Monumental Minerals Corp. is a mineral exploration company focused on the acquisition, exploration, and development of mineral resource properties in the critical and electric metals sector
MONUMENTAL MINERALS TO ACQUIRE SALAR DE TURI PROJECT. (Credit: Rolf Dobberstein from Pixabay)
Vancouver, British Columbia – August 23, 2022: Monumental Minerals Corp. (“Monumental” or the “Company”) (TSX-V: MNRL; FSE: BE5; OTCQB: MNMRF) is pleased to announce that it has signed a letter of intent (“LOI”) to acquire a 50.01% interest in the Salar de Turi Project (the “Project”) from Lithium Chile Inc. (“Lithium Chile”) located within the Lithium Triangle about 120 km northwest from the Salar de Laguna Blanca and 60 km northeast from the City of Calama, Chile.
The Salar de Turi Project is located within the prolific Lithium Triangle (“LT”), a zone within the central Andes high desert that includes Chile, Argentina, and Bolivia (Figure 1). The LT 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 Project comprises 31 exploration concessions totalling 8,500 hectares, 100% owned by Lithium Chile through its wholly owned Chilean subsidiary Minera Kairos Chile Limitada (“Minera Kairos”). The Project is accessible from the City of Calama (60 km to the southwest) via the paved roads 21CH, and B-165 and is close to infrastructure. Travel time from Calama to the Project is approximately 1 hour.
Jamil Sader, CEO and Director of Monumental Minerals comments, “The relationship we have built with Lithium Chile continues to develop into a growing joint effort to advance high-value salars towards lithium brine resources. The Salar de Turi Project represents a great opportunity, with highly compelling geophysics and geochemistry, excellent infrastructure, and year-round access. Monumental plans to move forward with exploration activities with the same vigour as with our other two critical metals projects, Laguna Blanca lithium brine, and Jemi heavy rare earth elements.”
Steve Cochrane, CEO and Director of Lithium Chile comments, “During a recent trip to Chile, I met with Monumental Minerals technical and social governance team, and I feel that they have the capability as demonstrated with Laguna Blanca, to advance the Salar de Turi Project. This joint venture will benefit both parties substantially with Lithium Chile being the largest shareholder of Monumental Minerals. The Joint venture is consistent with our desire to maximize the return on our Chilean assets while our focus is on our Arizaro Argentinian development program.”
Subject to the execution of a definitive agreement (“Definitive Agreement”), Monumental will have the option to earn-in up to a 50.01% interest in the Salar de Turi Project by making certain staged cash payments and issuing common shares to Lithium Chile and incurring exploration expenditures on the Salar de Turi Project as follows:
Make cash payments of an aggregate of C$700,000 according to the following schedule:$200,000 upon final TSX Venture Exchange approval of this proposed transaction (the “Acceptance Date”);
$250,000 on or before the fourteenth (14) month anniversary of the Acceptance Date; and
$250,000 on or before the second anniversary of the Acceptance Date.
Incur minimum expenditures on the Salar de Turi Project of not less than an aggregate of C$1,400,000 according to the following schedule:$700,000 on or before the first anniversary of the Acceptance Date; and
$700,000 on or before the second anniversary of the Acceptance Date.
Issue and deliver to Lithium Chile, that number of common shares of Monumental that would result in Lithium Chile holding, on a non-diluted basis, 9.9% of the issued and outstanding common shares of Monumental (the “Payment Shares”), within ten (10) days of the closing of Monumental’s next completed financing (if any occurs) following the Acceptance Date, but no later than the twelve (12) month anniversary of the Acceptance Date, unless otherwise mutually agreed to by both parties.
In addition to the statutory hold period of four months and a day from the date of issuance, the Payment Shares will be subject to a 12-month voluntary hold period from the date of issuance. Upon Monumental earning a 50.01% interest in the Salar de Turi Project, Monumental and Lithium Chile will use commercially reasonable efforts to negotiate and execute a joint venture agreement for the purpose of jointly carrying out exploration, evaluation and development of the Salar de Turi Project.
Further details regarding the proposed transaction with Lithium Chile will be provided in a comprehensive news release if, and when, the parties enter into the Definitive Agreement. The proposed transaction between Monumental and Lithium Chile is subject to, among other things, the execution of the Definitive Agreement and TSX Venture Exchange approval.
Source: Company Press Release