November 11th 2016 – Vancouver, British Columbia – LiCo Energy Metals Inc. “The Company” or “LiCo” TSV-V: LIC OTCQB: WCTXF is pleased to announce that it has entered into an option agreement with Nevada Energy Metals Inc. (“Nevada”) dated November 10, 2016 (the Agreement”), whereby the Company may earn an undivided 70% interest, subject to a 3% Net Smelter Return Royalty, in the existing Black Rock Desert Lithium Project that consists of 128 placer claims (2,560 acres/ 1,036 hectares) in southwest Black Rock Desert, Washoe County, Nevada. The Agreement is “non-arms’ length” and so constitutes a related party transaction, as the Company’s President and CEO is also the President and CEO of Nevada, and is subject to TSX Venture Exchange (the “Exchange”) approval.
“This Agreement significantly adds to our lithium exploration portfolio in Nevada and we are looking forward to working with Nevada Energy Metals to further explore and develop this exciting property.” States CEO Rick Wilson.
The geologic setting combined with the presence of lithium in both active geothermal fluids and surface salts within the Black Rock Desert property match characteristics of lithium brine deposits at Clayton Valley, Nevada and in South America. Geothermal fluids adjoining the claims are known to contain anomalous lithium values and a recently completed surface silt sampling program confirmed values containing up to 520 ppm lithium. Although geological work has been undertaken for geothermal energy production in the area, the lithium in brine potential of the playa has not been specifically studied. Initially, the lithium target in this basin was highly conceptual, however, recent exploration results are highly encouraging and warrant a detailed exploration drilling for a Clayton Valley type brine deposit.
Pursuant to the terms of the Agreement, the Company may exercise the option as follows:
- making a payment of US$20,000 immediately upon execution of this Agreement;
- making a payment of US$150,000 upon receipt of the Exchange Approval;
- completing the issuance to the Optionor of 4,500,000 fully-paid and non-assessable common shares in the capital of the Optionee as follows: 1,500,000 Consideration Shares upon receipt of the Exchange Approval; 1,500,000 Consideration Shares on or before the one (1) year anniversary of the Agreement Date; and 1,500,000 Consideration Shares on or before the two (2) year anniversary of the Agreement Date; and
- incurring an aggregate of $1,250,000 in Exploration Expenditures on the Property on or before the three (3) year anniversary of the Agreement Date.
Finder’s fees will be paid on behalf of the transaction in accordance with Exchange policies.
About the Black Rock Desert Property:
The western arm of the Black Rock Desert covers an area of about 2,000 square kilometers and contains 5 of the 30 currently listed Known Geothermal Resource Areas in Nevada. The Property covers an area of playa underlain by a moderately deep basin interpreted from gravity and seismic surveys indicating a maximum thickness of valley-fill deposits of about 1,200 m/ 3,600 ft. A high salt content prevents any significant vegetation from growing on the playa surface. Locally, the basin is being fed in part by boiling springs and siliceous sinter containing strongly anomalous Lithium values (5mg/l) that flank the property on the west side. (U.S. GEOLOGICAL SURVEY Open-File Report 81-918.) While these lithium values are well below those of producing lithium brines, they do represent a significant source of metal available for evaporative concentration within the playa basin.
Qualified Person: The technical content of this news release has been reviewed and approved by Alan Morris CPG, Elko, Nevada
About LiCo Energy Metals: https://licoenergymetals.com/
LiCo Energy Metals Inc. is a fully funded Canadian based exploration company who’s primary listing is on the TSX Venture Exchange. The Company’s focus is directed towards exploration for high value metals integral to the manufacturing of lithium ion batteries.
The Company has an option to earn 100% ownership, subject to a royalty, in the Teledyne Cobalt Project located near Cobalt. Ontario. The Property adjoins the south and west boundaries of claims that hosted the Agaunico Mine. From 1905 through to 1961, the Agaunico Mine produced a total of 4,350,000 lbs. of cobalt and 980,000 oz. of silver. A significant portion of the cobalt that was produced at the Agaunico Mine located along structures that extended southward onto property currently under option to LiCo Energy Metals.
In addition, LiCo Energy Metals has an option to acquire a 100% interest, subject to a 3% NSR, on a large lithium exploration project at the Humboldt Salt Marsh in Dixie Valley, Nevada. The geologic setting and presence of lithium in active geothermal fluids and surface salts in Dixie Valley match characteristics of producing lithium brine deposits at Clayton Valley, Nevada and in South America.
The Company is planning an exploration programs for all its properties over the next several months.
On Behalf of the Board of Directors:
Rick Wilson, President & CEO
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.
Disclaimer for Forward-Looking Information:
This news release may contain forward-looking statements which include, but are not limited to, comments that involve future events and conditions such as Exchange approval of the Option Agreement and the Company’s ability to exercise the Option, which are subject to various risks and uncertainties. Except for statements of historical facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt and security of mineral property titles, availability of funds, and others are forward-looking. Forward-looking statements are not guarantees of future performance and actual results may vary materially from those statements. General business conditions are factors that could cause actual results to vary materially from forward-looking statements.