Noram Ventures Inc. (“Noram”) ((TSX-V: NRM Frankfurt: N7R NRVTF:US) is pleased to announce the signing of a Letter of Intent (the “LOI”) with Alba Minerals Ltd. (“Alba”) (TSX-V: AA.H AXVEF:US) to acquire up to 50% of Noram’s wholly-owned subsidiary Green Energy Resources Inc., which holds lithium brine/clay claims at Clayton Valley, Nevada and the Hector Lode claims in San Bernardino County, California.
Drilling to Begin in December at Clayton Valley
Upon exercising of the initial option payment by Alba, Green Energy Resources will immediately begin a 55-hole drill program on the Clayton Valley North project. This program is designed to demonstrate the existence of a valuable lithium deposit within the property’s prospect area. Permits and essential preparation have been completed for a target encompassing nearly four square miles. Results from the Phase 1 drill program will be incorporated into a resource estimate. An NI 43-101 Technical Report was completed on the 17,738-acre (7,178-hectare) Clayton Valley Property in October of 2016. The report is available on SEDAR and on Noram’s website at www.noramventures.com.
Located Near Nevada Lithium Producer
The perimeter of the Clayton Valley claims is located within 1 mile (1.6 kilometers) of Albemarle Corporation’s lithium brine operations. Lithium is produced at Albemarle’s plant from deep wells that pump brines from the basin beneath the Clayton Valley playa. The plant is the only lithium producer in the United States and has been producing lithium at this location continuously since 1967.
“This joint venture and its key properties establish Alba as a serious and major player in the lithium exploration sector,” said Alba Chairman Sandy MacDougall. “Not only are we launching a major drill program in Nevada’s prime lithium district, we are also preparing to explore our holdings in Salta Province, Argentina, adjacent to world-class lithium projects held by Lithium Americas and Orocobre in one of the world’s leading lithium producing regions.”
Hector Lode Lithium Project
The joint venture also includes Green Energy’s 100%-owned Hector Lode property encompassing 116 lithium mineral claims (2,320 acres) in San Bernardino County, California, where exploration has confirmed the presence of lithium in hectorite clays. Material is currently being mined on adjacent ground as bentonite/hectorite clays. A Phase 1 core drilling program is now under consideration for the property.
The Option to Purchase includes the following terms subject to TSX.V and regulatory approval:
(a) 1st Payment of C$255,000 as follows, C$127,500 on or before December 5th, 2016, and a 2nd payment of C$127,500 on completion of the drilling program in the Clayton Valley to earn a 25% direct interest in Green Energy Inc.;
(b) 2nd Payment of C$200,000 due on or before March 30th 2017 or at such time when a N.I. 43-101 on the drilling results (a) is completed to earn an additional 5%;
(c) 3rd Payment of C$200,000 due on or before May 30th 2017 to earn an additional 5%;
(d) 4th Payment of C$289,500 due on August 25th 2017 to cover Nevada and California annual maintenance fees to earn an additional 10%;
(e) 5th Payment of C$155,500 due on or before November 30th 2017 to earn an additional 5%;
(f) On completion of the 5th payment an issuance of common shares of Alba to Noram in an amount to be determined.
Mark Ireton, President of Noram, said: “We are pleased to have entered into this agreement with Alba, which is another significant step in establishing Noram’s role in the Green Energy Revolution through the development of lithium. The exploration and management team that has been assembled is world class, and we are looking forward to establishing the 2016-17 work programs on our lithium and graphite properties.