Sep 15 2016
Advantage Lithium Corp. (the "Company" or "Advantage Lithium") has entered into letter of intent (the "LOI") to acquire 100% interest in the Stella Marys project, Salta Province, Argentina (the "Property"). The 1,472 ha property is located in the western sector of the Salinas Grandes salar within Argentina's "Lithium Triangle" of developing and producing projects, including the country's two lithium producers. Stella Marys lies immediately adjacent to Orocobre's Salar de Salinas Grandes lithium-potassium-boron brine project, which hosts a near-surface, low sulfate inferred resource estimate of 56.5 million cubic meters of brine grading 795 mg/l lithium (239,200 tonnes lithium carbonate equivalent (LCE)) and 9,547 mg/l potassium (1.03 million tonnes of potash equivalent) and 283 mg/l boron.
Orocobre's shallow inferred mineral resource is immediately adjacent to and potentially extends onto the Stella Marys property, where a previous operator is reported to have completed a comprehensive exploration program of mapping and sampling, geochemistry, some drilling with pump tests, and preliminary engineering. These and other technical reports will be confirmed as part of the Company's due diligence.
Project Highlights
- 1,472 ha project immediately adjacent to a large, shallow depth, inferred resource
- Prior exploration work includes mapping, sampling, geochemistry, drilling with pump tests and preliminary engineering
- Salta province of Argentina is ranked by Fraser Institute (2015 survey) as one of the most favourable jurisdictions in Central and South America for exploration
- Near to excellent infrastructure corridor of road, rail, and power
The Lithium Triangle and Argentina's Salta Province
Argentina, Chile and Bolivia hold the world's largest lithium and comprise what's has become known as the "lithium triangle," - a desert region in the high Andes. In Argentina, this region hosts a number of developed and developing projects, including two producing lithium mines (Orocobre's Olaroz and FMC's Salar de Hombre Muerto), along with several properties with advanced technical studies to feasibility study level, and numerous earlier-stage lithium and potash exploration targets.
According to the Fraser Institute's 2015 survey, Salta province ranked as one of the most favourable jurisdictions for exploration in Central and South America in its Investment Attractiveness Index, due to mineral policy and best practices.
David Sidoo, President and Director, of Advantage Lithium, commented: "Acquiring a lithium brine project of this calibre in Argentina's Lithium Triangle is a tremendous step forward for the company and our progress points clearly to calibre of the management and technical team we have assembled. With a drill program soon to start at our Clayton NE project in Nevada, a recent agreement to acquire three exciting early-stage projects in Mexico and now, this more advanced project next to Orocobre's large and shallow resource at Salar de Salinas Grandes, we are closer to fulfilling our goal as a leading junior in the lithium space."
Details of the LOI
In order to acquire the Property, the Company must pay: (a) a non-refundable deposit of US$100,000 upon signing of the LOI (which has been paid); (b) a further US$250,000 and 300,000 common shares of the Company on the earlier of the date of TSXV acceptance and 90 days from date of the LOI; (c) a further US$250,000 and 300,000 common shares on the six month anniversary of TSXV acceptance; and (d) a further US$650,000 and 900,000 common shares on the first anniversary of TSXV acceptance.
The obligation of the Company to complete the acquisition (other than payment of the US$100,000 which is non-refundable) is subject to completion of due diligence by the Company. If, after completion of due diligence, the Company elects to proceed with the acquisition and fails to complete the payment obligations, the Property and any payments already made by the Company will revert to the vendor. The vendor is based in Argentina and is at arm's length to the Company. The parties intend to use commercially reasonable efforts to complete a definitive agreement within 90 days.
A finder's fee (the "Finder's Fee") equal to the maximum finder's fee permitted under the policies of the Exchange will be paid to Synergy Resource Capital (described below) for introducing the Project. The Finder's Fee will be paid in cash in tranches as the payments above are made to the Vendor.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Ross McElroy, P.Geol., Technical Advisor to Advantage Lithium Corp., and the Designated Qualified Person for the company.
Further information about the company can be found at www.advantagelithium.com.