All dollar amounts are in U.S. dollars unless otherwise indicated.
TORONTO, Sept. 22, 2017 /CNW/ - LSC Lithium Corporation ("LSC" or together with its subsidiaries, the "Company") (TSXV:LSC) is pleased to announce that, further to its news release dated June 5, 2017, the Company has exercised its option (the "Option") to acquire the Stella Marys Project located in the Salar de Salinas Grandes, in Salta province, Argentina. Closing of the acquisition is expected to take place on or about November 2, 2017.
STELLA MARYS HIGHLIGHTS
EXLORATION UPDATE HIGHLIGHTS
Ian Stalker, President and CEO of LSC, commented: "The acquisition of the Stella Marys Project will further consolidate and expand LSC's land position in Salinas Grandes and we are positioned to be the sole operator in the Salar. I believe Salinas Grandes holds significant development potential and we are actively working with the local communities and provincial governments on both the Salta and Jujuy sides of the salar to secure support for our activities and realize the full potential of Salinas Grandes."
The Stella Marys Property is strategically located immediately adjacent to tenements previously owned by Orocobre and acquired by LSC (see LSC Press Release dated March 29, 2017 for details) and immediately south and east of LSC's tenements Sofia III, Cangrejillos and Cangrejillos I. LSC understands that a previous operator completed a comprehensive exploration program of mapping, sampling, geochemistry, drilling and pump tests and preliminary engineering on the property. The Company anticipates confirming this work and other technical reports as part of its planned exploration program for all of its Salar de Salinas Grandes tenements, with the objective to confirm the historical data developed by ADY Argentina, Orocobre and others, and complete an initial NI 43-101 report on LSC's Salar de Salinas Grandes tenements in Salta Province by the end of 2017.
With the closing of the acquisition of Stella Marys, LSC will become the single largest tenement holder in the Salar de Salinas Grandes basin, both in Salta and Jujuy Provinces, with over 86,000 ha under control, either directly or in joint-venture with Dajin Resources, as illustrated in Figure 1 below.
Terms of the Acquisition
LSC acquired the Option from Advantage Lithium Corp. ("Advantage") pursuant to an agreement dated March 28, 2017 (the "LSC-Advantage Agreement"). The Option is governed by an agreement with Minera Santa Rita SRL ("MSR") dated October 27, 2016 (The "MSR Option Agreement") and the LSC-Advantage Agreement. The consideration payable by LSC at closing will be satisfied by:
| (a) |
making a cash payment of $650,000 to the owner of Stella Marys, MSR; |
| (b) |
issuing to Advantage a number of LSC common shares (calculated on the basis of the proportionate closing prices of the LSC common shares and Advantage common shares on the trading day preceding the date of closing), as reimbursement for the issuance by Advantage of 900,000 Advantage common shares to MSR at closing in accordance with the MSR Option Agreement and paying up to $48,000 in finder's fees payable by Advantage; and |
| (c) |
entering into a royalty agreement with Advantage with respect to a 2% royalty on the brine concentrate produced from the Stella Marys Project. |
The LSC common shares to be issued to Advantage will be subject to a 4-month hold period.
Update on Exploration Program & Exploration Team
LSC is pleased to announce that, further to its news release dated September 6, 2017, it is rapidly progressing its exploration program with a strong focus on developing NI 43-101 reports on its Salar de Pozuelos, Salar de Rio Grande and Salar de Salinas Grandes tenements in the Salta Province by the end of 2017, subject to receipt of permits for work on Salar de Salinas Grandes.
LSC is committed to accelerating its exploration program and is expanding its exploration team on the ground in Argentina. Several senior geologists and hydrogeologists have joined the LSC team in Argentina and are being supported by an expanded team of junior geologists and technicians. LSC has also secured office and storage facilities in San Antonio de los Cobres, Salta to support its exploration programs.
Exploration highlights include:
Salar de Pozuelos - Drilling is anticipated to be completed by the end of September, with final brine assay and the relative Brine Release Capacity (RBRC) sample results expected by mid-October. An initial NI 43-101 resource estimate is expected by the end of 2017.
