Mineral Hill Industries Ltd. Acquires Lithium Brine Project
* Press Release
* Source: Mineral Hill Industries Ltd.
* On Wednesday September 23, 2009, 5:09 pm EDT
finance.yahoo.com
<< Trading Symbols: ---------------- TSX Venture Exchange: MHI Frankfurt Stock Exchange: N8Z/WKN: AODLHP Pink Sheets: MHIFF >>
VANCOUVER, Sept. 23 /CNW/ - Mineral Hill Industries Ltd. (TSXV: MHI) (FSE: N8Z) (the "Company" or "Mineral Hill") is pleased to announce that it has signed a letter of intent to acquire a 100% interest in the Chickadee Creek Lithium Brine Property ("Chickadee"), located approximately 200 kilometres west of Edmonton, Alberta.
The Chickadee Project consists of six permit applications covering approximately 135,000 acres (~55,000 hectares) prospective for lithium and encompassing known occurrences within formation waters.
The Chickadee Project is situated over the Devonian age Beaverhill Lake and the Woodbend (Leduc) carbonate reef complexes. Formation water brines are spatially associated with these two complexes and are known to contain anomalous concentrations of lithium. The property is directly adjacent to Channel Resources Fox Creek Lithium Project as well as Sidon International Resources Corp.'s Lithium Project.
Lithium concentrations reported from the area are similar to those currently mined in Clayton Valley, Nevada. Chemetall-Foote Corp's Silver Peak operation, located in Clayton Valley, is the only lithium brine producer in North America and has been in operation since 1966. Production at Clayton Valley was initially from brines that averaged 400 mg/l lithium. In 1998, production from Clayton Valley was reported at an average concentration of 160 mg/l lithium (Harben and Edwards, 1998).
The property has been acquired from Zimtu Capital Corp. and 877384 Alberta Ltd (the "Vendors") and is subject to the signing of a formal Mineral Property Acquisition Agreement and TSX Venture Exchange approval. The Company has agreed to pay the Vendors $20,000 in cash, issue 2,000,000 common shares and grant a 2% net smelter return royalty, with an option to buy back 1% of the royalty for $1 million. The 2,000,000 common shares will be issued as follows:
A) 1,000,000 on TSX-V approval of the Mineral Property Acquisition
Agreement
B) 1,000,000 on that day which is 30 months from the date of the TSX-V
approval
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Jeffrey Reeder, P.Geo, a qualified person.
With the addition of the Chickadee Creek Lithium Brine Property alongside our three properties totaling approximately 2300 hectares of mineral spodumene located in the township of Figuery 32 kilometers northwest of Val-d'Or Quebec, Mineral Hill has a substantial presence in the lithium market, says Dieter Peter, President and CEO of Mineral Hill.
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Neither the 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.
For further information
Dieter Peter, Chairman & CEO, Telephone: (604) 685-4170
John Punzo, Director, Telephone (direct) (604) 685-4170 |
