HIGHLIGHTS
- Total Area Expanded to 29,182 hectares, now “ district scale ”
- Initial Payment of USD$172,911 and 100,000 shares amongst five agreements
- Further payments contingent on drill results
- Drill Permitting Underway and Drill Tender Process Initiated
- 43-101 Report Filed on SEDAR
- Resumption of Trading on Tuesday, February 21, 2017
VANCOUVER, B.C., Feb. 21, 2017 (GLOBE NEWSWIRE) -- NRG Metals Inc. (“NRG” or the “Company”) (TSX-V:NGZ) (OTC Pink:GPOFF) (Frankfurt:OGPN). The Company is pleased to announce the expansion of the Carachi Pampa Lithium Project located in Catamarca Province, Argentina (the “Project”), to a total of 29,182 hectares, which now comprises most of the Carachi Pampa basin, and can now be classed as “district scale” sized project. All documentation has been accepted for filing by the TSX Venture Exchange (the “Exchange”), and the common shares of the Company will resume trading Tuesday, February 21, 2017.
The Project is now comprised of five contiguous claim groups. The Luz Maria Claim Group, which was the first acquisition signed by the Company, and resulted in a Fundamental Acquisition and trading halt as per Exchange policy, was re-negotiated on terms similar to the additional acquisitions. During the trading halt, Company management sought to consolidate the entire basin into one project area. Four other contiguous claim packages, the Beatriz, La Fortuna, Padre José María and Sofía claim groups were optioned.
Initial payments for the entire package collectively total USD$172,911 and 100,000 shares, with no further payments due until the completion of a drill program and receipt of results satisfactory to the Company. Upon the receipt of satisfactory results, the Company will make payments totaling USD$535,000, the issuance of an additional 100,000 shares and to enter into definitive agreements for the property package. Further payments to the owners will result in a total purchase price of USD$6,717,911 over a 54 month period (full details are available at the Company’s website, www.nrgmetalsinc.com). The Company will file the amended agreement for the Luz Maria Claim Group, and the additional projects, as an exempt transaction.
The Project is situated 40 kilometers south of the town of Antofagasta de la Sierra, Catamarca, at approximately 3,000 meters elevation. This region of Argentina is host to the Hombre Muerto Salar where FMC is producing approximately 20,000 tonnes of lithium carbonate equivalent per year and Galaxy Resources’ is developing the large Sal de Vida project (the Company cautions these deposits may not be indicative of mineralization at the Carachi Pampa Paleo Salar; further exploration is required). There is a provincial road within 10 kilometers of the Project area, and local support services are located nearby.
A National Instrument 43-101 Technical Report (the “Report”) entitled “Technical Report on the Carachi Pampa Lithium Project, Catamarca Province, Argentina”, completed by Rojas y Asociados Mining Consultants of Mendoza, Argentina, has been accepted by the Exchange and filed on SEDAR. The full Report is available at the Company’s website at www.nrgmetalsinc.com. Details of the Report include the results of a surface Vertical Electrical Survey (“VES”).
The VES geophysical survey was conducted by Conhidro S.R.L. (“Conhidro”) from Catamarca and Salta, Argentina. This method has been used extensively in Argentina to successfully delineate potential brine zones below surface. Based on the VES resistivity data, four separate zones or units with distinct resistivity characteristics were identified (Figure 1). The first three units are characterized by relatively high resistivity and are therefore not likely to contain brine. However, the fourth unit has extremely low resistivity, which is characteristic of brine zones.
The fourth zone, which is shown in pink in the figure referenced below, was the target of the investigation. It is a highly conductive zone with resistivity values that range from 0.1 to 1.4 ohm/m and is interpreted by Conhidro to represent a zone of saturated brines. The zone begins at a depth of 70 meters in the southwest portion of the claim group, and it dips to a depth of 300 meters to the north northeast part of the claim group. The zone is at least 150 meters thick, and it is open at depth and in all directions laterally.
An attachment accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/ef84cce6-6858-4cbc-9580-1a0090cf8861
The Report establishes the Project as a property of merit, and recommends an exploratory drill program. An environmental impact assessment has been completed and filed with the relevant governmental authorities to obtain a permit to drill the Project. Company management has initiated a bid process for the first phase of drilling on the Project. Proposals have been received and are under review. All environmental studies necessary to obtain drill permission have been completed and filed.
Dr. Arthur Darryl Drummond, P.Eng., who is a member of the Association of Professional Engineers of British Columbia (Lic. #5778), and a Qualified Person as defined in National Instrument 43-101 has prepared, and supervised the preparation of this press release and approves the technical and scientific disclosure of the press release.
Resumption of trading in the Company’s shares is expected to occur on Tuesday, February 21, 2017 at market open following the issuance of the Exchange bulletin.
On Behalf of the Board of Directors,
Adrian Hobkirk,
President, CEO and Director
T: 714.316.3272
E: ahobkirk@nrgmetalsinc.com
W: www.nrgmetalsinc.com
The TSX Venture Exchange has not reviewed the content of this news release and therefore does not accept responsibility or liability for the adequacy or accuracy of the contents of this news release.
This news release contains certain “forward- looking statements” within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward- looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward looking statements. The reader is cautioned not to place undue reliance on forward-looking statements. The transaction described in this news release is subject to a variety of conditions and risks which include but are not limited to: regulatory approval, shareholder approval, market conditions, legal due diligence for claim validity, financing, political risk, security risks at the property locations and other risks. As such, the reader is cautioned that there can be no guarantee that this transaction will complete as described in this news release. We seek safe harbor.