LITH:CC - LITHIUM CHILE INC Welcomes Signing of Definitive Agreement with Monumental Minerals Corp to Jointly Develop Lithium Chiles Laguna Blanca Property
(TheNewswire)
CALGARY, ALBERTA – TheNewswire- March 31, 2022 – Lithium Chile Inc. (TSXV:LITH) (OTC:LTMCF) (“ LithiumChile ” or the “ Company ”) is pleased to announce that the Company has enteredinto an arm’s length definitive option agreement dated March 30,2022 (the “ OptionAgreement ”) with Monumental Minerals Corp.(“ Monumental ”) (TSX-V: MNRL; FSE: BE5) to earn up to 75% of the 5,200hectare Salar De Laguna Blanca project (the “ Laguna Project ”)located near the town of San Pedro de Atacama, Chile (see news releasedated March 9, 2022).
The Laguna Project is located within the prolificlithium triangle, a zone within the central Andes high desert thatincludes Chile, Argentina, and Bolivia. This zone is estimated tocontain more than half of the world’s lithium supply beneath themany salt flats, also known as salars, that are common to theregion. The Laguna Blanca property consists of23 exploration concessions totaling 5,200 hectares, 100% owned byLithium Chile through its wholly owned Chilean subsidiary MineraKairos Chile Limitada. The Laguna Project includes both active andpaleo salar brines and salts.
Steve Cochrane, President & CEO comments, “We are extremely pleasedto have this joint venture with Monumental on our Laguna Blancaprospect. With our energies currently focused on expanding our lithiumresource on Salar de Arizaro property in Argentina, this joint venturewill ensure work continues on one of our Chilean properties. Theexperience and expertise Monumental’ s team gained from working onAdvantage Lithium’s project in Argentina will be invaluable inadvancing the Laguna Blanca project.”
Terms of the Option Agreement
In order to exercise the option to acquire a 75%interest in the Laguna Project, Monumental must issue common shares,make certain staged cash payments to Lithium Chile and incurexploration expenditures on the Laguna Project as follows:
a. Make cash payments of anaggregate of Cad$1,500,000 according to the following schedule:
1. $200,000 withinthirty (30) days of final TSX Venture Exchange approval of this proposed transaction (the “ Acceptance Date ”);
2. $250,000 on orbefore the eighteen (18) month anniversary of the AcceptanceDate;
3. $300,000 on orbefore the second anniversary of the Acceptance Date; and
4. $750,000 on orbefore the third anniversary of the Acceptance Date.
b. Incur minimum expenditures onthe Laguna Project of not less than an aggregate of Cad$1,500,000 according to the following schedule:
1. $200,000 on orbefore the first anniversary of the Acceptance Date;
2. $500,000 on orbefore the second anniversary of the Acceptance Date; and
3. $800,000 on orbefore the third anniversary of the Acceptance Date.
c. Within thirty (30) days of theAcceptance Date, issue 3,401,874 common shares of Monumental toLithium Chile (the “ PaymentShares ”). The number ofPayment Shares will be reduced if required by the Exchange.
Subject to the exercise of the option to acquire 75% ofthe Laguna Project, Lithium Chile would retain a 1% net smelterreturns royalty payable upon the commercial production of the LagunaProject. In addition to the statutory hold period of four months and aday from the date of issuance, the Payment Shares will be subject to a12-month voluntary hold period from the date of issuance. UponMonumental earning a 75% interest in the Laguna Project, Monumentaland Lithium Chile will use commercially reasonable efforts tonegotiate and execute a joint venture agreement for the purpose ofjointly carrying out exploration, evaluation and development of theLaguna Project.
The transaction between Monumental and Lithium Chile issubject to TSX Venture Exchange approval.
About Lithium Chile
Lithium Chile is advancing a lithium property portfolioconsisting of 69,200 hectares covering sections of 10 salars and twolaguna complexes in Chile and 23,300 hectares in Argentina.
Lithium Chile also owns 5 properties, totaling 20,429hectares, that are prospective for gold, silver and copper.Exploration efforts are continuing on Lithium Chile’s Carmonagold/silver/copper property which lies in the heart of the Chileanmega porphyry gold/ silver/copper belt.
Lithium Chile’s common shares are listed on the TSX-Vunder the symbol “ LITH ” and on the OTC-BB under the symbol“ LTMCF ”.
To find out more about Lithium Chile Inc., pleasecontact Steven Cochrane, President and CEO via email: steve@lithiumchile.ca , Jose de CastroAlem, Argentina Manager via email jdecastroalem@gmail.com or Michelle DeCecco, Vice President of CorporateDevelopment via email michelle@lithiumchile.ca orat 403-390-9095.
NEITHER THE TSXVENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM ISDEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTSRESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Forward Looking Statements
This news release may contain certainforward-looking information and forward-looking statements within themeaning of applicable securities legislation (collectively"forward-looking statements"). Generally, forward-lookingstatements can be identified by the use of forward-looking terminologysuch as "expected", "anticipated", "aimsto", "plans to" or "intends to" or variationsof such words and phrases or statements that certain actions, eventsor results "will" occur. In particular, this news releasecontains forward-looking statements relating to, the entering into ofdefinitive agreements and regulatory body approvals. Suchforward-looking statements are based on various assumptions andfactors that may prove to be incorrect, including, but not limited to,factors and assumptions with respect to: the general stability of theeconomic and political environment in which the Company operates; thetimely receipt of required regulatory approvals; the ability of theCompany to obtain future financing on acceptable terms; currency,exchange and interest rates; operating costs; the success the Companywill have in exploring its prospects and the results from suchprospects. You are cautioned that the foregoing list of materialfactors and assumptions is not exhaustive. Although the Companybelieves that the assumptions and factors on which suchforward-looking statements are based are reasonable, undue relianceshould not be placed on the forward-looking statements because theCompany can give no assurance that they will prove to be correct orthat any of the events anticipated by such forward-looking statementswill transpire or occur, or if any of them do so, what benefits theCompany will derive there from. Actual results could differ materiallyfrom those currently anticipated due to a number of factors and risksincluding, but not limited to: fluctuations in market conditions,including securities markets; economic factors; the risk that the newlithium or cesium exploration tender processes does not yield theanticipated benefits to the Company, including the risk that theCompany will not receive the approvals necessary and the impact ofgeneral economic conditions and the COVID-19 pandemic. The Companydoes not undertake to update any forward-looking statements herein,except as required by applicable securities laws. All forward-lookingstatements contained in this news release are expressly qualified bythis cautionary statement.
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