VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 23, 2017) - Millennial Lithium Corp. (TSX VENTURE:ML)(FRANKFURT:A3N2)(OTCQB:MLNLF) ("Millennial" or the "Company") is pleased to announce that it has entered into a Mineral Property Option Agreement dated May 19, 2017 (the "Option Agreement") with Liberty One Lithium Corp. (TSX VENTURE:LBY )("Liberty") to joint venture up to an 80% interest in the Pocitos West Project (the "Property") consisting of 15,857 hectares (39,183 acres) of prospective lithium brine exploitation concessions on the Pocitos Salar in Salta Province, Argentina (the "Transaction").
As consideration for grant of the option and pursuant to the terms of the Option Agreement, Liberty will pay Millennial aggregate cash consideration of US$5,500,000 and incur an aggregate of $1,000,000 of staged expenditures to earn a 70% interest in the Property as follows:
| Date | Cash Consideration | Work Obligation | ||
| On execution of Option Agreement | US$17,500 | Nil | ||
| On the Closing Date | US$582,500 | Nil | ||
| On or before 13 months from Closing Date | US$600,000 | Nil | ||
| On or before 18 months from Closing Date | US$600,000 | Nil | ||
| On or before 24 months from Closing Date | US$600,000 | $500,000 | ||
| On or before 30 months from Closing Date | US$600,000 | Nil | ||
| On or before 36 months from Closing Date | US$2,500,000 | $500,000 |
Liberty has the option to earn a further 10% interest in the Property if it completes a bankable commercial feasibility study on the Property within 42 months of the closing of the Transaction.
The Pocitos West Project is located 160km from Salta, and approximately 40 km due west of Millennial's flagship Pastos Grandes Project. The Property 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. The Property 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 Transaction is subject to certain closing conditions, including, the approval of the TSX Venture Exchange (the "TSXV"). There can be no assurance that the Transaction will close as proposed or at all.
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.
