LAS VEGAS, Oct. 26, 2018 (GLOBE NEWSWIRE) -- Barrel Energy Inc. (OTC: BRLL) (the “Company” or “Barrel”) is pleased to announce the Company on October 11th, 2018 entered into an earn-in option agreement (the ‘Agreement’) on a high quality Lithium project with True Grit Resources (‘TGR’).
Barrel has recently adapted to market and policy trends shaping the future of energy is seeking a portfolio of high quality projects for Electric Vehicles and mobile devices. In our first move towards that goal Barrel has entered into an agreement with TGR. Under the terms of the Agreement Barrel has the option to acquire, in tranches, up to a 100% participation in the leases composing True Grit's L.G. Lithium in-Brine Project in Arizona.
TGR have recently completed promising Mobile Metal Ion (MMI) sampling of the project and have produced a 43-101 report on the L.G. Project. Drill ready targets have been generated by TGR's geologists that focus on the core area of a structural corridor know to host abundant brine-water that have consistently yielded anomalous Lithium values. Reinterpretation of a regional geophysical survey has provided further evidence that the area contains a significant area of very low resistivity that have been interpreted to represent the brine saturated sediments.
The option is exercisable in tranches upon meeting certain exploration project related expenditure thresholds as follows: (i) Barrel is to contribute US$400,000 to earn in an initial 49%; (ii) A 70% interest will be earned by Barrel upon further US $1,000,000 project related expenses; and (iii) Barrel is to receive a 100% interest in the project by completing a cumulative sum of US$2,400,000 work expenditures.
The first payment of $400,000 is due within 30 days of signing the agreement. TGR will be the operator of the exploration program and will hold a 5% Royalty on any production from the Project. Barrel has retained the right of first refusal on the Royalty.
Mr. Sangha states, “We are delighted to be working with True Grit at this exciting and very promising Lithium-in-brine project. Barrel is in the process of identifying a number of highly prospective Energy opportunities for the company and is very pleased to be moving forward quickly with a drill ready Lithium project.”
About Barrel: Barrel Energy Inc. is focused on becoming a leader in the energy sector by focusing on the rapid development of valuable production opportunities throughout North America.
Information of a technical and scientific nature that forms the basis of the disclosure in the press release has been approved by Craig Alford, MSc., P.Geo and President for Barrel Energy Inc., and a “qualified person” as defined by National Instrument 43-101.
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Forward-Looking Statements
This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this press release include but are not limited to the exploration earn-in agreement and any reference to work commitments. These are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include changing costs for mining and processing; increased capital costs; the timing and content of upcoming work programs; geological interpretations based on drilling that may change with more detailed information; potential process methods and mineral recoveries assumption based on limited test work and by comparison to what are considered analogous deposits that with further test work may not be comparable; the availability of labor, equipment and markets for the products produced; and despite the current expected viability of the project, conditions changing such that the minerals on our property cannot be economically mined, or that the required permits to build and operate the envisaged mine can be obtained. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
Contact Info for Barrel Energy:
Harp Sangha
1-702-595-2247