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VANCOUVER, Dec. 9 /CNW Telbec/ - ELECTRIC METALS INC. (TSX-V: EMI.A) (the "Company") announces that it has entered into a definitive property option agreement (the "Agreement") with Salta Water Co. ("Salta"), a private Cayman Island company, to acquire an undivided 60% interest in certain mineral claims situated in Salta Province, Argentina (the "Salta Transaction"). Salta is arm's length to the Company.
The property consists of five cateos (exploration concessions) covering approximately 42,315 hectares in the Puna plateau, a high elevation basin-like plain on the eastern slope of the Andes Mountains of Argentina (the "Property"). A National Instrument 43-101 compliant geological report for the Property has been commissioned and is expected to be completed shortly.
In order to exercise the option and acquire 60% ownership of the Property (subject to a 1.5% net returns royalty in favour of Salta), the Company must, over a three year period, pay a total of US$350,000, issue 1,000,000 common shares of the Company and spend a minimum of US$1,000,000 in exploration costs. The Company may purchase the remaining 40% interest in the Property for US$6,000,000 for two years following the option exercise provided that the Company pays Salta US$100,000 per year as advanced royalty payments. If the company chooses not to exercise its option to acquire the remaining 40% interest, it will be required to carry Salta through to commencement of commercial production.
Change of Business
On August 31, 2009, the Company announced that it had signed a definitive Mineral Option Agreement with GeoXplor Corp., to acquire 100% of the SV Lithium Mineral Claims (seventy mineral claims located in Esmeralda County, Nevada, USA). The property comprises approximately 11,200 acres in the Big Sky Valley which is adjacent to the Clayton Valley, location of the only lithium brine operation in the United States, the Chematall-Foote Silver Peak operation.
The completion of the Salta Transaction in addition to the acquisition of the SV Lithium Mineral Claims will be a "change of business" (the "COB") for the Company pursuant to Policy 5.2 of the TSX Venture Exchange (the "Exchange"), with a new focus on the resource industry. The Company was previously engaged in the fitness and recreational sports centres business through its ownership of the operation right and use of the trademark of a health and sports club business, namely, the "River Club" in Richmond, British Columbia.
The closing of the COB is subject to certain conditions, including Exchange and shareholder approval.
Management Following Closing of Transaction
The background of each of the expected directors and officers of the Company upon completion of the COB, is expected to be as follows:
Donald Gee, CA, B.Sc (Geology), President, CEO and Director
Mr. Gee has been the CEO and a director of the Company since June 2009. Mr. Gee has been a Chartered Accountant in British Columbia since May, 1979, after he obtained his Bachelor of Science (Geology) in 1973 and his Licentiate in Accounting in 1976, both from the University of British Columbia. Mr. Gee is a member of the Canadian Institute of Mining and Metallurgy and the Society of Economic Geologists.
Mr. Gee has over 28 years of experience with private and public company financing, as well as corporate and capital structuring and management. Since January, 1994, Mr. Gee has been the President of Cantech Capital Corp., a management consulting business specializing in public company and corporate finance advice.
Wan Jung, CGA, CFO and Director
Mr. Jung has been the CFO and a director of the Company since June 2009 . Mr Jung has been a member of the Certified General Accountants of British Columbia since 1985. Mr. Jung has also served as the Vice-President - Finance of Avigilon Corporation, a developer of a high definition surveillance system, since October, 2004. Previously, he was the former Director of Finance with Nike Canada Ltd. And former VP Finance for QImaging Corp.
Gilles Arseneau, Ph.D., P. Geo, Director
Dr. Arseneau has been a director of the Company since June 2009. Dr. Arseneau has over twenty five years experience in exploration project management and has extensive knowledge of geostatistical mineral resource estimations and reserve audits. Mr. Arsenault served for three years as Manager of Geology for TSX Venture Exchange in Vancouver and is currently the Manager of Geology for an engineering consulting group based in Vancouver.
Patrick M. McAndless, B.Sc., P. Geo, Director
Mr. McAndless has been a director of the Company since June 2009. Mr. McAndless has served as the Vice President - Exploration of Imperial Metals Corporation since March 1995, where he oversees the company's exploration and development programs, property evaluations and land management. Mr. McAndless has been involved in mineral exploration for four decades accumulating extensive knowledge and expertise in the evaluation of mineral projects. McAndless has been a Professional Geoscientist since November, 1992.
Des Balakrishnan, Corporate Secretary
Mr Balakrishnan has been the Corporate Secretary of the Company since June 2009. Mr. Balakrishnan is a Vancouver lawyer and has practiced law as a partner at the Vancouver office of Lang Michener LLP since February, 2002. Mr. Balakrishnan received his Law Degree from the University of Alberta in April, 1997 and was called to the British Columbia Bar in May, 1998. He received his Bachelor of Arts from Simon Fraser University in April, 1994. Mr. Balakrishnan is currently the Corporate Secretary of Acero-Martin Exploration Inc., Secretary of Yankee Hat Minerals Ltd., director of Copacabana Capital Ltd., Assistant Corporate Secretary of Great Canadian Gaming Corporation, Corporate Secretary of Iciena Ventures Inc., Corporate Secretary of Network Exploration Ltd., and a director of Probe Resources Ltd.
The Company intends to apply for an exemption from the sponsorship requirements of the policies of the Exchange, however, there are no assurances that such an exemption will be obtained.
Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and if applicable pursuant to Exchange Requirements, majority of the minority shareholder approval. The transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of the Company should be considered highly speculative.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
This news release may include forward-looking statements based on assumptions and judgements of management of the Company regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. The Company disclaims any intention or obligation to revise or update such statements except as may be required by law.
SOURCE ELECTRIC METALS INC.
For further information: For further information: Electric Metals Inc.: "Donald Gee", Donald Gee, President, CEO and Director; Mr. John Rak, Byron Capital Markets, a division of Byron Securities Ltd., (647) 426-1663; Renmark Financial Communications Inc.: Henri Perron, firstname.lastname@example.org; John Boidman, email@example.com; Media: Valérie Lacasse, firstname.lastname@example.org; (514) 939-3989, (416) 644-2020; www.renmarkfinancial.com