VANCOUVER, Nov. 19, 2013 /CNW/ - Pure Energy Minerals Limited ("Pure" or
the "Company") (TSXV: PE) is pleased to announce that is has executed a
Memorandum of Understanding (the "MOU") with privately owned GeoXplor
Corp. ("GeoXplor") setting the key terms for the definitive agreement
whereby the Company has the right to acquire a 100% interest in 71
placer mining claims known as the CV and DB claims (the "Property")
located in Clayton Valley, Esmeralda County Nevada.
Proposed Transaction:
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Pure agrees to pay GeoXplor a CDN $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 (the "Definitive Agreement") which is to be
executed no later than February 25th, 2014 (the "Effective Date").
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Pure will pay to GeoXplor the sum of CDN $100,000 on the date of
execution of the Definitive Agreement and $250.000 on the succeeding
first, second, third and fourth anniversary of the Effective Date.
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On the Effective Date, Pure will issue to GeoXplor 1,000,000 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
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Pure will incur exploration expenditures of US$$750,000 on or before the
first anniversary of the Effective Date, an additional US$1,000,000 on
or before the second anniversary of the Effective Date, an additional
US$2,000,000 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 "pre-feasibility
study" (as the term is defined in National Instrument 43-101 Standards
of Disclosure for Minerals Projects adopted by the Canadian Securities
Administrators ("NI-43101")) in respect to the property of have
commenced commercial production on the Property.
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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 and additional US $2,000,000
in cash or shares of Pure at the election of GeoXplor.
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On or before the fifth anniversary Pure shall pay a US $250,000 advance
royalty and on each subsequent anniversary of the Effective Date. All
such advance royalty payments paid by Pure will be credited towards the
Royalty due to GeoXplor.
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Upon satisfaction of the requirements of this MOU, Pure have acquired a
100% interest in the property subject to a 5% 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, 2.3KM spaced, intersected the anticipated target horizon
at 145 m depth up to 317 m drilled depth with respect to lithium values
larger than 100 mg/L in 2010. Their sample results showed values of
lithium ("Li") ranging from 100 mg/L to 400 mg/L with Li values of 370
mg/L over 30m , and Li values averaging of 285 mg/L over 145m of
intersection. The mineralized zone is immediately south of the current
lithium producing property in Silver Peak, NV. (source: http://rodinialithium.com/news/index.php?&content_id=130 and http://rodinialithium.com/news/index.php?&content_id=99).
A deeper situated second horizon is expected below the above mentioned
zone, however it has not been drill tested yet.
On neighboring properties to the West and North West, controlled by
Rockwood Lithium Corporation lithium is economically produced from deep
seated lithium brines, assumingly the same horizon, since 1966 with
average grades ranging from 100 - 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 their Alkali Flats ("AF") claims indicated similar drill
targets. Pure Energy plans to drill test all the potential zones in
their upcoming drill program slated for next year.
Qualified Person:
This release has been reviewed and approved by Gerhard Jacob, M.Sc.,
EurGeol., Pure Energy Minerals Limited, Consulting Geologist - a
Qualified Person as defined by National Instrument 43-101.
About Pure
Pure Energy Minerals Limited (TSX-V.PE) is an innovative hybrid lithium
exploration and processing technology company based in Vancouver,
British Columbia. PURE is fully engaged in the acquisition, exploration
and development of innovative mineral processing technologies to test
and develop in conjunction with prospective lithium mineral properties.
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 release.
We Seek Safe Harbour
On behalf of the Board of Directors
Robert Mintak, CEO
SOURCE Pure Energy Minerals Limited
