VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 30, 2017) - Millennial Lithium Corp. (TSX VENTURE:ML)(FRANKFURT:A3N2)(OTCQB:MLNLF) ("Millennial" or the "Company") reports it has made the initial payments under its option (the "Option") to acquire a 100% interest in the Pocitos West Project ("Pocitos West") consisting of 15,857 hectares (39,183 acres) of prospective lithium brine exploitation concessions on the Pocitos Salar in Salta Province, Argentina. Pocitos West is adjacent to ground recently acquired by Pure Energy Minerals Ltd. and is strategically located in close proximately to known lithium resources including the Rincon Project located 32 kilometres (km) to the north and the Sal De Vida Project 90km to the south. The Option was first announced on February 2, 2017.
Pocitos West is located 160km from Salta, and approximately 40 km due west of Millennial's flagship Pastos Grandes Project where recent drilling has confirmed significant lithium brines from surface to depths of 400 metres. Pocitos West is directly accessible by Salta Provincial Highway 17 and close to other high quality regional and site infrastructure including local labour, rail and power generation.
Millennial and the Vendors of Pocitos West executed a definitive option agreement (the "Agreement") that defines the material terms and conditions of the Option. A non-refundable deposit of $100,000 (the "Deposit") has been paid to the Vendors as has the additional $150,000 (U.S.) (the "First Option Payment") which was due upon receipt of Exchange approval of the Option.
The Option may be exercised within three years by making a total of $4,500,000 (U.S.) in payments (including the Deposit and the First Option Payment) (the "Option Exercise Price"): (i) $250,000 (U.S) six months from the date of the Agreement; (ii) $500,000 (U.S.) twelve months from the date of the Agreement; (iii) $500,000 (U.S.) eighteen months from the date of the Agreement; (iv) $500,000 (U.S.) twenty-four months from the date of the Agreement; (v) $500,000 (U.S.) thirty months from the date of the Agreement; and (vi) $2,000,000 (U.S.) thirty-six months from the date of the Agreement.
Upon payment of the full Option Exercise Price, Millennial will have earned a 100% interest in Pocitos West.
No securities of the Company are to be issued in conjunction with exercise of the Option.
The 60-kilometre-long Pocitos salar basin was previously drill tested by 12 shallow holes in 1979 by an Argentine government agency, the Direccion General de Fabricaciones Militares (DGFM). The most significant result from the historical work program includes a shallow drill hole, which averaged 417 parts per million (ppm) lithium and 15,300 ppm potassium. The results of these holes and the sampling conducted are historical in nature and cannot be confirmed by the Company under National Instrument 43-101 standards of exploration applicable today.
In 2010, Li3 Energy Inc. announced the results of 46 brine samples taken from just below the surface of the salar, with brine assays ranging from 300 ppm to 600 ppm lithium. These samples were taken immediately east of the Pocitos West property. Previous geophysical studies conducted by Li3 Energy Inc. also demonstrate the Pocitos basin, where sampled, is approximately 500 metres deep and that the prospective brine target is open and extends westward toward the Pocitos West property.
This news release has been reviewed by Iain Scarr, AIPG, CPG, who is COO of the Company and a qualified person as that term is defined in National Instrument 43-101.
