Mr. Steve Cochrane reports
LITHIUM CHILE SELLS NON-CORE CLAIMS AND ACQUIRES ADDITIONAL 12,100 HECTARES ON TWO CORE PROJECTS
Lithium Chile Inc. has acquired an additional 9,600 hectares on its Laguna Blanca project in Chile. The addition of the 39 claims increases the company's ownership to 14,800 hectares in the
Laguna Blanca basin. In addition, Lithium Chile acquired 2,500 hectares of new claims on the Salar de Aguas Caliente Norte. This is a new project for Lithium Chile and expands the company's portfolio of projects in Chile.
The company recently announced it entered into an arm's-length definitive option agreement dated March 30, 2022, with Monumental Minerals Corp., to earn up to 75 per cent of the original 5,200-hectare Laguna Blanca project, located 65 kilometres east of the town of San Pedro de Atacama, Chile (see news release dated March 31, 2022). It is Lithium Chile's intention to option the 39 additional claims to Monumental.
The Aguas Caliente project is located 70 kilometres southeast of San Pedro and covers the southeast flank of the salar basin adjacent to an active geothermal hot spring and the flank of the associated volcano. Prior government sampling of surface brines in the project area reportedly returned values of 270 to 380 milligrams per litre (mg/l) lithium (Li) and 1,260 to 1,770 mg/l potassium (K). Check sampling by Lithium Chile staff returned up to 369 mg/l Li and 2,700 mg/l K in brine and elevated values of cesium up to 126.5 g/t in sediment samples.
Both projects are located within the prolific lithium triangle, a zone within the central Andes high desert that includes Chile, Argentina and Bolivia. This zone is estimated to contain more than half of the world's lithium supply beneath the many salt flats, also known as salars, that are common to the region.
The company also announces it has signed a sale agreement with Wealth Minerals Ltd., to sell 1,600 hectares of a minority, non-core asset in the
basin. The transaction terms include a payment of two million shares of Wealth Minerals upon the completion of their due diligence. An additional payment of one million shares is payable by Wealth to the company within 12 months if Wealth establishes within the acquired licences either a resource with an average grade of 300 parts per million lithium content or a test well on the acquired licences that produces material that tests no less than 300 parts per million lithium content. If Wealth does not conduct work necessary to potentially determine a resource or does not have a test well to produce material for lithium testing within 12 months, then Wealth is obligated to pay 500,000 shares to Lithium Chile. If the work necessary to potentially determine a resource or run a test well is completed but a resource or test well does not produce an average grade higher than 300 parts per million lithium, then no further share payments are due by Wealth to the company.
Steve Cochrane, president and chief executive officer, comments:
"The addition of 12,400 hectares on two of our core properties puts the company in a meaningful position to optimize the potential of the Laguna Blanca project. Disposing of non-core assets while increasing those that we believe will bring our company and shareholders value is in line with our overall strategy to optimize the holdings and capacity of our company."
The transaction between Wealth and Lithium Chile is subject to TSX Venture Exchange approval.
About Lithium Chile
Lithium Chile is advancing a lithium property portfolio consisting of 80,938 hectares covering sections of 11 salars and two laguna complexes in Chile and 23,300 hectares in Argentina.
Lithium Chile also owns five properties, totalling 22,429 hectares, which are prospective for gold, silver and copper. Exploration efforts are continuing on Lithium Chile's Carmona gold/silver/copper property, which lies in the heart of the Chilean mega porphyry gold/silver/copper belt.
Lithium Chile's common shares are listed on the TSX Venture Exchange under the symbol LITH
and on the OTC-BB under the symbol LTMCF.
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