VANCOUVER, Canada –- Southern Lithium Corp. (TSX-V: SNL FSE: SL5) (“Southern” or “the Company”) is pleased to announce that a Phase One exploration program has been designed for its Cruz lithium brine property, located in Salta Province, Argentina.
This first phase of the technical work commencing this month will entail the execution of a US$500,000 exploration program at the Cruz Property and will consist principally of geophysics (CSAMT), with well drilling and brine sampling starting in January 2017. The objective of the geophysical program is to identify lithium brine targets at depth, and the wells will test those targets.
The Environmental Impact Report (EIR) for the exploration program has been completed and is to be submitted to authorities during the week of December 5th.
Southern Lithium’s president Larry Segerstrom commented, “We are so pleased to start work on the Cruz project. I believe this project has very high technical merit. The property’s geologic setting combined with its proximity to an existing lithium producer makes it a very interesting exploration target. We look forward to the highly anticipated results of this work program.”
About the Cruz Property
The Cruz Property is located within South America’s Lithium Triangle (northern Chile, northwestern Argentina and southwest Bolivia). The property encompasses 2,500 hectares in the Pocitos salar basin in Salta Province, Argentina, and lies 11 kilometers south of Ady Resources’ lithium mining operation in the Salar del Rincón Basin.
The property is located along the major fault and volcano chain that defines the southern limit of the Rincon Basin, where ADY Resources is extracting lithium brine, and the northern limit of the Pocitos basin, where the Cruz property is located. Both properties lie along the trend hosting the important lithium resources of the region, and adjacent to the major crossing lineament that is thought to have given rise to the hydrothermal activity that has supplied lithium to both closed salar basins.
The 60-kilometer long Pocitos salar basin has previously been drill tested with a shallow 12-hole program in the 1970s, by an Argentinean government agency “Direccion General de Fabricaciones Militares”. To date, this is the only confirmed exploration drilling conducted in the area. The hole that produced the best results is only one kilometer southeast of the Cruz property boundary, and averaged 417 parts per million, however these results are considered historical and cannot be confirmed under NI 43-101 standards.
About Southern Lithium Corp.
Southern Lithium Corp. is a resource exploration company engaged in the business of acquiring and exploring minerals properties. Southern Lithium Corp. has assembled an experienced management team with a growth strategy to develop portfolio of Lithium projects. The Company’s main objective is to add shareholder value through exploration and development of high quality resources through strategic acquisitions, joint ventures, and marketing while maintaining a lower risk profile through project diversification and sound, cost-effective financial management. With the potential acquisition of the Cruz property, Southern Lithium intends to establish its presence in the Pocitos basin and further deliver on its mission to secure technically superior lithium projects. The Company is only focusing on projects of the highest technical merit in favorable geopolitical jurisdictions.
Previously Announced Private Placement
The Private Placement announced November 3, 2016 to raise $2-million consists of the issuance of 8 million units at $0.25 cents per unit. Each unit consists of one common share and one share purchase warrant which entitles the holder to purchase one additional common share at $0.35 cents per share for a period of 18 months following the closing of the private placement. The Warrant is subject to a conversion feature. In the event that the trading price of the Shares of the Company is at or above C$0.50 per Share for 10 consecutive trading days at any time that is four months after the closing date of the Offering, the Company will have the right to accelerate the expiry date of the Warrants to the date which is 30 days after notice is provided to the Warrant holders. Finders’ fees and commissions may be paid by Southern in relation to this Private Placement. Southern will make provision for an over-allotment option (Greenshoe) to allow a purchase of up to 10% additional units beyond the number of units in this Private Placement.
The scientific and technical information contained in this news release has been reviewed and approved by Larry Segerstrom, M.Sc. (Geology), P.Geo., a Director of the Company, who is a “Qualified Person” as such term is defined under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).
Further information about the Company is available on our website at southernlithiumcorp.com or under our profile on SEDAR at sedar.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Chief Financial Officer
For further information, please contact:
Southern Lithium Corp.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within it, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements, other than as required pursuant to applicable securities laws.