Salar de Pastos Grandes - Hole PG-03 has now passed 200 m. Two additional holes are scheduled for completion by the end of November 2017. Results from brine packer tests and RBRC tests will be released as they become available.
Salar de Rio Grande - Geophysical exploration and twin hole drill programs are scheduled to start at the end of September, with an initial NI 43-101 resource estimate expected by the end of 2017.
Salar de Jama – As noted in the LSC press release of September 6, 2017, LSC is highly encouraged by the results of the initial geophysical work with respect to basin depth and potential for highly conductive brine horizons. Additional geophysical work involving 3D seismic and CS-AMT/TEM studies is scheduled to commence mid-October, followed by a program of shallow drilling in December 2017.
Qualified Person/Data Verification
The scientific and technical information included in this press release is based upon information prepared and approved by Donald H. Hains, P.Geo. Mr. Hains is a qualified person, as defined in NI 43-101 and is independent of LSC and Advantage.
ABOUT LSC LITHIUM CORPORATION:
LSC Lithium has amassed a large portfolio of prospective lithium rich salars and is focused on developing its tenements located in five salars: Pozuelos, Pastos Grandes, Rio Grande, Salinas Grandes, and Jama. All LSC tenements are located in the "Lithium Triangle," an area at the intersection of Argentina, Bolivia, and Chile where the world's most abundant lithium brine deposits are found. LSC Lithium has a land package portfolio totaling approximately 300,000 hectares, which represents extensive lithium prospective salar holdings in Argentina.
Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or future performance, including statements as to the completion of the acquisition of the Stella Marys Project and the timing thereof, the Company's expectations regarding the extent of its aggregate land position in Salinas Grandes and its development potential, ability of LSC to confirm prior historical exploration work conducted on Salinas Grandes, ability and anticipated timing to complete a NI 43-101 report on the Salar de Pozuelos, Salar de Rio Grande and on LSC's Salar de Salinas Grandes tenements in the Salta Province, timing of completing drilling at Salar de Pozuelos, ability to complete the planned drill holes at Salar de Pastos Grandes, ability to complete the two hole drill programs at Salar de Rio Grande and additional geophysical work at Salar de Jama and the timing thereof. The use of any of the words "could", "anticipate", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on LSC's current belief or assumptions as to the outcome and timing of such future events. Whether actual results and developments will conform with LSC's expectations is subject to a number of risks and uncertainties including factors underlying management's assumptions, such as risks related to: title of the Stella Marys tenements and their ability to be transferred at closing; title, permitting and regulatory risks; exploration and the establishment of any resources or reserves on the Stella Marys tenements or other LSC properties; volatility in lithium prices and the market for lithium; exchange rate fluctuations; volatility in LSC's share price; the requirement for significant additional funds for development that may not be available; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; regulatory, political or economic developments in Argentina or elsewhere; litigation; title, permit or license disputes related to interests on any of the properties in which the Company holds an interest; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the Company's properties; risks and hazards associated with the business of development and mining on any of the Company's properties. Actual future results may differ materially. The forward-looking information contained in this release is made as of the date hereof and LSC is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein. For more information, see the Company's filing statement on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange Inc. 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.
The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release.
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| 1 |
See technical report titled "Review of Four Lithium Exploration Properties in Argentina" prepared for LSC Lithium Inc. and dated January 27, 2017 with an effective date of December 31, 2016 filed on LSC's SEDAR profile. |
| 2 |
See technical report titled "Technical Report on Salinas Grandes Lithium Project" dated April 16, 2012, amended August 12, 2013 prepared for Orocobre Ltd filed on Orocobre's SEDAR profile. |
SOURCE LSC Lithium Corporation
LSC Lithium Corporation, Jessica Helm, VP, Corporate Communications and Investor Relations, Suite 3001, 1 Adelaide Street East, Toronto, Ontario M5C 2V9, (416) 867 9298, Email: [email protected], Web: lsclithium.com
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