VANCOUVER, Canada –- Southern Lithium Corp. (TSX-V: SNL) (FSE: SL5) (“Southern” or “the Company”) is pleased to announce it has completed the first hole of the Phase One exploration program and has begun drilling the second hole at its Cruz Property in the Pocitos Salar Basin in Salta Province, Argentina. Additionally, the Company wishes to announce that it has increased the Non-Brokered Private Placement (the “Private Placement”), previously announced on July 26, 2017, from CDN$1.2 Million to $1.6 Million.
The first hole (CREX 1701) of the current program was drilled to a depth of 476 metres at the northern end of the Company’s claim in the Pocitos Salar Basin. The purpose of this core hole was to obtain depth-specific samples of the brine and its host material to collect geochemical, lithologic and porosity data.
The Company has mobilized the drill to the 2nd drill pad that is about 3.5 km to the south of the location of hole CREX 1701. A geophysics program will be conducted to confirm continuity between holes and the hydrogeology. Southern Lithium intends to be very aggressive in its exploration approach on the Cruz Property.
The program is being managed in Argentina through Southern’s joint venture partner Millennial Lithium Corp. Millennial has engaged HIDROTEC S.R.L., a Salta-based drilling company with extensive experience in drilling and testing salar-hosted lithium brines. Millennial has engaged Mike Rosko of Montgomery and Associates, Inc. a US-based hydrogeological consultancy to provide program guidance and act as the Company’s qualified person for reporting results.
Mr. Clive Massey, CEO of Southern Lithium Corp. stated: “Management is very pleased with the progress of our phase one exploration program at the Cruz property, and thrilled to begin activity in the highly prospective Argentinian portion of the Lithium Triangle, which we believe will continue to yield impressive discoveries in the years to come.
The company will issue 6,400,000 units (each “Unit”) at a purchase price $0.25 per Unit, for total gross proceeds of up to $1,600,000. Each Unit will consist of (1) common share (“Common Share”) of the Company and one (1) non-transferable share purchase warrant (“Warrant”).
Each Warrant will entitle the holder to acquire one (1) Common Share at an exercise price of $0.35 for a period of 18 months from the closing date of the Private Placement. In the event that the Company’s common shares trade at a closing price greater than $0.50 per share for a period of 10 consecutive trading days at any time after the closing date, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date hereafter referred to as the (“Forced Conversion Feature”) on which such notice is given by the Company.
The Company may, at its sole discretion, pay a finder’s fee within TSX Venture Exchange policy guidelines in connection with the Private Placement. The Private Placement is subject to TSX Venture Exchange approval.
About the Cruz Property
The Company has executed a formal option agreement with Proyecto Pastos Grandes S.A. (“PPG SA”), a wholly owned subsidiary of Millennial Lithium Corp. (TSX.V:ML) (FSE: A3N2) (OTCQB:MLNLF), through the option Southern Lithium can earn up to an eighty percent (80%) interest in the PPG SA’s Cruz Property in the Pocitos Salar Basin in Salta Province, Argentina.
The Cruz Property is located in South America’s Lithium Triangle (northern Chile, northwestern Argentina and southwest Bolivia). The property encompasses 9,027 hectares (22,306 acres) in the Pocitos Salar Basin in Salta Province, Argentina.
The Cruz Property is contiguous to the southern limit of the Salar del Rincón Basin, where ADY Resources Limited is extracting lithium brine, and the northern limit of the Pocitos Salar Basin, where the Cruz property is located. Both properties lie along the structural belt that hosts the important lithium resources of the region, and at the junction of a large north-south fault system and the northwest-southeast megastructure along which lies the Rincon volcano, the possible source of the lithium brine in both salar basins. The 60-kilometre long Pocitos salar basin has previously only 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 Pocitos basin. The hole that produced the best results is near the southeast edge of the Cruz property boundary, and averaged 417 parts per million lithium. Although these results are considered historical and have not been verified by the Company’s QP, the Company considers these results relevant to the future exploration of the Cruz property.
About Southern Lithium Corp (TSX-V: SNL FSE: SL5)
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 strategy to develop a portfolio of technically superior Lithium projects. The Company’s main objective is to add shareholder value through successful exploration and development of high quality resources through strategic acquisitions, combined with 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 lithium projects. The Company is only focusing on projects of the highest technical merit in favorable geopolitical jurisdictions.
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”).
ON BEHALF OF THE BOARD OF DIRECTORS
“Clive H. Massey”
Chief Executive Officer
For further information, please contact:
Southern Lithium Corp.
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.