VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 14, 2017) - Millennial Lithium Corp. (TSX VENTURE:ML), ("Millennial" or the "Company") is pleased to announce the engagement of Montgomery and Associates Inc., a United States-based hydrogeological consultancy to provide drill program and pumping test guidance and complete a NI 43-101 compliant resource estimate at the Pastos Grandes Project. The Pastos Grandes Project covering over 6000 hectares of the Pastos Grandes Salar in Salta, Argentina has been the subject of several recent exploration drill holes, all of which indicate significant lithium brine from surface to depths exceeding 400 metres.
Following completion of the phase I program, Millennial and its consultants have determined that a compliant lithium resource can be estimated with a budget that is significantly less than previously envisioned. This net savings is primarily due to drilling cost reductions and reduced drilling frequency as calculated by our consultants. As a result, the Company will be amending the financing previously announced on February 22, 2017.
The new terms of the financing will be 4.5 million units at a price of $1.25 for gross proceeds of $5,650,000. Each unit will consist of one common share and one half share purchase warrant, each whole share purchase warrant being exercisable into a common share for $1.50. The Company will not be accepting any further subscription agreements and is aiming to close by March 24, 2017. Current working capital of Millennial prior to any of this financing is $2.5 million.
In addition to overseeing ongoing operations in Argentina, management has recently completed a tour through Japan, Hong Kong, China and Thailand where they were introduced to a number of strategic partners and/or end users. Although these relationships are at a very early stage, NDA's have been executed with several parties.
"While there is no certainty that any definitive agreements will arise from the 5 NDA's signed to date it is encouraging to see the level of interest from potential strategic partners and end users at this early stage of our development. Millennial looks forward to completing an NI 43-101 resource estimate and further its talks with these groups. We appreciate the significant cost savings that Montgomery & Associates has identified," reports Graham Harris.
Millennial also reports it has initiated a ground geophysics program at its Cauchari East Project in Jujuy province, Argentina. Cauchari East covers an area of 2,990 hectares on the eastern side of the Cauchari-Olaroz Salar, adjacent to Orocobre's producing Salar de Olaroz and Lithium Americas Corp.'s Cauchari-Olaroz Project.
The geophysics program consists of a Vertical Electrical Soundings (VES) survey comprising seven profiles, four on the northern block and three on the southern unit. The method is suitable for detecting layering in soils, top of bedrock, groundwater table and salt water intrusions. The latter two applications in particular are of particular use for identifying subsurface brine and the interface with near-surface fresh water at Cauchari East.
Historic gravity and magneto-telluric (MT) survey profiles to the south of the property reported in the Orocobre Technical Report, and VES survey results to the north of the property as reported by Lithium Americas both indicate that the brine-hosting aquifers extend beneath the Cauchari East Project.
This news release has been reviewed by Iain Scarr, AIPG CPG., COO of the Company and a Qualified Person as that term is defined in National Instrument 43-101.
About Montgomery & Associates Inc.
Montgomery & Associates has a history of partnering with clients to address their evolving challenges. Our loyal base of clients includes municipalities, private water companies, government agencies, mining companies, industrial entities, and tribal groups who have come to expect state-of-the-art technical innovation combined with a strong, practical understanding of groundwater science. We employ a talented group of professionals in our U.S. and South American offices who specialize in hydrology, geology, soil science, policy and regulatory affairs, groundwater modeling, GIS analyses and 3D visualization, database management, and instrumentation and monitoring. Most of our principals have more than 20 years of experience; nearly all have master's or doctoral degrees, along with one or more professional registrations. M&A staff members frequently present at conferences, participate in professional organizations, and serve on advisory boards.
MILLENNIAL LITHIUM CORP.,
Graham Harris, Chairman
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This news release may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and 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.