NRG Metals: Property Updates and Consulting Agreements Hombre Muerto North Lithium Project
VANCOUVER, Sept. 25, 2018 /CNW/ - NRG Metals Inc. ("NRG" or the "Company") (TSX-V: NGZ) (OTCQB: NRGMF) (Frankfurt: OGPN) The Company is pleased to announce that it has completed the third installment of it's purchase option for the Hombre Muerto North Lithium Project (" HMN Project "), located in Salta Province, Argentina. A payment of $ US 250,000 and one million common shares have been made to the vendor as per the contract terms. The vendor has also become an insider of the Company as defined by Canadian securities regulations. The Company has now completed an extensive evaluation of the HMN Project, and intends to announce a maiden resource estimate in the immediate future through the release of an independent NI43-101 technical report.
The HMN Project is strategically located in the Hombre Muerto Salar, an area of lithium production by FMC at the Fenix Lithium Mine, some 12 kilometers south of the project area. The project is surrounded by ground now owned by POSCO, a Korean based conglomerate, as a result of their $ US 280 million purchase of the area from Galaxy Resources Ltd, an Australian based producer. Galaxy is also moving their portion of the Hombre Muerto Salar, the Sal de Vida Project, to lithium production.
Salar Escondido Update
The Company has completed a technical review of exploration results to date at the Salar Escondido Project, located in Catamarca Province, Argentina. Two holes have been attempted at this large project area, and drilling has proven to be very challenging. The presence of lithium in highly permeable host rocks was confirmed in both holes, but there was considerable variation in lithium grades and Mg/Li ratios. No representative sample to target depth has been obtained to date, and only a small portion of the project area has been drill tested.
The project is comprised of five underlying agreements. One has been terminated, relinquishing approximately 3,000 hectares of the 29,000 hectare total. As a completion of an option commitment on part of the Luz Maria claim group, the Company is issuing 420,000 shares to the underlying owner. Management are in discussions regarding the project, and anticipate further developments in the near future.
Consulting Agreements
The Company has entered into two consulting agreements with Market IQ Media Group Incorporated ("Market IQ") and VibraSlim Sales Inc. ("Vibraslim'). Each of the consultants were retained to provide digital marketing primarily using Google ads, digital media, corporate advisory, branding and strategic business services to the Company over a four-month period for consideration of $400,000 to Market IQ and $100,000 to VibraSlim. The Company prepaid the total amount of $500,000 to these two entities using cash on hand. Market IQ is located in Vancouver B.C. and owned by Brady Middleditch. VibraSlim is located in Vancouver B.C. and owned by Chris Jackson.
Subsequent to the entry into the consulting agreements, MarketIQ and VibraSlim subscribed for 2,000,000 units of the Company in the above-mentioned private placement for total subscription amount of $500,000. The Company has received full payment for the private placement units from these two entities by cheque.
The TSX Venture Exchange has not reviewed the content of this news release and therefore does not accept responsibility or liability for the adequacy or accuracy of the contents of this news release.
This news release contains certain "forward- looking statements" within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward- looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward looking statements. The reader is cautioned not to place undue reliance on forward- looking statements. The transaction described in this news release is subject to a variety of conditions and risks which include but are not limited to: regulatory approval, shareholder approval, market conditions, legal due diligence for claim validity, financing, political risk, security risks at the property locations and other risks. As such, the reader is cautioned that there can be no guarantee that this transaction will complete as described in this news release. We seek safe harbor.
