LITH:CC - Lithium Chile Signs Letter of Intent to Option 50.01% of the Salar de Turi Project Chile to Monumental Minerals
(TheNewswire)
CALGARY, ALBERTA – TheNewswire - August23, 2022 – Lithium Chile Inc. (“ Lithium Chile ” orthe “ Company ”) (TSX:LITH) (OTC:LTMCF) is pleased to announce that it has signed aletter of intent (“ LOI ”) with Monumental Minerals Corp.(“ Monumental ”), whereby Monumental may acquire a 50.01% interest in theSalar de Turi Project (the “ Project ”) located within the prolificLithium Triangle about 120 km northwest from the Company’s Salar deLaguna Blanca Project and 60 km northeast from the city of Calama,Chile.
To earn the 50.01% interest in the Project, Monumentalmust pay Lithium Chile C$700,000 over two years, incur minimumexpenditures on the Project of C$1.4 million over two years and issueto Lithium Chile that number of common shares of Monumental that wouldresult in Lithium Chile holding, on a non-diluted basis, 9.9% of theissued and outstanding common shares of Monumental after completion oftheir next financing.
The Lithium Triangle is an area within the centralAndes high desert that includes Chile, Argentina, and Bolivia (Fig. 1)and is estimated to contain more than half of the world’s lithiumsupply beneath the many salt flats, also known as salars, that arecommon to the region. The Project is comprised of 31 explorationconcessions totaling 8,500 hectares, 100% owned by Lithium Chilethrough its wholly owned Chilean subsidiary Minera Kairos ChileLimitada (“Minera Kairos”). The Project is accessible from thecity of Calama via the paved roads and is close to infrastructure.
Figure 1. Location of the Salar deTuri Project and the 31 claims (8,500 hectares) that it encompasses.Map also includes the transient electromagnetic (TEM) survey lines (L1to L5) contracted by Lithium Chile in 2019.
Jamil Sader, CEO and Director of Monumental Mineralscomments “The relationship we have built with Lithium Chilecontinues to develop into a growing joint effort to advance high valuesalars towards a lithium brine resource. The Salar de Turi Projectrepresents a great opportunity, with highly compelling geophysics andgeochemistry, excellent infrastructure, and year-round access.Monumental plans to move forward with exploration activities with thesame vigour as we have with our other two critical metals projects,Laguna Blanca lithium brine, and Jemi heavy rare earthelements.”
Steve Cochrane,President & CEO of Lithium Chile comments “During a recent tripto Chile, I met with Monumental Minerals technical and socialgovernance team, and I feel that they have the capability asdemonstrated with Laguna Blanca, to advance the Salar de Turi Project.This joint venture will benefit both parties substantially withLithium Chile being the largest shareholder of Monumental Minerals.The Joint venture is consistent with our desire to maximize the returnon our Chilean assets while our focus is on our Arizaro Argentiniandevelopment program.”
During 2019, Minera Kairos completed preliminaryreconnaissance and detailed geochemical and geophysicalsurveys:
• Transient electromagnetic (TEM)geophysics exploration work conducted by Lithium Chile delineatedhighly prospective brine aquifers that could contain economic gradesof lithium over a 63 square kilometer (km2) area. These geophysicalanomalies are shallow NE-dipping at 150 – 300 meters (m) belowsurface and are at least 200 to 300 m thick, often open at depth(Lithium Chile Press Release April 30, 2019) (Fig. 2).
• Near surface brine samples demonstratereturn values of lithium to 590 mg/L (Lithium Chile Press Release Jan.16, 2019). The samples also reveal favourable chemistry with ratios oflithium to potassium of 0.06; and magnesium to lithium of 7.8.
Figure 2. Cross-sectional profilesof the TEM surface contracted by Lithium Chile in 2019.
Terms of the Proposed Transaction
Subject to the execution of a definitive agreement(“Definitive Agreement”), Monumental will have the option toearn-in a 50.01% interest in the Project by making certain staged cashpayments and issuing common shares to Lithium Chile and incurringexploration expenditures on Project as follows:
(a) Make cash payments of an aggregate ofC$700,000 according to the following schedule:
(i) $200,000 upon final TSX Venture Exchangeapproval of this proposed transaction (the “AcceptanceDate”);
(ii) $250,000 on or before the fourteenth(14) month anniversary of the Acceptance Date; and
(iii) $250,000 on or before the secondanniversary of the Acceptance Date.
(b) Incur minimum expenditures on theProject 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 (10) days of the closing of Monumental’s next completedfinancing (if any occurs) following the Acceptance Date, but no laterthan the twelve (12) month anniversary of the Acceptance Date, unlessotherwise mutually agreed to by both parties.
In addition to the statutory hold period of four monthsand a 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 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 theProject.
The proposed transaction between Monumental and LithiumChile is subject to, among other things, the execution of theDefinitive Agreement and Monumental receiving TSX Venture Exchangeapproval.
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, Jose de Castro Alem, Argentina Manager viaemail jdecastroalem@gmail.com or Michelle DeCecco, Vice President ofCorporate Development 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 lithium or cesiumexploration 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. You arecautioned that the foregoing list of material factors and assumptionsis not exhaustive. Although the Company believes that the assumptionsand factors on which such forward-looking statements are based uponare 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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