November 17, 2016, Vancouver, B.C. – Southern Lithium Corp. (the “Company”) (TSX-V: SNL FSE: SL5) announced that it has executed a formal option agreement (a “Definitive Agreement”) with Proyecto Pastos Grandes S.A. (“PPG SA”), a wholly owned subsidiary of Millennial Lithium (TSX-V: ML), to be granted an option to acquire an eighty percent (80%) interest in the PPG SA’s Cruz property in the Pocitos salar basin in Salta Province, Argentina. The transaction is subject to TSX Venture Exchange approval.
The terms of the Definitive Agreement:
In order for the Company to acquire a seventy percent (70%) interest in the Cruz Property, the Company must:
- Pay a non-refundable deposit of US$150,000 to PPG SA. This payment has already been completed.
- Pay an additional US$50,000 non-refundable deposit to PPG SA upon the execution of the Definitive Agreement. This payment has been made.
- Issue 540,000 common shares of Southern Lithium to PPG SA or Millennial at a deemed price of $0.25 CDN subject to exchange approval.
- On closing of the first tranche of the Private Placement or November 30, 2016 (whichever is earlier) place in a joint exploration account the sum of US$500,000 (the “Exploration Funds”).
- Spend the Exploration Funds of US$500,000 lithium mineral resources exploration activities on the Cruz Property on or before October 1, 2017
- Pay to PPG SA the sum of US$1,000,000 on or before October 1, 2017; and
- Pay to PPG SA the sum of US$1,000,000 on or before October 1, 2018.
((a)-(g) being, collectively, the “Option Exercise Price”).
To earn the additional 10% interest (for an aggregate total 80% interest) in the Property, the Company must, prior to that date which is 6 months after the third anniversary of the Definitive Agreement, complete a bankable feasibility study on the Property.
PPG SA will also grant the Company a right of first refusal over any mineral properties it acquires contiguous to the Cruz Property, and the Company will agree not to acquire any mineral interests within a 10km radius of the Cruz Property until October 1, 2017.
The Definitive Agreement is subject to the approval of the TSX Venture Exchange.
Southern Lithium’s president Larry Segerstrom commented, “We are excited to advance past the LOI stage and enter into a Definitive Agreement with Millennial Lithium so that we can get to work on the Cruz property. We are also actively looking at other properties in this region.”
About the Cruz Property:
The Cruz property is located within South America’s Lithium Triangle (northern Chile, northwestern Argentina and southwest Bolivia). It encompasses 2,500 hectares at the north end of the Pocitos salar basin in Salta Province, Argentina, and 11 kilometers south of Ady Resources’ Salar del Rincón operation, the only lithium producer in the province.
The 60-kilometer long Pocitos salar basin has only been drill tested by a single hole in the 1970s by a government agency. To date, this is the only confirmed exploration drilling done and the results of this hole cannot be confirmed under NI 43-101 standards of exploration applicable today.
As a result of the potential acquisition of the Cruz property, Southern Lithium hopes to establish its presence in the Pocitos basin and further deliver on its mission to secure strategic lithium projects. The Company is only interested in projects of the highest technical merit in favorable geopolitical jurisdictions.
Larry Segerstrom, M.Sc. (Geology), P.Geo., A Director of the Company, is a Qualified Person as defined by National Instrument 43-101 (“NI 43-101”) and has reviewed and approved the contents of this news release.
About Southern Lithium Exploration
Southern Lithium Corp. is a resource exploration company engaged in the business of acquiring and exploring minerals properties. Southern Lithium Corp. has managed to assemble an experienced management team with a growth strategy to develop a diversified portfolio of 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.
On behalf of the Board of Directors,
Chief Financial Officer
Further information about the Company is available on our website at www.southernlithiumcorp.com or under our profile on SEDAR at www.sedar.com.
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.
Southern Lithium Corp.