From: LoneClone
Latin American Minerals and Grupo Minero Los Boros Combine Lithium Properties Into Lithium Americas Corp.
Thu Jun 11, 2:15 PM
ca.news.finance.yahoo.com
TORONTO, ONTARIO--(Marketwire - June 11, 2009) - Latin American Minerals Inc. (TSX VENTURE: LAT.V) (the "Corporation") announces that is has combined its Argentinean lithium-potash properties (100,254 hectares (Figure 1)) with those of Grupo Minero Los Boros S.A. ("Los Boros"), in Lithium Americas Corp. ("Lithium Americas"). The contiguous lithium properties at the Corporation's Cauchari salt lake and Los Boros's Olaroz salt lake (collectively the "Lithium Properties") cover 30,000 hectares. See below for regional maps showing the land tenure of mineral properties in the district and in the Cauchari and Olaroz salt lakes.
The Lithium Properties represent the consolidation of lithium salar properties located in the lithium brine district of Puna, Argentina. This lithium brine region encompassing Chile, Argentina and Bolivia is estimated to hold over 90% of the world's lithium brine reserves (Keith Evans, Lithium Supply & Markets Conference, 2009). The Los Boros properties (11,987 hectares) cover part of the Cauchari salar and approximately one-third of the Olaroz salar where ASX-listed Orocobre Limited recently announced completion of a scoping study on its adjacent 7,600 hectare Olaroz salar property (Figure 2).
Over 37 surface brine samples collected in regular intervals across the 30,000 ha Cauchari and Olaroz salt lakes yielded lithium grades averaging 800 parts per million (ppm), potassium grades averaging 0.5% and a Mg/Li ratio averaging 3.6. This brine chemistry is favourable for lithium and potash production utilizing evaporation pond technology employed in Atacama (SQM, Chile) and Silver Peak (Foote Mineral Company, U.S.). Salt lake brine lithium deposits, in which the lithium brine is pumped to the surface, are generally less expensive to mine than hard rock lithium (spodumene) deposits.
The Corporation transferred its lithium and potash assets in the region to Lithium Americas' Argentinean subsidiary for 8.4 million Lithium Americas common shares, a $1,000,000 interest free (other than on default) promissory note, of which $300,000 is payable within 45 days, and the balance payable from subsequent Lithium Americas financings. In addition, the Corporation has the right to maintain its pro rata equity interest in Lithium Americas while its interest is at least 10%. The Corporation will have the right to reacquire its property interests after 24 months if Lithium Americas has not become publicly listed by that time. The board and management of Lithium Americas will include representatives of the Corporation and Los Boros.
Lithium Americas' Argentinean subsidiary holds an option to acquire 100% of the subsurface brine salts on the Los Boros Properties in consideration of US$3 million in exploration expenditures in the first three years, US$3 million in expenditures towards a feasibility study in the following two years, yearly property payments of US$70,000 and a three percent net profit interest on commercial production. In addition, Lithium Americas is required to be publicly listed within two years and Los Boros is to then receive 3 million Lithium Americas common shares. Los Boros will have the right to reacquire its property interests after 24 months if Lithium Americas has not become publicly listed by that time.
"We are pleased with the opportunity to combine our early stage salares properties with the more advanced properties of Grupo Minero Los Boros S.A. into a new venture where we can maintain a significant equity stake," said David Wahl, the Corporation's CEO.
Latin American Minerals is a mineral exploration company focused on the acquisition and development minerals projects in under-explored but highly prospective countries of Latin America.
Dr. Waldo Perez, P.Geo. is the Corporation's internal Qualified Person under the requirements of National Instrument 43-101 and is responsible for this press release.
David G. Wahl
Latin American Minerals Inc.
President and CEO
(416) 363-0841
www.latinamericanminerals.com |
