or before the third anniversary of the Acceptance Date.
b. Incur minimum expenditures on the Laguna Project of not less than an aggregate of Cad$1,500,000 according to the following schedule:
1. $200,000 on or before the first anniversary of the Acceptance Date;
2. $500,000 on or before the second anniversary of the Acceptance Date; and
3. $800,000 on or before the third anniversary of the Acceptance Date.
c. Within thirty (30) days of the Acceptance Date, issue 3,401,874 common shares of Monumental to Lithium Chile (the “Payment Shares”). The number of Payment Shares will be reduced if required by the Exchange.
Subject to the exercise of the option to acquire 75% of the Laguna Project, Lithium Chile would retain a 1% net smelter returns royalty payable upon the commercial production of the Laguna Project. In addition to the statutory hold period of four months and a day from the date of issuance, the Payment Shares will be subject to a 12-month voluntary hold period from the date of issuance. Upon Monumental earning a 75% interest in the Laguna Project, Monumental and Lithium Chile will use commercially reasonable efforts to negotiate and execute a joint venture agreement for the purpose of jointly carrying out exploration, evaluation and development of the Laguna Project.
The transaction between Monumental and Lithium Chile is subject to TSX Venture Exchange approval.
About Lithium Chile
Lithium Chile is advancing a lithium property portfolio consisting of 69,200 hectares covering sections of 10 salars and two laguna complexes in Chile and 23,300 hectares in Argentina.
Lithium Chile also owns 5 properties, totaling 20,429 hectares, that are prospective for gold, silver and copper. Exploration efforts are continuing on Lithium Chile’s Carmona gold/silver/copper property which lies in the heart of the Chilean mega porphyry gold/ silver/copper belt.
Lithium Chile’s common shares are listed on the TSX-V under the symbol “LITH” and on the OTC-BB under the symbol “LTMCF”.
To find out more about Lithium Chile Inc., please contact Steven Cochrane, President and CEO via email: [email protected], Jose de Castro Alem, Argentina Manager via email [email protected] or Michelle DeCecco, Vice President of Corporate Development via email [email protected] or at 403-390-9095.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Forward Looking Statements
This news release may contain certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “expected”, “anticipated”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. In particular, this news release contains forward-looking statements relating to, the entering into of definitive agreements and regulatory body approvals. Such forward-looking statements are based on various assumptions and factors that may prove to be incorrect, including, but not limited to, factors and assumptions with respect to: the general stability of the economic and political environment in which the Company operates; the timely receipt of required regulatory approvals; the ability of the Company to obtain future financing on acceptable terms; currency, exchange and interest rates; operating costs; the success the Company will have in exploring its prospects and the results from such prospects. You are cautioned that the foregoing list of material factors and assumptions is not exhaustive. Although the Company believes that the assumptions and factors on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct or that any of the events anticipated by such forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive there from. Actual results could differ materially from those currently anticipated due to a number of factors and risks including, but not limited to: fluctuations in market conditions, including securities markets; economic factors; the risk that the new lithium or cesium exploration tender processes does not yield the anticipated benefits to the Company, including the risk that the Company will not receive the approvals necessary and the impact of general economic conditions and the COVID-19 pandemic. The Company does not undertake to update any forward-looking statements herein, except as required by applicable securities laws. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
View source version on newsdirect.com: https://newsdirect.com/news/lithium-chile-inc-welcomes-signing-of-definitive-agreement-with-monumental-minerals-corp-to-jointly-develop-lithium-chiles-laguna-blanca-property-747993826
Source: https://finance.yahoo.com/news/lithium-chile-inc-welcomes-signing-200051884.html