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Pure Energy Minerals (TSXV:PE,FWB:A111EG,OTC:HMGLF) announced the signing of a Letter of Intent with Nevada Alaska Minerals Ltd. for 2,554 acres of placer mineral claims contiguous to, and to the south of, Pure Energy’s existing 4,520 acre Clayton Valley, Nevada Lithium Brine prospects.
As quoted in the press release:
Upon the successful execution of the Definitive Agreement (see below), the addition of the CE and CD claims will bring the Company’s total project size to 7,074 acres, which entirely overlie the north-south trending basin that is present beneath the southern half of Clayton Valley. The recent seismic reflection survey of the area conducted by Pure Energy (news release https://www.pureenergyminerals.com/pure-energy-commences-seismic-survey-of-clayton-valley-lithium-brine-prospects/) included the new CE and CD area and, subject to the execution of the Definitive Agreement, allows for the potential expansion of the resource assessment of the entire claim area, to be completed as part of a forthcoming Inferred Resource Assessment Report (NI 43-101 compliant).
Proposed Transaction:
The binding LOI lays out the principle terms of the placer claim lease deal, and includes the following general conditions:
Drafting and Execution of the final lease document (the “Definitive Agreement”) no later than May 31st, 2015 (the “Effective Date”);
An annual lease payment of CDN$35,000, to be paid on or before the anniversary of the Effective Date, plus the issuance of Pure Energy common shares equivalent to the cash value of the currency difference between the US and CDN exchange rate on date of lease payment. These terms will apply for the first, second, third and fourth anniversaries of the Effective Date, after which, the lease fee will convert to an annual fee of US$75,000;
A one-time payment of 200,000 common shares in Pure Energy at execution of the Definitive Agreement;
Pure Energy will pay annual County and BLM fees;
A 3% Net Smelter Return (NSR) Royalty to be paid by Pure Energy pro-rated to the amount of lithium removed and processed from beneath the CE and CD Claims; and,
Pure Energy at any time may acquire a 100% interest of the Claims via a single payment of US$500,000 in cash or common shares of Pure Energy.
The above proposed transaction is subject to the completion of the Definitive Agreement by the parties and receipt of all required regulatory approvals for the transaction.
Click here to read the Pure Energy Minerals (TSXV:PE,FWB:A111EG,OTC:HMGLF) press release.
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