Vancouver, British Columbia--(Newsfile Corp. - December 21, 2017) - Millennial Lithium Corp. (TSXV: ML) (FSE: A3N2) (OTCQB: MLNLF) ("Millennial" or the "Company") is pleased to report that on December 21, 2017 it has entered into the final agreement (the "Final Agreement") with the Salta Provincial Energy and Mining Company ("REMSA") for the acquisition of 2,492 hectares of claims (the "REMSA Ground") strategically located in the Pastos Grandes Salar and contiguous with Millennial's current land holdings there. Completion of the acquisition will bring the Company's holdings at Pastos Grandes to a total of 8,664 hectares. The award of the REMSA Ground to the Company, and the terms of that award and acquisition, were disclosed in the Company's news release dated August 24, 2017. The process for entering into the Final Agreement was further detailed in the Company's news release dated September 1, 2017.
Farhad Abasov, President and CEO of Millennial, commented, "We are very pleased to have finalized the agreement with REMSA. Our previous drill campaign in the southern section of our existing Pastos Grandes ground adjacent to the northern section of the REMSA ground will guide our intensive exploration and development program to commence next year. We are excited about the potential of this new ground and look forward to launching our technical programs on this ground."
Amendments to the Cauchari East Option Agreement
The Company also wishes to announce that it has agreed to amend the terms of its agreement (the "Cauchari East Agreement") by which it can acquire a 100% interest in the Cauchari East Lithium Project. The Cauchari East Agreement was first announced on September 26, 2016 with additional disclosure in the Company's news release dated September 28, 2016.
Under the original terms of the Cauchari East Agreement, Millennial could acquire a 100% interest in the Project, royalty and easement free, in consideration of the following payments, share issuances and work commitments:
1. to earn a 50% interest in the Property:
a. pay to the Optionor $250,000 upon execution of this Agreement (paid);
b. issue to the Optionor $500,000 worth of Millennial common shares within ten (10) business days of the date of TSX Venture Exchange approval (the “Approval Date”) of this Agreement (completed);
c. pay to the Optionor an additional $750,000 on or before the first anniversary of the Approval Date;
d. issue to the Optionor an additional $1,000,000 worth of Millennial common shares on or before the first anniversary of the Approval Date; and
e. make $2,000,000 in Expenditures on or before the first anniversary of the Approval Date unless another date is agreed by the parties.
2. to earn the remaining 50% interest in the Property, make the following additional payments, share issuances and Expenditures: (i) pay to the Optionor $1,000,000 on or before the third anniversary date of the Approval Date; (ii) issue to the Optionor $1,000,000 worth of Millennial common shares on or before the third anniversary date of the Approval Date; and
(iii) make an additional $2,000,000 in Expenditures on or before the third anniversary of the Approval Date.
Upon acquisition of a 100% interest, the vendor was to retain a 3.5% GOR which could be reduced to 1.5% with payment of USD$2,000,000.
The amended terms of the Cauchari East Agreement are as follows:
- The 3.5% GOR is now a 3.5% NSR with the reduction to 1.5% upon payment of USD$2,000,000 to the vendor being unchanged;
- Option to pay the US$1,750,000 total in (a)(iii) and (iv) in cash rather than cash and shares;
- Option to pay the US$2,000,000 in (b)(i) and (ii) in cash rather than cash and shares; and
- There are no longer any minimum expenditures requirements (the expenditure requirements in (a)(v) and (b)(iii) have been eliminated).
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"
President and CEO, Director
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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. Forward-looking statements contained in this news release include statements regarding the closing of the Offering, the timing of the closing of the Offering, the use of proceeds from the Offering, the receipt of requisite regulatory approvals and the exercise of the Over-Allotment Option. These forward-looking statements are based on reasonable assumptions and estimates of management of the Company, at the time they were made, involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and factors include, among others, volatility in the trading price of the Company's common shares, risks relating to the ability of the Company to obtain the requisite regulatory approvals relating to the Offering, volatility of future commodity prices, accuracy of mineral or resource estimates, results of exploration activities, 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 and changes in exploration costs and government royalties or taxes in Argentina. 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.
