Millennial Lithium Corp. (TSX VENTURE:ML), ("Millennial" or the "Company") is pleased to announce the engagement of Montgomery and Associates Inc., a United States-based hydrogeological consultancy to provide drill program and pumping test guidance and complete a NI 43-101 compliant resource estimate at the Pastos Grandes Project. The Pastos Grandes Project covering over 6000 hectares of the Pastos Grandes Salar in Salta, Argentina has been the subject of several recent exploration drill holes, all of which indicate significant lithium brine from surface to depths exceeding 400 metres.
Following completion of the phase I program, Millennial and its consultants have determined that a compliant lithium resource can be estimated with a budget that is significantly less than previously envisioned. This net savings is primarily due to drilling cost reductions and reduced drilling frequency as calculated by our consultants. As a result, the Company will be amending the financing previously announced on February 22, 2017.
The new terms of the financing will be 4.5 million units at a price of $1.25 for gross proceeds of $5,650,000. Each unit will consist of one common share and one half share purchase warrant, each whole share purchase warrant being exercisable into a common share for $1.50. The Company will not be accepting any further subscription agreements and is aiming to close by March 24, 2017. Current working capital of Millennial prior to any of this financing is $2.5 million.
In addition to overseeing ongoing operations in Argentina, management has recently completed a tour through Japan, Hong Kong, China and Thailand where they were introduced to a number of strategic partners and/or end users. Although these relationships are at a very early stage, NDA's have been executed with several parties.
"While there is no certainty that any definitive agreements will arise from the 5 NDA's signed to date it is encouraging to see the level of interest from potential strategic partners and end users at this early stage of our development. Millennial looks forward to completing an NI 43-101 resource estimate and further its talks with these groups. We appreciate the significant cost savings that Montgomery & Associates has identified," reports Graham Harris.
Millennial also reports it has initiated a ground geophysics program at its Cauchari East Project in Jujuy province, Argentina. 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 Cauchari-Olaroz Project.
The geophysics program consists of a Vertical Electrical Soundings (VES) survey comprising seven profiles, four on the northern block and three on the southern unit. The method is suitable for detecting layering in soils, top of bedrock, groundwater table and salt water intrusions. The latter two applications in particular are of particular use for identifying subsurface brine and the interface with near-surface fresh water at Cauchari East.
Historic 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.
This news release has been reviewed by Iain Scarr, AIPG CPG., COO of the Company and a Qualified Person as that term is defined in National Instrument 43-101.