Vancouver, BC (FSCwire) - Voltaic Minerals Corp. (TSXV: VLT, FSE: 2P61) (the “Company” or “Voltaic”) is pleased to announce that it has entered into a 50/50 joint-venture (the “JV”) agreement with Equitorial Exploration Corp. (TSXV: EXX) (“Equitorial”) for the Green Energy Lithium Project in Utah, USA. The agreement is subject to the approval of the TSX Venture Exchange.
As per the agreement, Equitorial will have the right to participate, on a 50/50 basis, in all work relating to the Green Energy Project. For this right, Equitorial will invest $250,000 into Voltaic via private placement, on terms described in this press release. Equitorial will also reserve 5,000,000 shares of Equitorial Exploration Corp. and issue them upon successful production of Lithium from Green Energy Project brine, using Voltaic’s Lithium Process. Voltaic is currently finalizing an exclusive right of use with its inventors. The JV will have the right to utilize the Selective Lithium Process on the Green Energy Lithium Property and any other project that it deems suitable on a project by project basis. Equitorial and Voltaic intend to work to locate other projects that would be suitable for the Process and proceed on a 50/50 JV basis. A finder’s fee may be payable on the Equitorial portion of the investment.
Green Energy Lithium Project
The Green Energy Lithium Project property encompasses 4,160 acres and is located 30 miles west of the city of Moab, Utah. Saturated brines (40% minerals, 60% water) were discovered during historic oil exploration when drill wells intercepted Clastic Unit #14 of the Paradox Formation. Upon interception of Clastic Unit #14, at depths of approximately 6,000 feet, the exploration wells encountered blow-outs due to the over-pressurized system. Historic fluid analysis of the saturated brines on the Green Energy Project ranged from 81-174 mg/L Lithium; and as high as 1,700 mg/L, from the same Clastic Unit #14, less than 900m to the east-northeast on an adjacent property . Approximately 20 wells were drilled on the Green Energy Project, of which, 5 have analytical data for Lithium.
Engineering reports from the 1960s concluded that the brine reservoir is extensive (over 10 square miles) and is recharged from fresh in-flows as indicated by well pressure measurements, drawdown tests and oxygen-deuterium isotopes. Clastic Unit #14 consists of 30 feet of shale, anhydrite and dolomite, and is not part of any oil reservoir.
Voltaic Minerals Corp. has conducted a review of recent and historic well logs, along with chemical analysis in the area and reprocessing of seismic data focusing on mineral brine. Evaluation of reservoir potential will be done in preparation for the re-entry of shut-in wells.
Voltaic Mineral Corp. disclosure of a technical or scientific nature in this press release has been reviewed and approved by Rory Kutluoglu, P.Geo., who serves as a Qualified Person under the definition of National Instrument 43-101.
Financing & Use of Proceeds
The Company also announces that it has proposed a non-brokered private placement (the “Private Placement”) of up to 15,000,000 units (the “Units”) at a price of $0.06c per Unit for total aggregate proceeds of up to $900,000. Each Unit will consist of one common share (each, a “Share”) and one-half-of-one share purchase warrant (a “Warrant”). Each whole Warrant shall be exercisable to acquire one additional common share of the Company (a “Warrant Share”) at a price of $0.12 per Warrant Share for a period of 36 months after issuance.
The proceeds from the Unit sale will be used by the company to fund exploration on the Green Energy Project and advancement of the Lithium Selective Process. The Private Placement is subject to acceptance by the TSX Venture Exchange. All the securities issued under the Private Placement are subject to resale restrictions under applicable securities legislation.
Update on Lithium Selective Process
The Company is finalizing its exclusive right to use a proprietary Lithium extraction process. Provided the agreements are signed as scheduled, the Company expects to begin Phase I work as early as February 2017 with initial results expected within 90 days of finalizing the definitive agreement.
Stock Options
The Company has granted a total of 1,500,000 options to directors, employees and consultants exercisable for 5 years at a price of $0.075 per share.
About Voltaic Minerals Corp.
Voltaic Minerals Corp. is a Vancouver-based Lithium exploration company which, in joint-venture with Equitorial Exploration Corp., owns 100% of the Green Energy Lithium Project. The Green Energy Project encompasses 4,160 acres of Bureau of Land Management (BLM) claims, and is located in Grand County, Utah, 30 miles west of the city of Moab. Lithium and other minerals occur at the project in an over-saturated brine (40% minerals, 60% water) discovered during oil exploration when drill wells intercepted Clastic Bed #14 of the Paradox formation.
