Electric Metals signs property option agreement to acquire lithium project
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
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
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
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
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:
Gilles Arseneau, Ph.D., P. Geo, Director
Patrick M. McAndless, B.Sc., P. Geo, Director
Des Balakrishnan, Corporate Secretary
Mr Balakrishnan has been the Corporate Secretary of the Company since
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.
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, [email protected]; John Boidman, [email protected]; Media: Valérie Lacasse, [email protected]; (514) 939-3989, (416) 644-2020; www.renmarkfinancial.com
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