Nevada Energy Options Out 70% of Black Rock Desert

NEVADA ENERGY METALS OPTIONS OUT THIRD LITHIUM PROJECT AND FURTHERS ITS PROJECT GENERATOR MODEL
Nevada Energy Metals Inc. (TSXV:BFF) has completed a third joint venture option agreement . The company has entered into an option agreement with LiCo Energy Metals Inc. dated Nov. 10, 2016, whereby LiCo can acquire an undivided 70-per-cent interest, subject to a 3-per-cent net smelter return royalty, in the Black Rock Desert lithium project. The property consists of 128 placer claims (2,560 acres, or 1,036 hectares) located in southwest Black Rock Desert, Washoe county, Nevada. Reno, a major population centre, lies 177 kilometres to the southwest . The agreement is non-arm’s length and so constitutes a related party transaction, as the company’s president and chief executive officer is also the president and CEO of LiCo. The agreement is subject to TSX Venture Exchange approval.
Chief operating officer Tim Fernback states, “This agreement is an exciting milestone for the company as it is the third time that the company has successfully optioned out particular interest in one of its properties to further the lithium property project-generator business plan.”
The geologic setting combined with the presence of lithium in both active geothermal fluids and surface salts within the Black Rock Desert property match characteristics of lithium brine deposits at Clayton Valley, Nevada, and in South America. Geothermal fluids adjoining the claims are known to contain anomalous lithium values, and a recently completed surface silt sampling program confirmed values containing up to 520 parts per million lithium. Although geological work has been undertaken for geothermal energy production in the area, the lithium-in-brine potential of the playa has not been specifically studied. Initially, the lithium target in this basin was highly conceptual; however, recent exploration results are highly encouraging and warrant a detailed exploration drilling for a Clayton Valley-type brine deposit.
Pursuant to the terms of the agreement, LiCo may exercise the option as follows:

• Making a payment of $20,000 (U.S.) immediately upon execution of this agreement;
• Making a payment of $150,000 (U.S.) upon receipt of the exchange approval;
• Completing the issuance to the optionor of 4.5 million fully paid and non-assessable common shares in the capital of the optionee as follows: 1.5 million consideration shares upon receipt of the exchange approval, 1.5 million consideration shares on or before the one-year anniversary of the agreement date and 1.5 million consideration shares on or before the two-year anniversary of the agreement date;
• Incurring an aggregate of $1.25-million in exploration expenditures on the property on or before the three-year anniversary of the agreement date.

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