Signs Non-Binding Letter of Intent to Acquire Expanded Land Position
VANCOUVER, British Columbia, June 05, 2017 (GLOBE NEWSWIRE) — Wealth Minerals Ltd. (the “Company” or “Wealth”) – (TSX-V:WML) (OTCQB:WMLLF) (SSE:WMLCL) (Frankfurt:EJZN), reports that it has received positive results from the recently completed transient electromagnetic and gravity geophysical surveys at the Laguna Verde project, in Region III (Atacama), northern Chile (the “Laguna Verde Project”).
The Company also announces that it has signed a letter of intent (the “LOI”) with Atacama Lithium Chile SpA in connection with the grant of an option to acquire additional exploration mining concessions (the “Concessions”) with an aggregate area of approximately 6,300 hectares surrounding the Laguna Verde Project and comprising the Salar Green and Union projects that, if exercised, would bring the Company’s total land position in and surrounding Laguna Verde to approximately 8,700 hectares.
A figure accompanying this announcement is available at: http://www.globenewswire.com/NewsRoom/AttachmentNg/fc686271-7dbf-4264-9a6b-d17dd5929ac1
Geophysical Survey Details
The objective of the gravity and transient electromagnetic (“TEM”) geophysical surveys was to explore for potential lithium brines at depth in the area surrounding the Laguna Verde brine lake by characterizing and mapping the geoelectrical and density structure in the area close to the body of surface water at Laguna Verde. A total of 132 stations of 250m coincident loop TEM data and 108 stations of gravity data were acquired around the Laguna Verde brine lake. The geophysical contractor has reported that the data quality is good to excellent for both the TEM and gravity surveys.
The resulting gravity model suggests a basin whose depth varies between about 400m and just over 1000m within the surveyed area. This is consistent with previously reported historical work completed by a third party, which concluded that the basin thickness was approximately 500m (see news release April 10, 2017). Conductivity variations within this interpreted basin suggest the presence at depth of saline groundwater (potential brine) in lateral proximity to the surface body of water at an interpreted depth of 200 to 300m, with the strongest response at the western end of the lake. A zone of low resistivity is also observed at depth to the northeast of the lake, representing perhaps a (partially) separated volume of saline groundwater.
Drill targeting has not yet been completed but initial results suggest up to three shallow drill targets in close proximity to Laguna Verde (200 to 300m from surface) and an additional drill target to test the interpreted deeper brine to the northeast (>400m from surface).
A figure accompanying this announcement is available at: http://www.globenewswire.com/NewsRoom/AttachmentNg/e072d112-d3ec-479b-8557-8f1884f8d36e
Option Agreement Commercial Terms
Under the terms of the LOI, and subject to satisfactory completion of due diligence by the Company and approval by the TSX Venture Exchange, Wealth Chile and Atacama Lithium SpA will enter into and execute a formal property option agreement (the “Option Agreement”) whereby the vendor will grant to Wealth Chile the exclusive right and option (the “Option”) to acquire 100% legal and beneficial interest in and to the Concessions, free and clear of all liens, charges and encumbrances, in consideration of the payment of an aggregate of USD $4,000,000 and the delivery of an aggregate of 5,000,000 common shares of Wealth, to be paid and delivered to the vendor as follows:
|Within 5 business days of the execution of the Option Agreement:||$||200,000||1,000,000|
|12 Month Anniversary||$||500,000||1,000,000|
|24 Month Anniversary||$||1,000,000||1,000,000|
|36 Month Anniversary||$||1,000,000||1,000,000|
|48 Month Anniversary||$||1,300,000||1,000,000|
During the term of the Option, Wealth Chile will be responsible for maintaining the Concessions in good standing, and paying all fees and assessments and taking such other steps as may be required to do so. There will be no other work commitments, and any work carried out on the Concessions will be at the sole discretion of Wealth Chile. Finder’s fees in an amount equal to up to 5% of the aggregate value of the earn-in consideration for the Option paid and delivered by Wealth Chile may be payable in connection with the Option, which fees will be payable in common shares of Wealth.
All Wealth common shares issued in connection with the Option will be subject to a hold period in Canada of 4 months and one day from the date of issuance.
