VANCOUVER, British Columbia, Aug. 24, 2017 (GLOBE NEWSWIRE) -- Millennial Lithium Corp. (TSX.V:ML) (Frankfurt:A3N2:GR) (OTCQB:MLNLF) (“Millennial” or the “Company”) is pleased to report that the Company has been awarded 2,492 hectares of claims (the “Properties”) from The Salta Provincial Energy and Mining Company (“REMSA”). Following consideration of challenges to their technical Committee’s recommendation, a final decision was published by REMSA on Aug. 22, 2017 whereby REMSA ratified the recommendation that the Properties, or minerals investigation area, be awarded to Millennial.
The Properties are strategically located in the Pastos Grandes Salar, Salta Argentina and are contiguous to Millennial’s current claims. The addition of the tender area brings the Company’s holdings at Pastos Grandes to 8,664 hectares. The Properties are strategically important to Millennial in light of Millennial’s recent nearby discovery holes. The Company currently has four drill rigs operating at Pastos Grandes as well as on-site evaporation testwork on brine from pumping well PGPW16-01.
Exploration activities on the REMSA Properties will be expedited and will include surface geophysical surveys (seismic, CSAMT) and diamond drilling upon the granting of permits and the acceptance of the Environmental Impact Report (EIR). The Company's current exploration program remains on schedule to deliver a resource estimate early in Q4 2017.
Millennial CEO, Farhad Abasov, commented: "We are very pleased to have received the final award of the REMSA claims at Pastos Grandes. These Properties are contiguous with our holdings at Pastos Grandes and greatly expand the volume of brine aquifer being considered for our ongoing resource estimation. The Company will initiate exploration activities on acceptance of the Environmental Impact Report, and dedicate significant resources to the project. The consolidation of the Pastos Grandes Salar is an integral piece of our strategy moving forward.”
Millennial’s offer for the REMSA Properties comprised the following:
- Millennial’s extensive background, experienced team and record of success in lithium, development in general and at Pastos Grandes in particular
- A stage 1 evaluation spending (investment) commitment of US$15.54 million to maintain the Company’s interest in the REMSA properties.
- US$3000 per hectare option exercise. Total US $7,476,150
- Initial Payment of 25% of the total US $1,869,037.50 (paid)
The awarding of the Properties by REMSA starts the process whereby the Company will enter into a definitive agreement with REMSA over the available area comprised in the tender file Nº 22.765. Upon signing the agreement, the Company has the option to apply for the transfer of the individual properties within the Properties, and will concurrently submit an Environmental Impact Report (EIR) for the planned exploration and development program.
Within approximately 15 business days after the final award is issued, Millennial will sign the final agreement which will trigger the Initial Payment to REMSA. The initial payment has been transferred into the local account for Millennial’s subsidiary, Proyecto Pastos Grandes S.A.
Within 15 days after the signing of the agreement Millennial should submit the EIR for the Stage I evaluation work program.
Within 30 days after the signing of the agreement Millennial should secure environmental insurance.
Once the EIR is approved a one (1) year deadline is triggered for the investment of the US$15.54M Stage I program.
The investment plan for the REMSA tender area includes but is not limited to initial geophysics, expansion of the infill drilling program and potential for resource expansion, pilot evaporation and process testing to include a production scale evaporation pond, environmental baseline studies, an enlarged camp and a serious commitment to the Company's CSR program in the region. This consolidation is a key part of our plan to position Millennial Lithium as a new lithium producer coming on line in the next few years.
The Company has filed a technical report on the Pastos Grandes Project which updates the technical report filed on SEDAR on June 26, 2017 to include disclosure regarding the additional REMSA Properties.
In addition, the Company wishes to announce that its private placement closed on March 27, 2017 has been reduced, with the return to treasury of 200,000 units. from 4,750,000 units to 4,550,000 units and from proceeds of $5,937,500 to proceeds of $5,687,500. Each unit was comprised of one common share and one-half share purchase warrant. The reduction in the size of the private placement was due to one placee not forwarding subscriptions receivable of $250,000. The subscriptions receivable were disclosed in the Company's last quarterly financial statements and subsequent financial statements will reconcile the resulting change in the Company's share capital.
This news release has been reviewed by Iain Scarr, AIPG CPG., Chief Operating Officer of the Company and a qualified person as that term is defined in National Instrument 43-101.
To find out more about Millennial Lithium Corp. please contact Investor Relations at (604) 662-8184 or email info@millenniallithium.com.
MILLENNIAL LITHIUM CORP.
“Farhad Abasov”
CEO, Director
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, currency risks including the exchange rate of USD$ for Cdn$, fluctuations in the market for lithium, changes in exploration costs and government royalties or taxes in Argentina and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.