VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 10, 2017) - One World Minerals Inc. (CSE:OWM)(CSE:OWM.CN) ("OWM") announces that it has entered into a binding letter agreement with Lithium Investments ltd. ("LIL"), an arm's length private British Columbia company, to acquire all of the shares of LIL from the shareholders thereof (the "Transaction"). The principal assets of LIL consist of the rights and interests under an option and joint venture agreement (the "Option Agreement") with third parties to acquire up to a 90% interest in the Rico Litio Property in Mexico (the "Property").
The Property covers 291 square miles or 75,410 hectares over a closed basin where surface and auger samples were taken over a distance of 74 miles (120 kilometers). The sampling work program was conducted by LIL and returned assay results between 53 to 188 parts per million lithium in the northern part of the Property. In the southern part of the Property, samples ranged from 15 and 82 parts per million lithium, with an average value of 74 ppm lithium from 24 samples across 74 miles. It is important to note the samples were taken from surface salts and shallow auger holes and not from brines that may occur at depth.
The samples were taken by Jehcorp Inc., a private geologic consulting company, and analyzed at Chemex Labs, Vancouver (certificate #HE16078551). The samples also assayed between 1% and 1.9% potassium at both ends of the Property. The boron assays are also enriched. The assay results are listed below.
The basin also has geological attributes to develop lithium brines, including recent tectonic and volcanic activity; many hot springs; young rhyolitic volcanic lavas; high heat flows within the region; and ash flow tuffs surrounding and within the basin.
The Property is located in the state Baja California Norte, Mexico. Ready access to the Property includes paved roads and dirt roads within the basin. There is paved access to the USA, which is 100 miles to the north. The Property is only 21 miles (35 kilometers) from San Felipe which is a well-established service center that can provide housing and mine personnel. Power is available from major power lines that cross the Property near the north end, as well as interconnected power lines from the US via Mexicali to San Felipe.
In connection with the Transaction under the Option Agreement, OWM has agreed to issue 22,500,000 common shares to LIL with 10 million common shares issuable upon closing the Transaction and an additional 12.5 million common shares issuable upon the first anniversary of the closing date. In addition, OWM has agreed to pay LIL i) CDN$100,000 30 days after the closing date, ii) CDN$200,000 on the first anniversary date of the closing date, iii) CDN$300,000 on the second anniversary date of the closing date, and iv) CDN$400,000 on the third anniversary date of the closing date.
Pursuant to the terms of the Option Agreement, LIL has the option to earn an 80% interest in the Property for the issuance of 1,600,000 shares, payment of US$250,000 and property expenditures of US$900,000 before the end of 2017. LIL has the option to acquire an additional 10% interest in the Property for a further payment of US$5 million upon delivery of a feasibility report on the Property. If the underlying owners dilute below a 10% equity interest, a 3.0% NSR royalty replaces the 10% equity interest, and LIL has an option to purchase one half of the NSR royalty for US$2,500,000. All share issuance obligations of LIL are intended to be assumed by OWM on closing of the Transaction to acquire LIL.
Management anticipates that the initial exploration program on the Property will include gravity, time domain EM, and resistivity geophysical surveys, geologic mapping and detailed geochemical sampling throughout the basin prior to drill testing for anomalous brines with drilling of several targets to commence in May 2017 and be completed before the end of June 2017.
The Transaction does not constitute a reverse-take over transaction but OWM intends to file a Business Acquisition Report within 75 days of closing with respect to the acquisition in accordance with National Instrument 51-102.
Closing of the Transaction is conditional upon several conditions including satisfactory due diligence by OWM on the Property and stock exchange approval.
OWM is also pleased to report that the Canadian Securities Exchange has accepted OWM's Mogollon silver-gold project as a qualifying property, and has approved an exploration program at a cost of CDN $75,000 to map the geology and sample the northeast extension of the Queen Fault, one of the principal hosts to high grade gold and silver in the district.
Lithium and Potassium Results of Initial Sampling Program
||rhyolitic tuff- mark 203
||auger hole 1- 18 inch deep sample- mark 203
||auger hole 2 - 22 inch deep sample- mark 203
||auger hole 3- 24 inch deep sample- valley floor is rhyolitic tuff - mark 206
||auger hole 4 - 24 inch deep sample- mark 207
||auger hole 4 5 foot deep sample mark 207
||spherulitic rhyolite rock chip - mark 210
||fine grained lithic tuff- unconfrormable over spher rhy -mark 210
||crs grained qtz eye lithic tuff - mark 213
||fine grained qtz-mica shell bearing tuff- mark 213
||auger hole 5 - 24 inch deep salar sed vfg soil - mark 214
||auger hole 6- clayey salar sed-trc mca salt veneer on srfc- mark 215
||auger hole 7- vfg clayey brn soil, interstitial salt in mtx - mark 216
||auger hole 8- 24 inch deep, m-dk bn vfg slty-clayey w mca +salt-mark 217
||auger hole 9 - m bn clay w vfg salt, tr moisture- mark 218
||auger hole 10- hard caliche at 18inch depth, m bn fg sdy silt- mark 219
||auger hole 11- dk bn cly slt w abun salt - mark 220
||hand pick of salt concentrated at surface- mark 220
||auger hole 12- vfg sdy silt w caliche layers - mark 221
||auger hole 13- m bn slty qz-fld sltst - mark 222
||auger hole 14- vfg qz-fld mica clay- mark 223
||auger hole 15- hard salt srfc, 2 12 inch holes, mica clay- mark 224
||auger hole 16- slty cly com salt in mtx- mark 225
||hand pick of salt concentrate at srfc- mark 225
||auger hole 17- tan fg slty ss +/-mca, com thn cly layers- mark 226
||thn bedded slty vfg lakebed- mark 227
||cross bd qz-fld bio vfg ss- mark 228
Andrea Diakow, P. Geo., a Qualified Person as defined in NI 43-101, and a consultant of OWM, has read and approved the scientific and technical disclosure as stated in this news release.
On behalf of the Board of Directors of One World Minerals Inc.
Douglas Fulcher, CEO and President
Forward-Looking Information: This press release may include forward looking information within the meaning of Canadian securities legislation concerning the business of the OWM. Forward looking information is based on certain key expectations and assumptions made by the management of the OWM, including the closing of the Transaction, the intention of OWM to proceed with the advancement of the Property and exercise of the option, and intentions regarding the proposed exploration program. Although OWM believes that the expectations and assumptions on which such forward looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because OWM can give no assurance that they will prove to be correct. Forward looking statements contained in this press release are made as of the date of this press release. OWM disclaims any intent or obligation to update publically any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from the those anticipated in such statements, important factors that could cause actual results to direr materially from the company's expectations include: (I) potential comments from regulators which may delay or prevent closing; (II) inability for OWM to enter into and close the definitive agreement; (III) inability of OWM to execute its business plan and raise the financing required to close on the Transaction and exercise the option; and (IV) risks and market fluctuations common to the mining industry and lithium sector in particular. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, some of which are beyond the control of the OWM. The reader is cautioned not to place undue reliance on any forward-looking information contained in this press release.