PE.VN acquire lithium property in Nevada PURE ENERGY MINERALS LIMITED SIGNS MOU FOR NEVADA LITHIUM BRINE PROPERTY
Pure Energy Minerals Ltd. has executed a memorandum of understanding with privately owned GeoXplor Corp., setting the key terms for the definitive agreement whereby the company has the right to acquire a 100-per-cent interest in 71 placer mining claims known as the CV and DB claims located in Clayton Valley, Esmeralda county, Nevada.
Proposed transaction
Pure agrees to pay GeoXplor a $40,000 non-refundable deposit for the exclusive right, expiring Feb. 25, 2014, to conduct a due diligence review on the property, and to negotiate the final terms and conditions in a formal agreement, which is to be executed no later than Feb. 25, 2014.
Pure will pay to GeoXplor the sum of $100,000 on the date of execution of the definitive agreement, and $250,000 on the succeeding first, second, third and fourth anniversaries of the effective date.
On the effective date, Pure will issue to GeoXplor one million common shares of Pure. On each of the first, second, third and fourth anniversary dates, Pure will issue GeoXplor 1,462,500 common shares of Pure.
Pure will incur exploration expenditures of $750,000 (U.S.) on or before the first anniversary of the effective date, an additional $1-million (U.S.) on or before the second anniversary of the effective date, an additional $2-million (U.S.) on or before the third anniversary of the effective date. On or before the fourth anniversary of the effective date, Pure shall either have prepared and delivered to GeoXplor a prefeasibility study (as the term is defined in National Instrument 43-101 -- Standards of Disclosure for Minerals Projects adopted by the Canadian Securities Administrators) in respect to the property having commenced commercial production on the property.
If at any time, Pure, its assignee or its third party joint venturer delivers a positive feasibility study (as that term is defined in NI 43-101) or a production permit is issued in respect of all or a portion of the property, Pure will pay to GeoXplor an additional $2-million (U.S.) in cash or shares of Pure at the election of GeoXplor.
On or before the fifth anniversary, Pure shall pay a $250,000 (U.S.) advance royalty and on each subsequent anniversary of the effective date. All such advance royalty payments paid by Pure will be credited toward the royalty due to GeoXplor.
Upon satisfaction of the requirements of this MOU, Pure has acquired a 100-per-cent interest in the property subject to a 5-per-cent royalty.
The above proposed transaction is subject to the completion of the definitive agreement by the parties and receipt of all required regulatory approvals to the transaction.
In 2010 previous exploration drilling confirmed extended lithium-enriched brines at depth on the property. Two reverse-circulation drill holes, spaced 2.3 kilometres, intersected the anticipated target horizon at 145 metres depth up to 317 m drilled depth with respect to lithium values larger than 100 milligrams per litre in 2010. Their sample results showed values of lithium ranging from 100 mg/l to 400 mg/l, with Li values of 370 mg/l over 30 m, and Li values averaging 285 mg/l over 145 m of intersection. The mineralized zone is immediately south of the current lithium-producing property in Silver Peak, Nev.
A deeper-situated second horizon is expected below the above-mentioned zone; however, it has not been drill tested yet.
On neighbouring properties to the west and northwest, controlled by Rockwood Lithium Corp., lithium is economically produced from deep-seated lithium brines, assuming the same horizon, since 1966 with average grades ranging from 100 mg/l to 300 mg/l.
With the addition of the CV and DB claims, Pure has expanded its opportunity in Nevada to over 7,000 acres. In 2012, a geophysical survey by Pure on its Alkali Flats (AF) claims indicated similar drill targets. Pure Energy plans to drill test all the potential zones in its upcoming drill program slated for next year.