VANCOUVER, BRITISH COLUMBIA–(Marketwired – Sept. 12, 2016) – Advantage Lithium Corp. (the “Company” or “Advantage Lithium“) (TSX VENTURE:AAL) has entered into letter of intent (the “LOI”) with Radius Gold Inc. (“Radius”) pursuant to which the Company has acquired an option to earn up to a 70% interest in three lithium brine exploration projects (the “Projects”) located in Chihuahua, Northwest Mexico from Radius Gold Inc.
Key geographical highlights similar to Clayton Valley and/or associated with brine deposits
David Sidoo, President and Director, of Advantage Lithium, commented: “We are extremely pleased with these lithium brine projects. They are in a closed basin with salar targets and surface-level lithium – directly analogous to Clayton Valley. The region has seen little prior exploration and is an ideal setting for our technical team, which includes the award-winning geologist, Ross McElroy, who has a track record of making major discoveries in underexplored areas. We are looking forward to working with Radius to close the agreement and begin active exploration.”
|State||Project||Approx Property Size (ha)|
|La Union 2||7,000|
Upon closing of the agreement, Simon Ridgway will be appointed to the Advisory Board. Mr. Ridgway is a prospector, a mining financier and a Casey Research Explorer’s League inductee. Grass roots exploration has provided him with a successful career as a prospector since starting out in the Yukon Territory in the late 70s. Simon and the exploration teams under his guidance have discovered gold deposits in Honduras, Guatemala, Nicaragua and continue that success globally. Companies operating under the Gold Group banner have raised over $400 million for exploration and development projects since 2003. Simon is a founder and Chairman of Fortuna Silver Mines, and founder and CEO of Radius Gold, Medgold Resources and Focus Ventures.
Details of the LOI
In order to acquire the option, the Company will pay $25,000 and must pay an additional $50,000 and issue 250,000 shares within two business days of TSXV acceptance.
Under the terms of the LOI, the Company has an option (the “First Option”) to earn a 55% interest in the Projects by issuing 750,000 shares and spending $1,500,000 in exploration expenditures over a three-year period.
Upon exercise of the First Option to earn a 55% interest, the Company may elect to either: (a) form a 55:45 joint venture on industry standard terms, with Radius for further exploration and development of the Projects; or (b) receive an option (the “Second Option”) to acquire a further 15% interest in one or more of the Projects. In order to exercise the Second Option and increase its interest to 70%, the Company must complete a NI 43-101 compliant preliminary feasibility study within 24 months of the election date. Upon exercise of the Second Option, the Company and Radius will form a 70:30, industry standard joint venture.
The Company has the right for a period of 60 days after the exercise of the Second Option on any Project, to purchase Radius’ 30% interest in the Project at a price based on an independent valuation.
The Company will be the operator of the Projects during the option periods.
The parties intend to negotiate a definitive agreement to reflect the terms of the LOI together with customary terms.
Upon formation of a joint venture, neither party may transfer its interest in the joint venture without first offering it to the other party.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Ross McElroy, P.Geol., Technical Advisor to Advantage Lithium Corp., and the Designated Qualified person for the company.
Further information about the company can be found at www.advantagelithium.com.
About Advantage Lithium Corp.
Advantage Lithium Corp. is a resource company specializing in the strategic acquisition, exploration and development of lithium properties and is headquartered in Vancouver, British Columbia. Common Shares are listed on the TSX Venture Exchange under the symbol “AAL”. The company is earning an interest from Nevada Sunrise Gold Corp., in a portfolio of five lithium brine projects in the Clayton and Lida Valley regions of Nevada, USA, together with certificated water rights in the Clayton Valley.
ADVANTAGE LITHIUM CORP.
David Sidoo, President
Certain information contained in this press release constitutes “forward-looking information”, within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”, “be achieved” or “has the potential to”. Forward-looking statements contained in this press release may include statements regarding the future operating or financial performance of Advantage Lithium which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release and the Company and Advantage Lithium disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
Neither 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.