Advantage to sell non-core asset as it preps for exploration and development at Cauchari
VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 31, 2017) - Advantage Lithium Corp. (the "Company" or "Advantage Lithium") (TSX VENTURE:AAL)(OTCQX:AVLIF) is pleased to announce that it has agreed to assign its option over the 1,471 hectare Stella Marys Project, located in the Salinas Grandes Salar in Salta province, Argentina (the "MSR Option"), to LSC Lithium Corporation ("LSC") (TSX VENTURE:LSC). Advantage currently holds the MSR Option pursuant to an agreement with Minera Santa Rita SRL ("MSR") dated October 27, 2016 (the "MSR Option Agreement").
David Sidoo, President and CEO of Advantage Lithium, commented, "Stella Marys is a prospective project in a strategic location. This transaction allows us to monetize this asset, including a 0.5% royalty across the entire play pf 79,031 hectares, as LSC develops this considerable land package. The timing of the transaction is particularly beneficial as we prepare, with our partner, Orocobre, for an aggressive drill program at our advanced Cauchari project."
TERMS OF THE SALE OF STELLA MARYS PROJECT
LSC will acquire the MSR Option by:
a) making aggregate cash payments of approximately $740,000 to Advantage in reimbursement of option payments and related expenses previously paid by Advantage pursuant to the MSR Option Agreement;
b) issuing 128,260 LSC common shares to Advantage as reimbursement for the 300,000 Advantage shares issued by Advantage to MSR.
LSC will thereafter have the right to acquire the Stella Marys Project pursuant to the exercise of the MSR Option prior to September 21, 2017 by:
a) making a cash payment of $650,000 to MSR;
b) issuing to Advantage a number of LSC common shares (calculated on the basis of the proportionate closing prices of the LSC common shares and Advantage common shares on the trading day preceding the date of closing of the MSR Option exercise), as reimbursement for the issuance by Advantage of the 900,000 Advantage common shares to MSR in connection with the exercise of the MSR Option; and
c) entering into a royalty agreement with Advantage with respect to a 2% royalty on the brine concentrate produced from the Stella Marys Project that will be granted by LSC to Advantage, calculated using the same methodology as used for the Salinas Grandes Royalty.
Advantage will receive a 0.5% royalty on the brine concentrate produced from Salinas Grandes Tenements, calculated using the same methodology applied by Orocobre and its affiliates for the calculation of the royalties paid by Orocobre or its affiliates to the provincial government of Jujuy for Orocobre's last two fiscal years (the "Salinas Grandes Royalty") regardless of any retroactive or future changes to such methodology made after December 31, 2016.
In the event the Company issues further shares then LSC will issue to AAL an equivalent number of LSC shares.
In addition, Advantage has agreed to: (a) a 10 year exclusion area covering the 10 km area from the external perimeter of any of the Salinas Grandes Tenements, and (b) a 10 year non-interference zone respecting all properties held by LSC located south of Rio Las Barros.
Closing of Transaction
The closings of the transactions with Orocobre and LSC Lithium Corporation are subject to satisfaction of various conditions precedent, which are typical of transactions of this nature, as well as the simultaneous closing of each transaction. These closings are scheduled for completion on or about April 30, 2017.
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. The common shares of the company are listed on the TSX Venture Exchange (TSX VENTURE:AAL), and the company is also traded on the OTCQX Best Market in the U.S. (OTCQX:AVLIF). The company has acquired a 100% interest in five projects in Argentina and up to a 75% interest in a sixth, called Cauchari. Cauchari is host to a near-surface estimated inferred resource of 230 million cubic metres of brine at 380 mg/l Lithium that equates to 470,000 tonnes of lithium carbonate (LCE), and a large exploration target of 5.6mt to 0.25mt of LCE and 19mt to 0.9 of KCL. Cauchari is located just 20 km south Orocobre's flagship Olaroz Lithium Facility. The Company is also 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, including 70% in Clayton NE. In addition, the Company's Stella Marys transaction with LSC Lithium Corporation (LSC) allows the Company to monetize this asset including a 0.5% royalty across the entire play of the 79,031 hectare LSC land package located in the Salinas Grandes Salar, in Salta province, Argentina.
ADVANTAGE LITHIUM CORP.
David Sidoo, CEO, President, Director
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 outcome of the Closing, and 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.
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