VANCOUVER, British Columbia, Aug. 09, 2017 (GLOBE NEWSWIRE) -- Millennial Lithium Corp. (ML.V) (Frankfurt:A3N2:GR) (MLNLF) (“Millennial” or the “Company”) is pleased to report that the Company has successfully participated in a tender process to acquire 2,492 hectares of claims (the “Property”) from The Salta Provincial Energy and Mining Company (“REMSA”). Upon the completion of the tender process, August 01, 2017, Millennial was notified by REMSA that the Pre-Award Committee (the “Committee”) had recommended to REMSA that the minerals investigation area be awarded to Millennial. Final approval by REMSA is expected within the coming weeks.
The Properties are strategically located in the Pastos Grandes Salar, Salta Argentina and are contiguous to Millennial’s current claims. The addition of the tender area brings the Company’s holdings at Pastos Grandes to a total of 8,664 hectares. The Properties are strategically important to Millennial as they are directly adjacent to Millennial’s recent discovery holes, including:
PGMW17-04b – Drilled to a total depth of 564 and terminated in brine bearing sand. Significant assays include 535 mg/l Li over 381.5 meters (93.5 m to 475 m).
PGMW17-05c – Drilled to a total depth 601 meters and terminated in brine bearing sand. Significant assays include 523 mg/l Li over 33 meters (27.5 m to 60.5 m) and 545 mg/l Li over 211.3 meters (381.7 m to 593 m).
Millennial CEO, Farhad Abasov, commented: "We are very pleased to have received the important recommendation of the technical evaluation committee for the REMSA tender. Located directly adjacent to our holding at Pastos Grandes, this area greatly expands the volume of brine aquifer being considered for our ongoing resource estimation. In conjunction with the finalization of the transfer of adjacent areas staked on our behalf by our consultants, Rojas Y Asociados, our holdings in the Pastos Grandes basin total more than 86 square kilometers, a good portion of which we have shown to host a very thick section containing lithium-enriched brine. The consolidation of the Pastos Grandes Salar is a key part of our plan in developing a new lithium producer coming on line in 2020.”
The tender competition, opened in June of this year, was judged on the basis of (i) the relevance of the applicants’ backgrounds and their activities in the Pastos Grandes area, (ii) the proposed first stage program of evaluation of the tender area, (iii) the initial payment (“Initial Payment”) to be made to REMSA on signing the tender contract, and (iv) the overall payment to REMSA.
Millennial’s offer comprised the following:
- Millennial’s extensive background, experienced team and record of success in lithium, development in general and at Pastos Grandes in particular
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A stage 1 spending commitment of US$15.4 million
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US$3,000 per hectare; total purchase price of US$7,476,150
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Initial Down Payment of US$1,869,037.50 (25% of total)
- Payment of US$1,869,037.50 on the First, Second and Third Year Anniversary of signature date
The Committee determined that Millennial presented a superior offer in all four areas and therefore recommended awarding the tender to the Company. If the recommendation of the Committee is ratified by REMSA it will start the process whereby the Company will enter into a definitive agreement with REMSA over the available area comprised in the tender file Nº 22.765. Upon signing the agreement, the Company has the option to apply for the transfer of the individual properties within the investigation area and will at the same time submit an environmental report for the planned exploration and development works. An appeal to the Committee’s recommendations can be filed by competitors in the tender. Once the Committee reviews a potential appeal, its recommendation is final and REMSA’s executive management will issue the final ruling on the award. Further appeals to REMSA’s Authorities’ final decision will not suspend nor interfere with the beginning of the effects of the award and formal property application.
Within 5 business days after the final award is issued, Millennial is obligated to present a warranty covering the obligations under the agreement. The Company has obtained the warranty.
Within 15 business days after the final award is issued, Millennial must sign the final agreement which will trigger the Initial Payment to REMSA. The initial payment has been transferred into the local account for Millennial’s subsidiary, Proyecto Pastos Grandes, S.A.
Within the same 15 day period Millennial must also secure environmental insurance and the final documentation detailed in the Stipulations, and submit the EIR for the Stage I evaluation work program.
Once the EIR is approved one (1) year deadline is triggered for the investment of the US$15.4M Stage I program.
The investment plan for the REMSA tender area includes but is not limited to initial geophysics, expansion of the infill drilling program and potential for resource expansion, pilot evaporation and process testing to include a production scale evaporation pond, environmental baseline studies, an enlarged camp and a serious commitment to the Company's CSR program in the region. This consolidation is a key part of our plan to position Millennial Lithium as a new lithium producer coming on line in the next few years.
The Company would also like to report that three lenders (the "Lenders") who are non-arm's length parties to the Company have loaned (the "Loans") a total of US$2,000,000 (the "Loan Funds") to the Company. The Lenders are: Graham Harris, Director and Chair of the Company (as to US$900,000), Andrew Bowering, Director of the Company (as to US$900,000), and Farhad Abasov, Director and CEO of the Company (as to $200,000). In connection with the Loans, the Company has issued a total of 266,667 common shares (the "Shares") to the Lenders as bonus shares for making the Loans. The Shares carry a four month Exchange hold period which expires on December 7, 2017. The Loans have a term of one year before the Lenders can make demand for payment and carry an annual interest rate of 12%. The Loans are secured by a guarantee of the Company's subsidiary, which holds its Pastos Grandes Project, as well as by a general security interest in assets. The Company has no other material indebtedness other than trade payables incurred in the ordinary course of its business. The Company sought prior approval of the Loans and the issuance of the Shares from the Exchange prior to the advance of the Loan Funds to the Company by the Lenders.
The Loan Funds were used by the Company to forward the funds representing the Initial Payment to its Argentinean subsidiary.
This news release has been reviewed by Iain Scarr, AIPG CPG., Chief Operating Officer of the Company and a qualified person as that term is defined in National Instrument 43-101.
To find out more about Millennial Lithium Corp. please contact Investor Relations at (604) 662-8184 or email info@millenniallithium.com.
MILLENNIAL LITHIUM CORP.
“Farhad Abasov”
CEO, Director
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This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, currency risks including the exchange rate of USD$ for Cdn$, fluctuations in the market for lithium, changes in exploration costs and government royalties or taxes in Argentina and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.
