Pocitos West is located 160km from Salta, and approximately 40 km due west of Millennial’s flagship Pastos Grandes Project where recent drilling has confirmed significant lithium brines from surface to depths of 400 metres. Pocitos West is directly accessible by Salta Provincial Highway 17 and close to other high quality regional and site infrastructure including local labour, rail and power generation.
Millennial and the Vendors of Pocitos West executed a definitive option agreement (the “Agreement”) that defines the material terms and conditions of the Option. A non-refundable deposit of $100,000 (the “Deposit”) has been paid to the Vendors as has the additional $150,000 (U.S.) (the “First Option Payment”) which was due upon receipt of Exchange approval of the Option.
The Option may be exercised within three years by making a total of $4,500,000 (U.S.) in payments (including the Deposit and the First Option Payment) (the “Option Exercise Price”): (i) $250,000 (U.S) six months from the date of the Agreement; (ii) $500,000 (U.S.) twelve months from the date of the Agreement; (iii) $500,000 (U.S.) eighteen months from the date of the Agreement; (iv) $500,000 (U.S.) twenty-four months from the date of the Agreement; (v) $500,000 (U.S.) thirty months from the date of the Agreement; and (vi) $2,000,000 (U.S.) thirty-six months from the date of the Agreement.
Upon payment of the full Option Exercise Price, Millennial will have earned a 100% interest in Pocitos West.
No securities of the Company are to be issued in conjunction with exercise of the Option.
The 60-kilometre-long Pocitos salar basin was previously drill tested by 12 shallow holes in 1979 by an Argentine government agency, the Direccion General de Fabricaciones Militares (DGFM). The most significant result from the historical work program includes a shallow drill hole, which averaged 417 parts per million (ppm) lithium and 15,300 ppm potassium. The results of these holes and the sampling conducted are historical in nature and cannot be confirmed by the Company under National Instrument 43-101 standards of exploration applicable today.
In 2010, Li3 Energy Inc. announced the results of 46 brine samples taken from just below the surface of the salar, with brine assays ranging from 300 ppm to 600 ppm lithium. These samples were taken immediately east of the Pocitos West property. Previous geophysical studies conducted by Li3 Energy Inc. also demonstrate the Pocitos basin, where sampled, is approximately 500 metres deep and that the prospective brine target is open and extends westward toward the Pocitos West property.
This news release has been reviewed by Iain Scarr, AIPG, CPG, who is COO of the Company and a qualified person as that term is defined in National Instrument 43-101.
To find out more about Millennial Lithium Corp, please contact investor relations at (604) 662-8184 or email email@example.com.
MILLENNIAL LITHIUM CORP.
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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.