LITH:CC - Lithium Chile Signs Definitive Agreement To Option 50.01% of the Salar de Turi Project Chile to Monumental Minerals
(TheNewswire)
CALGARY, ALBERTA – TheNewswire - October 6, 2022 – Lithium Chile Inc.(“Lithium Chile” or the “Company”) (TSV:LITH) (OTC:LTMCF) is pleased to announce that the Company has entered into anarm’s length definitive option agreement dated October 5, 2022 (the“ OptionAgreement ”) with Monumental Minerals Corp.(“ Monumental ”) whereby Monumental may acquire a 50.01% interestin the Salar de Turi Project (the “ Project ”) located within the prolific Lithium Triangleabout 120 km northwest from the Company’s Salar de Laguna BlancaProject and 60 km northeast from the city of Calama, Chile.
The Turi Project is located within the prolific lithiumtriangle, a zone within the central Andes high desert that includesChile, Argentina, and Bolivia. This zone is estimated to contain morethan half of the world’s lithium supply beneath the many salt flats,also known as salars, that are common to the region. The Turi Projectis comprised of 40 exploration concessions totaling 8,500 hectares(Figure 1), 100% owned by Lithium Chile through its wholly ownedChilean subsidiary Minera Kairos Chile Limitada (“ Minera Kairos ”).The Turi Project is accessible from the city of Calama (60 km to thesouthwest) via the paved roads 21CH, and B-165 and is close toinfrastructure. Travel time from Calama to the Turi Project isapproximately 1 hour (see news release dated August 23, 2022 fordetails and map).
Steve Cochrane, President and CEO comments “Thesigning of the Turi Option Agreement demonstrates Lithium Chilesconfidence in Monumental’s ability to add value through theexploration of another property in Chile. This Joint Venture expandsour relationship with a strong team, but also meets the strategic goalof moving the Company’s Chilean projects forward, while our teamfocuses on our Phase Two drilling Program in Argentina”.
Terms of the Option Agreement
In order to exercise the option to acquire a 50.01%interest in the Turi Project, Monumental must issue common shares,make certain staged cash payments to Lithium Chile, and incurexploration expenditures on the Turi Project as follows:
(a) make cash payments of an aggregate ofC$700,000 according to the following schedule:
(i) $200,000 within five days of TSX VentureExchange (the “ Exchange ”) approval of the Option Agreement(the “ AcceptanceDate ”);
(ii) $250,000 on or before the fourteenthmonth anniversary of the Acceptance Date; and
(iii) $250,000 on or before the secondanniversary of the Acceptance Date.
(b) incur minimum expenditures on the TuriProject of not less than an aggregate of C$1,400,000 according to thefollowing schedule:
(iv) $700,000 on or before the firstanniversary of the Acceptance Date; and
(v) $700,000 on or before the secondanniversary of the Acceptance Date.
(c) issue and deliver to Lithium Chile, thatnumber of common shares of Monumental that would result in LithiumChile holding, on a non-diluted basis, 9.9% of the issued andoutstanding common shares of Monumental (the “ Payment Shares ”),within ten days of the earlier of the closing date of Monumental’snext equity financing and fourteen months following the AcceptanceDate. The issuance of the Payment Shares are subject to Exchangeapproval.
In addition to the statutory hold period of four monthsand one day from the date of issuance, the Payment Shares will besubject to a 12-month voluntary hold period from the date of issuance.Upon Monumental earning a 50.01% interest in the Turi Project,Monumental and Lithium Chile will use commercially reasonable effortsto negotiate and execute a joint venture agreement for the purpose ofjointly carrying out exploration, evaluation and development of theTuri Project. The Option Agreement remains subject to Exchangeapproval.
Lithium Chile also announces, subject to regulatoryapproval, it has granted 700,000 stock options to consultants of theCompany. The stock options are issued with an exercise price of $0.77and will expire October 6, 2023.
About Lithium Chile
Lithium Chile is advancing a lithium property portfolioconsisting of 84,478 hectares covering sections of 11 salars and 2laguna complexes in Chile and 23,300 hectares in Argentina.
Lithium Chile also owns 5 properties, totaling 21,329hectares that are prospective for gold, silver and copper. Explorationefforts are continuing on Lithium Chile’s Carmona gold/silver/copperproperty which lies in the heart of the Chilean mega 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 or Michelle DeCecco, Vice President of CorporateDevelopment via email michelle@lithiumchile.ca or at403-390-9095.
Forward Looking Statements
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATIONSERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSXVENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACYOF THIS RELEASE.
NOT FOR RELEASE IN THE UNITED STATES
This news release may contain certain forward-lookinginformation and forward-looking statements within the meaning ofapplicable securities legislation (collectively "forward-lookingstatements"). Generally, forward-looking statements can beidentified by the use of forward-looking terminology such as"expected", "anticipated", "aims to","plans to" or "intends to" or variations of suchwords and phrases or statements that certain actions, events orresults "will" occur. Such forward-looking statements arebased on various assumptions and factors that may prove to beincorrect, including, but not limited to, factors and assumptions withrespect to: the general stability of the economic and politicalenvironment in which the Company operates; the timely receipt ofrequired regulatory approvals; the risk that the new lithiumexploration tender processes does not yield the anticipated benefitsto the Company; the ability of the Company to obtain future financingon acceptable terms; currency, exchange and interest rates; operatingcosts; the success the Company will have in exploring its prospectsand the results from such prospects and the COVID-19 pandemic. LFG.You are cautioned that the foregoing list of material factors andassumptions is not exhaustive. Although the Company believes that theassumptions and factors on which such forward-looking statements arebased upon are reasonable, undue reliance should not be placed on theforward-looking statements because the Company can give no assurancethat they will prove to be correct or that any of the eventsanticipated by such forward-looking statements will transpire oroccur, or if any of them do so, what benefits the Company will derivethere from. The Company does not undertake to update anyforward-looking statements herein, except as required by applicablesecurities laws. All forward-looking statements contained in this newsrelease are expressly qualified by this cautionary statement.
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