MNRL:CC - Monumental Minerals (MNRL.V) Signs LOI for New Lithium Brine Project in Chile
(TheNewswire)
August 24, 2022 - TheNewswire - Global Stocks News - Monumental Minerals (TSXV:MNRL) (FSE:BE5) (OTC:MNMRF) just signed an LOI with LithiumChile to acquire a 50.01% interest in the Salar de TuriProject , located within the famedLithium Triangle about 120 km northwest from the Salar de LagunaBlanca and 60 km northeast from the City of Calama, Chile.
Monumental Minerals is developing raw materials for theglobal energy transition. Upon completion of a definitive agreement,the Salar de Turi project will be added to MNRL’s mineral portfoliowhich includes the Jemi HREE project in Mexico and the Laguna Blancacesium-lithium brine project located in Chile.
The synergies in this LOI are not hard to unpack. Withan interest in 11 salars and 2 laguna complexes in Chile and 23,300hectares in Argentina, Lithium Chile can not simultaneously runexploration programs on all its assets.
"Our technical team identified the Salar de TuriProject as having compelling geophysics and surface geochemistry basedon previous work done by Lithium Chile,” Max Sali, VP of CorporateDevelopment and Director of MNRL explained to GSN.
“We sent the data to Frits Reidel, ManagingDirector of Atacama Water , whospecialises in the evaluation of lithium brine resources,” continuedSali, “The consensus from Mr. Reidel and our CEO Jamil Sader, was,‘this is something we should own’”.
“The negotiations were fairly straight forward,”stated Sali, “We already have a good working relationship with theCEO of Lithium Chile, Steve Cochrane. Their VP of CorporateDevelopment, Michell Dececco is on our board of Directors.”
Monumental Minerals has assembled a strong lithiumbrine exploration team in Chile that has been advancing the LagunaBlanca lithium brine and cesium sediment project.
Recent Laguna Blanca sediment samples returned valuesof 1160 ppm lithium, and 175 ppm cesium. Cesium – a specialisedindustrial lubricant - sells for about $100/gram, making a singlewheelbarrow of Cesium worth $12 million.
The LOI announced August 23, 2022 allows Lithium Chileto retain a 49.99% interest in the Salar de Turi Project while MNRLdeploys its in-country team to unlock the value of the asset.
MNRL’s Lithium Brine Team includes:
Caracle Creek Chile SpA : A local Chilean exploration consulting and projectmanagement group, Caracle has ‘specialized expertise in lithium andrare-element exploration.’
Atacama WaterSpA : Hydrogeological sitecharacterization and brine resource evaluation.
SateliteSpA : Aligns legal, community andenvironmental strategies in order to achieve the development ofsustainable projects in social, technical, environmental and financialterms, with a local vision.
The Salar de Turi Project is located withinChile/Argentina/Bolivia Lithium Triangle, that is estimated to containmore than half of the world’s lithium supply beneath a galaxy ofsalars.
Salar de Turi comprises 31 exploration concessionstotalling 8,500 hectares. The Project is about a1-hour drive from the City of Calama (60 km to the southwest).
“The relationship we have built with Lithium Chilecontinues to develop into a growing joint effort to advance high-valuesalars towards lithium brine resources,” stated Jamil Sader, CEO andDirector of Monumental Minerals.
“The Salar de Turi Project represents a greatopportunity, with highly compelling geophysics and geochemistry,excellent infrastructure, and year-round access,” continued Sadar,“Monumental plans to move forward with exploration activities withthe same vigour as with our other two critical metals projects, LagunaBlanca lithium brine, and Jemi heavy rare earth elements.”
“During a recent trip to Chile, I met with MonumentalMinerals technical and social governance team, and I feel that theyhave the capability as demonstrated with Laguna Blanca, to advance theSalar de Turi Project,” confirmed Steve Cochrane, CEO and Directorof Lithium Chile.
“This joint venture will benefit both partiessubstantially with Lithium Chile being the largest shareholder ofMonumental Minerals,” added Cochrane, “The Joint venture isconsistent with our desire to maximize the return on our Chileanassets while our focus is on our Arizaro Argentinian developmentprogram.”
During 2019, Minera Kairos completed preliminaryreconnaissance and detailed geochemical and geophysicalsurveys.
Transient electromagnetic (TEM) geophysics explorationwork conducted by Lithium Chile delineated highly prospective brineaquifers that could contain economic grades of lithium over a 63square kilometre (km 2 ) area.
These geophysical anomalies are shallownortheast-dipping at 150 – 300 metres (m) below surface and are atleast 200 to 300 m thick, often open at depth.
Near surface brine samples return values of lithium to590 mg/L. The samples also reveal favourable chemistry with ratios oflithium to potassium of 0.06 and magnesium to lithium of 7.8.
Cross-sectional profiles of the TEM surface contractedby Lithium Chile in 2019.
Deal Terms:
Subject to the execution of a definitive agreementMonumental will have the option to earn-in up to a 50.01% interest inthe Salar de Turi Project by cash payments as follows: 1. $200,000 upon regulatory approval of this proposedtransaction, 2. $250,000 14 months later, 3. $250,000 24 months afterthe Acceptance Date.
MNRL must also incur minimum expenditures on the Salarde Turi Project of not less than an aggregate of $1.4 million on thefollowing schedule: 1. $700,000 in the first year, $700,000 in thesecond year.
Monumental will deliver to Lithium Chile, that numberof common shares of Monumental that would result in Lithium Chileholding, on a non-diluted basis, 9.9% of the issued and outstandingcommon shares of Monumental.
With the Laguna Blanca project, Monumental is exploring Direct Lithium Extraction (DLE) , which haslower CAPEX compared to conventional evaporation methods, smallerenvironmental footprint and makes the operationquicker-to-cash-flow.
In this May 2022 interview, CEO Jamil Sader talks toGSN CEO Guy Bennett about the Laguna Blanca project in Chile:
Currently, about 1% of the 250 million vehicles onNorth American roads are electric. An analysis by IHSMarkit projects that 25% of new carsales will be electric by 2030.
Sociedad Química y Minera de Chile (SQM.NYSE) operatesthe nearest producing salar to MNRL’s assets. In its latest quarterlyearnings report , SQM reported lithiumsales revenue rising 1,000% year-on-year to hit USD $1.84 billion,with average prices of USD $54,000 per tonne.
“We're not moving away from Laguna Blanca,”clarified Sali, “We’ve always intended to acquire another Chileanasset. The Salar de Turi Project presents the perfectopportunity.”
Contact: guy.bennett@globalstocksnews.com
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