VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 18, 2016) - Millennial Lithium Corp. (TSX VENTURE:ML)(OTCQB:MLNLF)("Millennial" or the "Company") reports that its wholly owned Argentine subsidiary, Proyecto Pastos Grandes S.A. ("PPG SA") has executed a formal option agreement (the "Definitive Agreement") with Southern Lithium Corp. (TSX VENTURE:SNL) ("Southern").
In the Definitive Agreement, PPG SA grants Southern an option (the "Option") to acquire up to an 80% interest in PPG SA's Cruz property in the Pocitos salar basin in Salta province, Argentina (the "Cruz Property").
The Company previously announced that PPG SA had entered into a letter of intent with Southern. The letter of intent called for the Definitive Agreement to be signed on or before November 10, 2016.
Terms of the Definitive Agreement:
To exercise the Option and acquire a 70% interest in the Cruz Property, Southern must:
- Pay a non-refundable deposit of $150,000 (U.S.) to PPG SA. This payment has already been made;
- Pay an additional $50,000 (U.S.) non-refundable deposit to PPG SA upon the execution of the definitive agreement. This payment has already been made;
- Issue 540,000 common shares of Southern to PPG SA or Millennial at a deemed price of 25 cents, subject to Exchange approval;
- On the closing of the first tranche of Southern's recently announced private placement or Nov. 30, 2016 (whichever is earlier), place in a joint exploration account the sum of $500,000 (U.S.);
- Spend the $500,000 (U.S.) in the joint exploration account on exploration of the Cruz Property on or before Oct. 1, 2017;
- Pay to PPG SA the sum of $1-million (U.S.) on or before Oct. 1, 2017;
- Pay to PPG SA the sum of $1-million (U.S.) on or before Oct. 1, 2018.
To exercise the Option for an additional 10% interest (for a total interest of 80%) in the Cruz Property Southern must, prior to the date that is six months after the third anniversary of the Definitive Agreement, complete a bankable feasibility study on the Cruz Property.
About the Cruz Property:
The 2,500 hectare Cruz Property lies at the north end of the Pocitos salar basin in Salta Province, Argentina. The Cruz Property is at the junction of a large north-south fault system and the northwest-southeast "megastructure" along which lies the Rincon volcano, the possible source of the Rincon salar lithium brine occurrences in the Rincon salar basin immediately north of the Pocitos salar basin.
The 60 kilometre long Pocitos salar basin has been the subject of surface sampling by several groups in the past. In the 1970's a government agency made a single shallow drill hole in the Pocitos salar basin. To the Company's knowledge, that drilling is the only exploration drilling to date and the results of that drilling cannot be confirmed under NI 43-101 standards for exploration applicable today. A review by the Company of recent samplings in the Pocitos salar basin tend to show higher lithium concentration along the deep faults in the basin, leading to the possibility, which would have to be confirmed with further exploration, that the faults could be conduits for lithium-bearing fluids emitted by the northern volcanic center.
Millennial has granted an aggregate of 250,000 stock options (the "Options") to certain consultants of the Company. The Options have a term of 5 years and are exercisable at a price of $1.35 per common share. The Options are subject to the acceptance of the TSX Venture Exchange.
This news release has been reviewed by Iain Scarr, VP of Development and Exploration of the Company and a qualified person as that term is defined in National Instrument 43-101.
MILLENNIAL LITHIUM CORP.
Graham Harris, Chairman
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 an applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule" and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, currency risks including the exchange rate of USD$ for Cdn$, fluctuations in the market for lithium, changes in exploration costs and government royalties or taxes in Argentina and other factors or information. Such statements represent the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.