Henk van Alphen, Wealth’s CEO commented, “Originally Laguna Verde was targeted for its surface brines, however, exploration results over the past 6 months have switched the Company’s focus to a conventional lithium brine model. The recent geophysical survey results are very encouraging. We believe the Project has good potential for discovery of lithium brines at depth and lateral to Laguna Verde and the Company looks forward to drill-testing priority geophysical targets in Q3 2017.”
The Board of Directors of the Company and Lawrence Talbot have agreed that he will step down as Vice-President and General Counsel of the Company. The Board and Management would like to thank Mr. Talbot for his significant contribution to Wealth’s corporate development. The Board has named Jonathan Lotz as the Company’s new Corporate Counsel. Mr. Lotz is a member of the Bars of British Columbia & New York and is a founding partner at the firm Lotz & Company, which has a significant mining and securities law practice. Most recently, Mr. Lotz was a partner at the national law firm of Heenan Blaikie LLP, where he headed the Vancouver mining and securities law practice groups for the firm prior to its dissolution in early 2014. Additionally, the Board would like to announce that Mr. Xiaohuan (Juan) Tang will step down from his role as COO, although he will remain a director of the Company. The Company is also currently increasing its management capacity in Chile to have professionals based in-country to best advance its core lithium projects.
Mr. Keith Henderson, PGeo, is a qualified person as defined by National Instrument 43-101. Mr. Henderson and has reviewed the scientific and technical information that forms the basis of this news release and has approved the disclosure herein. The geophysical surveys at the Laguna Verde Project were undertaken by Southernrock Geophysics, Santiago, Chile. A total of 132 stations of 250m coincident loop TEM data and 108 stations of gravity data were acquired around Laguna Verde. Data quality was good, within specifications, and commensurate with the objectives of the survey. Data was processed according to standard methodologies. 1D inversion modelling was used to generate compiled sections, plan maps, and 3D visualizations of the results of the TEM survey, and Bouguer slab and 2D basin inversion models used to generate models for the gravity dataset.
About Wealth Minerals Ltd.
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. To date, the Company has positioned itself to develop the Aguas Calientes Norte, Pujsa and Quisquiro Salars in Chile (the Trinity Project), as well as to work alongside existing producers in the prolific Atacama Salar, in addition to its recently announced Laguna Verde lithium project acquisition. The Company continues to aggressively pursue new acquisitions in the region. Lithium market dynamics and a rapidly increasing metal price are the result of profound structural issues with the industry meeting anticipated future demand. Wealth is positioning itself to be a major beneficiary of this future mismatch of supply and demand. The Company also maintains and continues to evaluate a portfolio of precious and base metal exploration-stage projects.
On Behalf of the Board of Directors of
WEALTH MINERALS LTD.
“Hendrik van Alphen”
Hendrik van Alphen
Chief Executive Officer
Neither 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 news release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian and U.S. securities legislation, including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the anticipated content, commencement, timing and cost of exploration programs in respect of the Laguna Verde Project and otherwise, anticipated results from the exploration activities, the discovery and delineation of mineral deposits/resources/reserves on the Laguna Verde Project, the anticipated business plans and timing of future activities of the Company, the successful negotiation and execution of a definitive option agreement for the Concessions and the Company’s expectation that it will be able to enter into agreements to acquire interests in additional mineral properties, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: “believe”, “expect”, “anticipate”, “intend”, “estimate”, “postulate” and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, issues raised during the Company’s due diligence on the Concessions and the Laguna Verde Project, operating and technical difficulties in connection with mineral exploration and development activities, actual results of exploration activities, the estimation or realization of mineral reserves and mineral resources, the timing and amount of estimated future production, the costs of production, capital expenditures, the costs and timing of the development of new deposits, requirements for additional capital, future prices of lithium and precious metals, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, labour disputes and other risks of the mining industry, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, changes in laws, regulations and policies affecting mining operations, title disputes, the inability of the Company to obtain any necessary permits, consents or authorizations required, including TSX-V acceptance of any current or future property acquisitions or financings and other planned activities, the timing and possible outcome of any pending litigation, environmental issues and liabilities, and risks related to joint venture operations, and other risks and uncertainties disclosed in the Company’s latest interim Management Discussion and Analysis and filed with certain securities commissions in Canada. All of the Company’s Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company’s mineral properties.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements in this news release or incorporated by reference herein, except as otherwise required by law.
CONTACT: For further information, please contact: Marla Ritchie Phone: 604-331-0096 Ext. 3886 or 604-638-3886 E-mail: [email protected]