Southern Lithium Corp. (TSX-V:SNL) (FSE:SL5) (“Southern” or “the Company”) is anticipating the issuance of the drill permits shortly for its Cruz property. The design phase of the 2017 drilling program for its flagship Cruz Property (the “Property”), located in the Pocitos Salar Basin in Salta Province, Argentina has been completed. Two drill targets have been selected, and these targets were selected based on the results of the recently completed Transient Electromagnetic Survey (“TEM”) geophysical survey, previously announced February 21, 2017.
Phase one Drilling Program at Cruz property
The first phase of the program will consist of two HQ-diametre core holes at two separate locations to establish brine chemistry at discrete vertical intervals as well as other key geologic and hydrologic features. At each site, drilling will test the salar to a depth of at least 350 metres, providing valuable depth-specific lithological information, samples for brine analysis and permeability testing of individual brine aquifers.
The first hole will be drilled in the center of the deepest part of the southern half of the body of brine, between TEM ground stations 6 and 14.
The second hole will be drilled in the center of the deepest part of the northern half of the brine body, between TEM ground stations 7 and 8.
Southern has engaged Hidrotec S.R.L., a Salta-based drilling contractor with extensive experience in drilling and testing salar-hosted lithium brines in the region. Additionally, Southern has engaged Mike Rosko of Montgomery and Associates Inc., a US-based hydrogeological consulting firm to oversee the drilling program as the Company's qualified person, as defined by NI 43-101.
The exploration program will be managed by Iain Scarr, Millennial Lithium Corp., (TSX-V:ML) Chief Operating Officer, and a Qualified Person as defined by NI 43-101. Mr. Scarr is Certified Professional Geologist (CPG) with the American Institute of Professional Geologists.
The TEM results show a continuous north-south trending conductive unit over a distance of more than 6 kilometres. In comparison to other salar basins in the region, highly conductive readings generally indicate a high concentration of brine at only 30 metres below the surface, and is covered at surface by a layer of compact halite. Salar brines in the “Lithium Triangle” of Argentina, Bolivia and Chile typically contain high levels of lithium.
The geophysics report can be found on the Southern Lithium Corp.’s website: http://southernlithium.com/portfolio-items/cruz-property/
Southern Lithium’s President, Mr. Larry Segerstrom, stated, “It’s not often that you have such a clear target within such a favorable geologic setting. The geophysical results not only strongly suggest the presence of a large, shallow body of highly conductive brine, but also provide clear indications of where to drill. These previous TEM results, together with the Cruz Property’s proximity to other large lithium resources and the known geology of the area, make this an extremely promising opportunity.”
As previously announced on February 7, 2017, the Company announced a non-brokered private placement (the “Offering”) of 4,000,000 units (each “Unit”) at a purchase price of $0.25 per Unit, for gross proceeds of up to $1,000,000. Each Unit will consist of one (1) common share (“Common Share”) of the Company and one (1) non-transferable share purchase warrant (“Warrant”).
Subsequently, the Company announced on March 28, 2017, an increase in the private placement (the “Offering”) to 6,400,000 units (each “Unit”) at a purchase price of $0.25 per Unit, for gross proceeds of up to $1,600,000. Each Unit will consist of one (1) common share (“Common Share”) of the Company and one (1) non-transferable share purchase warrant (“Warrant”).
Each Warrant will entitle the holder to acquire one (1) Common Share at an exercise price of $0.35 for a period of 18 months from the closing date of the Private Placement. In the event that the Company’s common shares trade at a closing price greater than $0.50 per share for a period of 10 consecutive trading days at any time after the closing date, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date hereafter referred to as the (“Forced Conversion Feature”) on which such notice is given by the Company.
The Company may, in its sole discretion, pay a finder’s fee within TSX Venture Exchange policy guidelines in connection with the Private Placement. The Private Placement is subject to TSX Venture Exchange approval.