Vancouver, British Columbia--(Newsfile Corp. - December 21, 2017) - Millennial Lithium Corp. (TSXV: ML) (FSE: A3N2) (OTCQB: MLNLF) ("Millennial" or the "Company") is pleased to report that on December 21, 2017 it has entered into the final agreement (the "Final Agreement") with the Salta Provincial Energy and Mining Company ("REMSA") for the acquisition of 2,492 hectares of claims (the "REMSA Ground") strategically located in the Pastos Grandes Salar and contiguous with Millennial's current land holdings there. Completion of the acquisition will bring the Company's holdings at Pastos Grandes to a total of 8,664 hectares. The award of the REMSA Ground to the Company, and the terms of that award and acquisition, were disclosed in the Company's news release dated August 24, 2017. The process for entering into the Final Agreement was further detailed in the Company's news release dated September 1, 2017.
Farhad Abasov, President and CEO of Millennial, commented, "We are very pleased to have finalized the agreement with REMSA. Our previous drill campaign in the southern section of our existing Pastos Grandes ground adjacent to the northern section of the REMSA ground will guide our intensive exploration and development program to commence next year. We are excited about the potential of this new ground and look forward to launching our technical programs on this ground."
Amendments to the Cauchari East Option Agreement
The Company also wishes to announce that it has agreed to amend the terms of its agreement (the "Cauchari East Agreement") by which it can acquire a 100% interest in the Cauchari East Lithium Project. The Cauchari East Agreement was first announced on September 26, 2016 with additional disclosure in the Company's news release dated September 28, 2016.
Under the original terms of the Cauchari East Agreement, Millennial could acquire a 100% interest in the Project, royalty and easement free, in consideration of the following payments, share issuances and work commitments:
(a) to earn a 50% interest in the Property:
(i) pay to the Optionor $250,000 upon execution of this Agreement (paid);
(ii) issue to the Optionor $500,000 worth of Millennial common shares within ten (10) business days of the date of TSX Venture Exchange approval (the "Approval Date") of this Agreement (completed);
(iii) pay to the Optionor an additional $750,000 on or before the first anniversary of the Approval Date;
(iv) issue to the Optionor an additional $1,000,000 worth of Millennial common shares on or before the first anniversary of the Approval Date; and
(v) make $2,000,000 in Expenditures on or before the first anniversary of the Approval Date unless another date is agreed by the parties.
(b) to earn the remaining 50% interest in the Property, make the following additional payments, share issuances and Expenditures:
(i) pay to the Optionor $1,000,000 on or before the third anniversary date of the Approval Date;
(ii) issue to the Optionor $1,000,000 worth of Millennial common shares on or before the third anniversary date of the Approval Date; and
(iii) make an additional $2,000,000 in Expenditures on or before the third anniversary of the Approval Date.
Upon acquisition of a 100% interest, the vendor was to retain a 3.5% GOR which could be reduced to 1.5% with payment of USD$2,000,000.
The amended terms of the Cauchari East Agreement are as follows:
- The 3.5% GOR is now a 3.5% NSR with the reduction to 1.5% upon payment of USD$2,000,000 to the vendor being unchanged;
- Option to pay the US$1,750,000 total in (a)(iii) and (iv) in cash rather than cash and shares;
- Option to pay the US$2,000,000 in (b)(i) and (ii) in cash rather than cash and shares; and
- There are no longer any minimum expenditures requirements (the expenditure requirements in (a)(v) and (b)(iii) have been eliminated).
