November 03, 2016
VANCOUVER, BRITISH COLUMBIA--(Nov. 3, 2016) - Millennial Lithium Corp. (TSX
VENTURE:ML) ("Millennial" or the "Company") reports
that its wholly owned Argentine subsidiary, Proyecto Pastos Grandes S.A.
("PPG SA") has entered into a letter of intent (the "LOI")
with Southern Lithium Corp. (TSX VENTURE:SNL) ("Southern") whereby,
upon execution of a definitive agreement (the "Definitive Agreement")
Southern will be granted the option to acquire up to an eighty (80%) percent
interest in and to the Company's Cruz Property in the Pocitos salar basin in
Salta Province, Argentina.
Terms of the LOI:
The LOI, dated effective October 31, 2016, calls
for PPG SA and Southern to enter into a Definitive Agreement on or before
November 10, 2016.
To earn a seventy (70%) interest in the Cruz
Property, Southern must:
a. pay a US$150,000 non-refundable deposit to PPG
SA (which has been paid);
b. pay an additional US$50,000 non-refundable
deposit to PPG SA on execution of the Definitive Agreement;
c. on closing of the Definitive Agreement, issue
to PPG SA or Millennial (at Millennial's option) US$100,000 worth of common
shares (the "Southern Shares") of Southern with the Southern Shares
being valued at the same price per share as a private placement (the
"Private Placement") Southern is expected to announce concurrently or
shortly after the announcement of the LOI;
d. on closing of the first tranche of the Private
Placement or November 30, 2016 (whichever is earlier) place in a joint
exploration account the sum of US$500,000 (the "Exploration Funds");
e. make US$500,000 of exploration expenditures (the
"Exploration Expenditures") on or before October 1, 2017;
f. pay to PPG SA the sum of US$1,000,000 on
or before October 1, 2017; and
g. pay to PPG SA the sum of US$1,000,000 on or
before October 1, 2018.
((a) to (g) being, collectively, the "Option
Exercise Price").
The LOI calls for the Definitive Agreement to
contain the following terms:
a. that PPG SA is expected to act as operator on
the Property until the Exploration Expenditures are made upon which time
Southern may assume operating responsibility;
b. that Southern can earn an additional ten (10%)
of the Cruz Property by completing, on or before the date that is three years
and six months from the date of the Definitive Agreement, a bankable commercial
feasibility study of the Cruz Property; and
c. additional terms and conditions customary to
an option agreement in the resource industry including terms governing the
planning of Exploration Expenditures.
The Cruz Property was acquired by PPG SA under the
terms of an option agreement (the "Underlying Option Agreement ")
dated effective October 11, 2016 although fully executed after that date. The
Underlying Option Agreement is, for Millennial, an exempt transaction not
subject to Exchange review under the Exchange's Policy 5.3. The Underlying
Option Agreement provides that the Company can acquire up to a one-hundred
(100%) interest in the Cruz Property from the vendor. The Company intends to
use funds from the Option Exercise Price to fund its exercise of the option
under the Underlying Option Agreement.
About the Cruz Property:
The 2,500 hectare Cruz Property lies at the north
end of the Pocitos salar basin in Salta Province, Argentina. The Cruz Property
is at the junction of a large north-south fault system and the
northwest-southeast "megastructure" along which lies the Rincon volcano,
the possible source of the Rincon salar lithium brine occurrences in the Rincon
salar basin immediately north of the Pocitos salar basin.
The 60 kilometre long Pocitos salar basin has been
the subject of surface sampling by several groups in the past. In the 1970's a
government agency made a single shallow drill hole in the Pocitos salar basin.
To the Company's knowledge, that drilling is the only exploration drilling to
date and the results of that drilling cannot be confirmed under NI 43-101 standards
for exploration applicable today. A review by the Company of recent samplings
in the Pocitos salar basin tend to show higher lithium concentration along the
deep faults in the basin, leading to the possibility, which would have to be
confirmed with further exploration, that the faults could be conduits for
lithium-bearing fluids emitted by the northern volcanic center.
The LOI is conditional upon its approval by the TSX
Venture Exchange.
This news release has been reviewed by Iain Scarr,
VP of Development and Exploration of the Company and a qualified person as that
term is defined in National Instrument 43-101.
MILLENNIAL LITHIUM CORP.
Graham Harris, Chairman
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 an
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.