VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 12, 2017) - Alset Energy Corp. (TSX VENTURE:ION) ("Alset" or "the Company") is pleased to announce that, subject to regulatory approval, it will accelerate the exercise of its earn in option to acquire the Mexican salar project. Alset and MKG Mining have agreed to amend the original agreement that would have taken a further 5 years for Alset to earn a 100% interest through staged cash payments totaling USD $190,000. It has now been agreed by the parties that MKG Mining will accept shares of the Company instead of cash.
Allan Barry Laboucan, President and CEO of Alset Minerals said: "I'm very pleased to have come to an agreement with the MKG Mining team to expedite the 100% earn in, on our Mexican salars for a number of reasons. Instead of making cash payments we will conclude the earn-in option with a stock payment, which frees up cash for exploration work. Key members of the MKG Mining team are crucial to our success as they help with permitting, local business efforts, and geological input. This agreement gives them a meaningful shareholding in Alset and makes them a financially vested part of our team. Finally, we will no longer have a long-term cash obligation on our exceptional projects and will have a 100% interest."
Terms of the Deal
In the original option agreement, Alset Energy had the right to earn a 100% interest in MKG's interest in the project, subject to an aggregate 2.50% NSR, by paying USD $210,000 over a five-year period plus value added tax (VAT) of 16%.
Under the amended agreement, Alset Energy will instead pay the remaining USD $190,000 and VAT owed by issuing 2,101,514 shares at a deemed price of $0.14 per share (the "Shares"). The Shares will have a standard 4-month regulatory hold period.
Upon issuance of the Shares, Alset will have fulfilled its earn in option and, subject to an aggregate 2.50% NSR, will own a 100% interest in these exciting group of high-grade lithium-potassium salars in the Central Mexican Plateau. This area has been identified in past work by the Servicio Geologico Mexicano as the most prospective region in Mexico for lithium and potassium in salars.
About Alset Energy (ION.V)
Alset Energy is a TSX-V listed junior exploration company focused on exploring and development of a group of high-grade lithium and potassium projects in the Central Mexican Plateau. The Company is actively exploring in Mexico and Canada.
