World News: 13:00 GMT Monday 11th February 2019. [Wealth Minerals Ltd. via Globe Newswire via SPi World News]
VANCOUVER, British Columbia, Feb. 11, 2019 (GLOBE NEWSWIRE) -- Wealth Minerals Ltd. (the “Company” or “Wealth”) - (TSXV: WML; OTCQX: WMLLF; SSE: WMLCL; Frankfurt: EJZN), announces that, subject to TSX Venture Exchange (“TSXV”) acceptance, the Company has secured loans in the aggregate amount of $1.5 million (the “Loans”) with certain arm’s length lenders (the “Lenders”).
The Loans have a one year term and bear interest at a rate of 8% per annum compounded annually, payable on the maturity date. The Company has agreed to issue in aggregate 3,750,000 non-transferable bonus common share purchase warrants (each, a “Bonus Warrant”) to the Lenders. Each Bonus Warrant will entitle the holder to purchase one common share in the capital of the Company at an exercise price of $0.40 per share for a period of one year. All securities issued pursuant to the Loans will be subject to a hold period of four months and one day in Canada from the date of issuance. The funds available from the Loans will be used for general working capital and to make property payments on the Company’s Atacama lithium project (“Atacama” or the “Atacama project”).
The Company has renegotiated the terms of the Atacama Option to Purchase Agreement (see news release dated November 23, 2016) with the underlying property vendor, Atacama Lithium SpA, under which agreement Wealth has been given the exclusive right and option to acquire a 100% royalty-free interest in 144 exploration concessions comprising in aggregate 46,200 hectares in Region II of Antofagasta, northern Chile.
Pursuant to the renegotiated terms, the remaining USD $5,000,000 cash payment and issuance of 5,000,000 Wealth common shares due March 1, 2019, has been rescheduled as follows:
Henk Van Alphen, CEO of Wealth, commented, “Given the current soft state of the equity market for lithium-focused companies, these revised terms will benefit Wealth’s shareholders as management continues to seek the best options for funding the Company’s property option payments and work programs.”
Wealth has completed a comprehensive review of its lithium asset portfolio and, as a result, changes have been implemented to conserve cash and focus the Company’s financial and human resources on the its most impactful projects, namely the Atacama and Trinity projects.
At the Laguna Verde project, the project size has been reduced, allowing the Company to focus on the claims considered to have the most potential. The Laguna Verde property option has been relinquished, however the Salar Green & Union property options remain in good standing, resulting in a Laguna Verde project area reduction from approximately 8,738 hectares to 6,300 hectares. In practical terms, this means that the claims relating to the above-ground surface brine are no longer held by the Company under option and the remaining claims cover areas considered prospective for sub-surface brines. The interpretation of brine potential results from extensive geophysical Transient Electromagnetic (TEM) surveys completed by the Company on the Laguna Verde Project (see news release dated September 17, 2018). The Company continues to hold all property areas where TEM data has established drill targets.
The Five Salars project, acquired under option in April 2017, has been relinquished in its entirety in consideration for a USD $500,000 payment to the underlying property vendor, Atacama Lithium SpA, and the Company has no further obligations for or interest in the property.
In connection with the project review process, the Company has also acquired three new project areas, subject to TSXV acceptance thereof. The Flamenco, Vapor and Harry projects (the “Acquisitions”) (Figure 1) have been acquired for total consideration of 1,450,000 common shares of the Company. With the acquisition of the Harry project (Figure 2), Wealth has increased its land position in the Atacama basin from 46,200 hectares to approximately 54,100 hectares.
The Flamenco project is located in the Huasco salar and consists of 2,800 hectares. The Flamenco acquisition provides Wealth with a position in the Huasco without incurring future cash option payment obligations. Huasco is a play with consolidation potential. Other land owners in the Huasco salar include Freeport McMoRan, BHP Billiton and Codelco. Readers are cautioned that the properties held by Freeport McMoRan, BHP Billiton and Codelco are adjacent properties and that Wealth has no interest in or right to acquire any interest in any part of the properties and that mineral deposits on adjacent or similar properties are not in any way indicative of mineral deposits on Wealth’s position in the Huasco salar.
The Vapor project is located in the Ollague salar and consists of 4,200 hectares. Recent drilling activity by a peer company in the area returned lithium grades up to 480 Li mg/l. Readers are cautioned that the properties held by a peer company are adjacent properties and that Wealth has no interest in or right to acquire any interest in any part of the properties and that mineral deposits on adjacent or similar properties are not in any way indicative of mineral deposits on Wealth’s position in the Ollague salar.
Photos accompanying this announcement are available at
Henk Van Alphen, CEO of Wealth, commented, “The Acquisitions provide Wealth with an extended land position in the Atacama basin, and continued optionality with what I believe to be an inevitable lithium project consolidation in Chile. The Acquisitions have been completed without cash payments, allowing the Company to preserve cash moving forward. Wealth retains its core focus on Atacama, but also continues to have a promising portfolio of assets, any one of which could be a company-maker in its own right.”
Keith J. Henderson, P.Geo, a qualified person as defined by National Instrument 43-101 , has reviewed the scientific and technical information that forms the basis for the technical disclosure in this news release. Mr. Henderson is not independent of the Company as he is a shareholder, a consultant to the Company and holds incentive stock options of the Company.
Wealth is a mineral resource company with interests in Canada, Mexico, Peru and Chile. The Company’s main focus is the acquisition and development of lithium projects in South America. To date, the Company has positioned itself to develop the Quisquiro salar in Chile (the Trinity project), as well as to work alongside existing producers in the prolific Atacama salar, where the Company has a substantial licenses package. The Company has also positioned itself to play a role in asset consolidation in Chile with various lithium properties throughout the country.
Lithium market dynamics and a rapidly increasing metal price are the result of profound structural issues with the industry meeting anticipated future demand. Wealth is positioning itself to be a major beneficiary of this future mismatch of supply and demand. The Company also maintains and continues to evaluate a portfolio of precious and base metal exploration-stage projects.
For further details on the Company readers are referred to the Company’s website () and its Canadian regulatory filings on SEDAR at .
On Behalf of the Board of Directors of
For further information, please contact: Marla RitchiePhone: 604-331-0096 Ext. 3886 or 604-638-3886E-mail:
Globe Newswire: 13:00 GMT Monday 11th February 2019
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