Wealth Minerals announces that it has executed a Letter of Intent (the "LOI") to acquire an option agreement giving it the right to acquire a 100% royalty-free interest in the Puritama 1 to 8 exploration concessions located in the Salar de Aguas Calientes (the "Property"), located in Region II, northern Chile .
"This acquisition is one of several potential acquisitions that Wealth management has been negotiating in the past weeks. The acquisition of this interest in the Salar de Aguas Calientes gives Wealth a real foothold in Chile , outside of the recently announced proposed transaction with Li3 in the Salar de Maricunga." stated Henk van Alphen , Wealth’s President & CEO.
The Salar de Atacama is currently the only salar in Chile which produces lithium. Chile’s Sernageomin (Servicio Nacional de Geologia y Mineria) has published a list of 15 other high-potential Chilean Salars, and the Aguas Calientes Norte Salar is included in this list.
Exploration concessions at the Salar de Aguas Calientes cover an area of approximately 25km2 (Figure 1) with 20km2 subject to the option agreement to be acquired by Wealth and the remaining 4km2 held by Sociedad Química y Minera de Chile ("SQM"), which is the largest lithium producer in Chile.
The exploration concessions are in the process of being constituted and have preferential rights over the area that they cover. Once constituted, they will be valid for 2 years, and may be extended for an additional two years upon relinquishment of 50% of the area. Wealth anticipates that the concessions will be finally issued within the next 60 – 75 days.
Historical surface sampling of brines and springs on the Property was completed in 1993 and results are outlined fully in the table 1 below. Results in 1993 suggested a lithium concentration ranging up to 169 mg/l.
This initial sampling is broadly in line with independent analysis published by signum BOX ( June 2015 ), which suggests an expected lithium concentration of 205 mg/l to 290 mg/l. The exploration concessions are located 320km from the port of Antofagasta. Access to the Property is via Route 27, a highway located at the western edge of the claim block.
The Company is treating the Property as a greenfields exploration project. Although the limited earlier work noted here suggests that the Property has potential to host a lithium deposit, the Property has not, to the knowledge of the Company, yet been explored with modern lithium brine exploration methods and there has been insufficient exploration to define a lithium deposit and it is therefore uncertain if further exploration will result in a lithium deposit being delineated on the Property.
Accordingly, the initial program to be carried out by the Company will consist of a program of prospecting and sampling to determine the existence, nature, extent and distribution of lithium at the Property.
Under the LOI, Wealth has the right to acquire all of the right, title and interest of Minera MyMinerals Limitada, a private Chilean company ("MYM") in and to an option agreement dated April 18, 2016 ("Option Agreement") between MYM and Virtud Minerals SpA, a private Chilean company, ("VMS"). Under the Option Agreement, MYM can acquire a 100% royalty-free interest in the Project by making the following payments to VMS:
Subject to satisfactory due diligence by Wealth, which will be completed within 60 days, Wealth and MYM will execute an assignment agreement whereby MYM will assign all of its rights under the Option Agreement in consideration of reimbursement of the USD 150,000 initial payment and issuance to MYM of 100,000 Wealth Shares.
There are no work commitments under the Option Agreement. VMS has agreed to provide ongoing mining property consultancy services, in order to secure the completion of the constitution process of the concessions comprised in the Property and keep them valid and in good standing throughout the option period, for a monthly fee of USD 2,000 .
The completion of the acquisition of an interest in the Option Agreement by Wealth is subject to the acceptance for filing thereof by the TSX Venture Exchange.
Wealth is a mineral resource company with interests in Canada , Mexico , Peru and Chile. The Company’s main focus is the acquisition of Lithium projects in South America , including interests in the Maricunga Salar in Chile .
The Company also maintains a portfolio of precious and base metal exploration-stage projects, including Yanamina ( Peru ) and Valsequillo ( Mexico ).