Etna Resources Inc.
TSX VENTURE : ETN

October 29, 2009 10:15 ET

Etna Resources Inc.: Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 29, 2009) - Etna Resources Inc. ("Etna") (TSX VENTURE:ETN) is pleased to provide the following corporate update with respect to the previously announced transaction pursuant to the Amended and Restated Securities Exchange Agreement dated October 18, 2009 with South American Lithium Company S.A. Cerrada ("SALICO"), Sociedad Gareste Limitada ("Gareste") and PGM International S.A. Cerrada. Etna continues to make progress on the satisfaction of the necessary conditions of closing required to consummate the transaction. To this effect, on October 16, 2009, Etna filed documents with the TSX Venture Exchange in anticipation of receiving final regulatory approval of the transaction, which documents included a National Instrument 43-101 compliant technical report for nine lithium salar projects in Chile (the "NI 43-101 Report"), a title opinion for the properties to be acquired, a financial plan, and a finder's fee agreement. Additionally, Etna is working towards closing the previously announced non-brokered private placement financing of up to $3,000,000.

Upon closing of the Amended and Restated Securities Exchange Agreement, Etna will obtain 99% of SALICO which, in turn, holds interests in a total of nine lithium salars in Chile as set out in the table below. The existing portfolio of rights in the nine salars to be acquired includes surface brine lakes or surface flow at Laguna Verde, Lagunas Bravas and Rio Salado/Pedernales, and six additional lithium brine projects, all located in the mineral-rich Atacama Region III. Following the closing of the acquisition, Etna anticipates concentrating its initial efforts on the brine lake at the Laguna Verde salar, which is the primary focus of the NI 43-101 Report. The rights in these nine lithium salars cover a cumulative area in excess of 13,000 hectares, all accessible via serviceable roads. It is believed that the salars collectively carry the potential to host lithium in three distinct brine types: surface water, shallow and deep brines.

Name of SalarHectares AcquiredProperty Rights held by SALICO
Lagunas Jilgueros1,100100% of concessions
Lagunas Bravas1,100100% of concessions
Salar Ignorado600100% of concessions
Salar de Wheel Wright1,200100% of concessions
Laguna Escondida900100% of concessions
Rio de la Sal/Pedernales900100% of concessions
Laguna Verde3,400100% of concessions
La Laguna400100% of concessions
Salar Piedra Parada3,600(1)Contractual rights to exploit lithium, light metals and commercial salts(1)

(1) SALICO has been granted contractual rights from Gareste to extract and exploit lithium, light metals and commercial salts with respect to Salar Piedra Parada; Gareste owns senior mineral concessions at Piedra Parada on over 2,100 hectares, and has overstaked concessions on 1,500 additional hectares at Piedra Parada which are subject to the senior rights of a third party.

ETNA RESOURCES INC.

Jerry A. Minni, Director & Chief Financial Officer

This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company such as the statement that: (i) the closing of the financing may occur; (ii) the closing of the Amended and Restated Securities Exchange Agreement may occur; (iii) the Company may concentrate on the Laguna Verde salar; and (iv) the belief that the salars may carry the potential to host lithium in three distinct brines types. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information, including: (i) the inability to obtain Exchange approval and close the acquisition and financing for any reason; (ii) adverse market conditions; (iii) a decrease in demand for and the price of lithium; (iv) risks associated with title to property interests; (v) political risks involving Chile, including changes to legislation affecting mineral exploration and development activities; and (vi) general uncertainties with respect to mineral exploration in general. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice.

THIS NEWS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES IN THE UNITED STATES. THE SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO "U.S. PERSONS", AS SUCH TERM IS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT, UNLESS AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE.

Neither 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.

Contact Information

  • Etna Resources Inc.
    Jerry A. Minni
    Director & Chief Financial Officer
    604-683-8610