MGX Minerals Inc. (MGX) has signed a definitive option agreement, after completing the due diligence in relation to the Memorandum of Understanding (MoU) dated 8 August 2018, to acquire 50% of the issued shares of Chilean Lithium Salars SpA (CLS). CLS is a wholly owned subsidiary of Chilean Lithium Salars Pty Ltd. (CLSH) and holds a 100% interest in three prospective lithium exploration projects located in Chile, including Francisco Basin, Laguna Brava and Laguna Escondida Lithium projects.
Two samples from the Laguna Brava project were received at PurLucid Treatment Solutions Inc. (PurLucid) facilities in Calgary (Alberta) to undergo pilot testing to prepare a Rapid Lithium Extraction unit deployment. Drilling contractors will be on site this week to prepare the drilling programme at Francisco Basin project, which will be overseen by SRK Consulting to deliver a 43-101 complaint Resource Estimation as soon as the exploration programme is completed.
Following the positive response from the Chilean state agency National Geology and Mining Service (SERNAGEOMIN) and the Environmental Assessment Service (SEA), the company plans to ship a rapid lithium brine system shortly. The Special Lithium Operation Contract “CEOL”, is a requirement to carry any lithium related commercial activity in Mining Concessions granted after 1983.
The portfolio of projects are located within the central volcanic zone in the foothills of the Andes mountain range on the eastern side of Chile. All the projects are located at altitudes exceeding 4000 m.
Terms of the option agreement
To acquire an undivided 50% interest in CLS, MGX has agreed to make option payments totaling US$1.5 million. The first US$100 000 portion of the option payments are payable in cash at the discretion of CLS while the remainder of options payments will be payable in common shares of the company. MGX has agreed to incur exploration expenditures totaling US$2 million and also complete an NI 43-101 resource estimate on at least one of the Projects no later than 20 months after the effective date of the MoU.
MGX will act as project operator and appoint Aldo Boitano, current project manager for CLS, as project manager to work alongside Kura Minerals. CLSH shall contribute an equal amount of expenditures to maintain its respective interest in CLS. MGX also maintains the right to participate as a service provider of the engineering, construction and/or procurement of a brine processing plant using its rapid lithium extraction technology. Closing of the transaction remains subject to due diligence.
To read the full report: https://www.mgxminerals.com/investors/news/2018/413-mgx-signs-definitive-agreement-to-acquire-lithium-brine-projects-in-chile-permitting-in-place-to-commence-drill-program.html
Read the article online at: https://www.globalminingreview.com/finance-business/09102018/mgx-minerals-to-acquire-shares-in-chilean-lithium-salars-spa/
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