Noka Resources News
Noka to acquire Columbus lithium project in Nevada
2015-11-20 07:04 ET - News Release
Mr. Nav Dhaliwal reports
NOKA RESOURCES ACQUIRES LITHIUM PROJECT, NEVADA
Noka Resources Inc. has entered into an agreement with arm's-length vendors to acquire a 100-per-cent interest in the Columbus lithium project, comprising 1,920 acres of federal placer claims, located in the Big Smokey Valley, Esmeralda county, Nevada. The project is 30 minutes by road from the Clayton Valley, where the Albemarle's Silver Peak lithium mine is located and where Pure Energy has recently identified a National Instrument 43-101 inferred resource of 816,000 metric tonnes of lithium carbonate equivalent (LCE) at a cut-off of 20 milligrams per litre.
The project is located within the Columbus salt marsh, near Coaldale and west of ground controlled by Ultra Lithium. The principal target at the project is a large circular gravity low anomaly which is interpreted as an infilled basin which may contain lithium-rich brine. The Big Smokey Valley was preliminarily drilled in 1979 by the United States Geological Survey and anomalous lithium values were encountered in the basin sediments.
It is the company's belief that the quality and concentrations of lithium brines discovered in the Clayton Valley are present in the Big Smokey Valley. Tesla Motors, which in September of 2015 signed an offtake agreement with Pure Energy, is driving the current lithium boom in Nevada. Tesla is constructing a lithium-ion battery factory, called Gigafactory, just outside of Sparks, Nev., which is scheduled to be operational in 2016/2017.
Under the terms of the agreement, the company can earn a 100-per-cent interest in the project by issuing 1.6 million common shares to each of the vendors, for a total of 3.2 million common shares. The company must also make cash payments totalling $450,000 over the next three years, with the initial payment being due in December, 2016, and incur no less than $1-million in exploration expenditures within 36 months of the agreement. A 1-per-cent gross overriding royalty has also been granted to the vendors, of which 0.5 per cent can be purchased by the company for $1-million. This transaction is subject to TSX Venture Exchange approval.
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