Millennial Lithium Corp., is pleased to report it has entered into an option agreement (the "Agreement") to acquire 100% of the Cauchari East Lithium Project (the "Project") in Jujuy Province, Argentina from Fernando Erik Villarroel Alcocer (the "Vendor"), subject to the approval of the TSX Venture Exchange. The Project is strategically located within the "Lithium Triangle," which is host to some of the world's largest lithium resources.
Cauchari East covers an area of 2,990 hectares on the eastern side of the Cauchari-Olaroz Salar, adjacent to Orocobre's producing Salar de Olaroz and Lithium Americas Corp.'s advanced stage Cauchari-Olaroz. The property displays geological characteristics common with the deeper, buried salar-type mineralization that has been proven for both of those projects. Gravity and magneto-telluric (MT) survey profiles to the south of the property reported in the Orocobre Technical Report, and VES survey results to the north of the property as reported by Lithium Americas both indicate that the brine-hosting aquifers extend beneath the Cauchari East Project.
Since 2009, considerable work has been completed in the Cauchari Salar by Orocobre and Lithium Americas, much of which is detailed in environmental reports and NI43-101 technical reports on the salar. In additional to the geophysics surveys, the reports disclose significant geochemical data confirming that brine resources with high lithium concentrations extend to the eastern boundaries of the basin, in the direction of the Cauchari East Project. Lithium enrichment in this area of the Cauchari basin appears to be related to the deep structure that hosts the Cerro Negro volcano and which bounds the Cauchari East property along its western limit.
Millennial plans to apply its rapid development strategy to the Cauchari East property. Pending government and communities approvals, the Company will rapidly advance through geophysics to drilling in order to make a quick assessment of resources, and as warranted add Cauchari East as another production unit to the "pipeline" of their lithium production assets.
Under the terms of the Agreement, Millennial can acquire a 100% interest in the Project, royalty and easement free, in consideration of the following payments, share issuances and work commitments:
(a) to earn a 50% interest in the Property:
(i) pay to the Optionor $250,000 upon execution of this Agreement;
(ii) 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;
(iii) pay to the Optionor an additional $750,000 on or before the first anniversary of the Approval Date;
(iv) 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
(v) make $2,000,000 in Expenditures on or before the first anniversary of the Approval Date unless another date is agreed by the parties.
(b) 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.
Graham Harris, Chairman of Millennial, states "Adding Cauchari East compliments our strategy to acquire and advance multiple properties in the Lithium Triangle . Cauchari East, gives us another project that is drill ready and based on the work of Orocobre and others, provides us an excellent opportunity for early success".
This news release has been reviewed by Brent Butler, director, qualified person as that term is defined in National Instrument 43-101.
Millennial Lithium Corp. is an exploration and development company with lithium assets in North and South America.