(TheNewswire)
Vancouver, BC - TheNewswire - March23 rd , 2022 - Recharge Resources Ltd. (“Recharge” or the “Company”)( CNSX: RR . CN ) ( OTC: SLLTF ) is pleased toannounce that it has signed an option agreement(the “Agreement”) with Spey Resources Corp. (SPEY: CSE)(“Spey”) whereby the Company may acquire up to a 100% undividedinterest in the Pocitos 1 Project, an 800 hectare lithium brineproject located just outside of Salta, Argentina (the “Project”).(See Figure 1 below).
Figure 1 – Pocitos 1 Lithium BrineMap
CEO and director, Yari Nieken, states," This advanced stagelithium brine project springboards Recharge’s portfolio of batterymetals projects ahead significantly. We look forward to working withthe geological team in Argentina to quickly advance this excitingproject. We are fortunate to have boots on the ground and localexpertise in place for Pocitos I and we look forward to an upcomingdrilling campaign. "
The Project is located approximately 10km from thetownship of Pocitos where there is gas, electricity, and telephoneinternet services. Pocitos I is approximately 800 hectares and isaccessible by road. Previous exploration and development teams havespent over USD $1.5 million exploring the project, including surfacesampling, trenching, TEM geophysics and drilling two 400m holes thathad outstanding results. Locations for immediate follow up drillinghave already been designed and identified for upcomingexploration.
Lithium values of up to 125ppm from Laboratory analysisconducted by Alex Stewart were recorded by A.I.S. Resources Ltd duringtheir drill campaign in May 2018 using a double packer in HQ Diamonddrill holes to a depth of 409 metres and the flow rate of the holeexceeded 75,000 Litres per minute and continued for more than 5 hours.Both drill holes had exceptional brine flow rates. Recharge’s planis to sample the current drill holes and drill a further two holes towork towards a NI 43-101 resource calculation.
Transaction
Under the terms of the Agreement, Recharge may acquirean 80% undivided interest in the Project bypaying to Spey cash and share payments totaling US$1,750,000 andincurring US$250,000 in exploration expenditures on the Property, asfollows:
DATE FOR COMPLETION | CASH PAYMENT | COMMON SHARES | WORK EXPENDITURES |
Within 3 business days of the signing ofAgreement | US$350,000 | US $400,000 | |
On the 12-month anniversary of the signing ofAgreement | US$500,000 | US$500,000 | |
Within 12 months of the signing of Agreement | - | US$250,000 | |
TOTAL | US$850,000 | US$900,000 | US$250,000 |
The Company may earn an additional 20% undividedinterest in the Project, for a total of 100% interest, by paying Speyan additional US$6,000,000 by the fifth anniversary of the optionagreement.
A royalty of 7.5% of the FOB price of lithium carbonateor other lithium compounds sold on the Project shall remain payablepursuant to an underlying agreement. All common shares issued underthe Agreement will be subject to a 4 month hold period underapplicable Canadian securities laws.
Qualified Person
Phillip Thomas, BSc Geol, MBusM, FAusIMM, MAIG, MAIMVA,(CMV), a Qualified Person as defined under NI 43-101 regulations, hasreviewed the technical information that forms the basis for portionsof this news release, and has approved the disclosure herein.
About Recharge Resources
Recharge Resources is a Canadian mineral explorationcompany focused on exploring and developing the production ofhigh-value battery metals to create green, renewable energy to meetthe demands of the advancing electric vehicle and fuel cell vehiclemarket.
On Behalf of the Board of Directors,
“Yari Nieken”
Yari Nieken, CEO
For further information, pleasecontact:
Recharge Resources Ltd.
Mr. Joel Warawa
Phone: 778-588-5473
E-Mail: info@recharge-resources.com
Website: recharge-resources.com
Neither the Canadian Securities Exchange nor itsRegulation Services Provider (as that term is defined in the policiesof the CSE) accepts responsibility for the adequacy or accuracy ofthis release.
Disclaimer for Forward-LookingInformation
Certain statements in this releaseare forward-looking statements, which reflect the expectations ofmanagement regarding Recharge’s intention to continue to identifypotential transactions and make certain corporate changes andapplications. Forward looking statements consist of statements thatare not purely historical, including any statements regarding beliefs,plans, expectations or intentions regarding the future. Suchstatements are subject to risks and uncertainties that may causeactual results, performance or developments to differ materially fromthose contained in the statements. No assurance can be given that anyof the events anticipated by the forward-looking statements will occuror, if they do occur, what benefits Recharge will obtain from them.These forward-looking statements reflect managements’ current viewsand are based on certain expectations, estimates and assumptions whichmay prove to be incorrect. A number of risks and uncertainties couldcause actual results to differ materially from those expressed orimplied by the forward-looking statements, including Recharge’sresults of exploration or review of properties that Recharge doesacquire. These forward-looking statements are made as of the date ofthis news release and Recharge assumes no obligation to update theseforward-looking statements, or to update the reasons why actualresults differed from those projected in the forward-lookingstatements, except in accordance with applicable securitieslaws.
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