Oroplata Resources, Inc.

June 01, 2016 07:00 ET

Oroplata Acquires Lithium Property

RENO, NEVADA--(Marketwired - June 1, 2016) - Oroplata Resources, Inc., (OTCBB:ORRP) is extremely pleased to announce that it has entered into a binding purchase agreement (the "Agreement") to acquire the Western Nevada Basin project ("WNB"), in Southwest Nevada.

The WNB Project covers the south central portion of an area that was first identified as Lithium rich by the USGS (United States Geological Survey). The Project includes 500 mining claims covering approximately 10,000 acres, the company has an option to acquire another 600 mining claims, approximately 12,000 acres. Oroplata will acquire a 100% interest in the WNB project. The vendors of the project will retain a royalty equal to 2% of the gross value of mineral products recovered from commercial production, which may be reduced to 1% with a single payment of $1,000,000 (one million U.S. Dollars) at any time prior to production.

Lithium Brine projects have a number of significant advantages over conventional hard rock Lithium mining projects; they are cheaper to explore compared to the alternatives; they are quicker in proving up a resource and reserves; they are faster and much less capital intensive to put into production. Lithium brine production also has a much smaller environmental footprint and produces ready-to-ship Lithium carbonate.

Oroplata has recognized the recent explosive growth in lithium demand, which shows little sign of slowing down. Prices for Lithium carbonate are up 47% from the average price in 2015 in the first quarter of this year and numerous sources have reported the potential growth in demand for Lithium to be very robust. The Nevada-based Tesla Gigafactory, expected to open on July 29th 2016, will produce advanced lithium batteries for Tesla. Elon Musk has stated that Tesla will need to consume the entire lithium market to meet its demands of 500,000 Model 3's by 2018. Chinese demand of lithium has been another factor behind the surge of the lithium market which is driven by the country's desire for electric cars and buses. NextEV, is a Chinese company, will launch its first lithium-ion powered electric car next year. Faraday is another company that has and will continue to contribute to the lithium surge. Faraday is considered to be a future rival to Tesla, which plans on building a $1 billion dollar facility in North Las Vegas with another potential site in northern California. All of this will create a global shortage in Lithium, thus viable near-term Lithium projects will be in great demand.

In a report from Goldman Sachs called "What if I told you" Goldman refers to lithium as the "new gasoline". This is due to increasing demand for EV's. The cause is that the lithium market could triple from the current demand of 160,000mt to 470,000mt by 2025. Just 1% EV penetration into the market increases demand by 70,000mt a year. With conventional automakers producing more EV's, Tesla producing more cars and new start up companies emerging this is likely to happen.

"The southwest U.S. has a lot of characteristics in common to the large areas of Lithium brine production in South America," comments CEO, Craig Alford, PGeo, "however, the U.S. has much better transportation, knowledgeable manpower and electrical grid infrastructure."

Mr. Alford commented further "The WNB project was selected from several sites and could rival the Clayton Valley. The project has nearby Tertiary Volcanic source rocks for Lithium, a sizeable basin and coincident geochemical and geophysical anomalies."


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