VANCOUVER, Nov. 19, 2013 /CNW/ - Pure Energy Minerals Limited ("Pure" or the "Company") (TSXV: PE) is pleased to announce that is has executed a Memorandum of Understanding (the "MOU") with privately owned GeoXplor Corp. ("GeoXplor") setting the key terms for the definitive agreement whereby the Company has the right to acquire a 100% interest in 71 placer mining claims known as the CV and DB claims (the "Property") located in Clayton Valley, Esmeralda County Nevada.
- Pure agrees to pay GeoXplor a CDN $40,000 non-refundable deposit for the exclusive right, expiring Feb 25, 2014 to conduct a due diligence review on the property and to negotiate the final terms and conditions in a formal agreement (the "Definitive Agreement") which is to be executed no later than February 25th, 2014 (the "Effective Date").
- Pure will pay to GeoXplor the sum of CDN $100,000 on the date of execution of the Definitive Agreement and $250.000 on the succeeding first, second, third and fourth anniversary of the Effective Date.
- On the Effective Date, Pure will issue to GeoXplor 1,000,000 common shares of Pure, on each of the first, second, third and fourth anniversary dates Pure will issue GeoXplor 1,462,500 common shares of Pure
- Pure will incur exploration expenditures of US$$750,000 on or before the first anniversary of the Effective Date, an additional US$1,000,000 on or before the second anniversary of the Effective Date, an additional US$2,000,000 on or before the third anniversary of the Effective Date, on or before the fourth anniversary of the Effective Date, Pure shall either have prepared and delivered to GeoXplor a "pre-feasibility study" (as the term is defined in National Instrument 43-101 Standards of Disclosure for Minerals Projects adopted by the Canadian Securities Administrators ("NI-43101")) in respect to the property of have commenced commercial production on the Property.
- If at any time Pure, its assignee or its third party joint venturer delivers a positive feasibility study (as that term is defined in NI 43-101) or a production permit is issued in respect of all or a portion of the Property, Pure will pay to GeoXplor and additional US $2,000,000 in cash or shares of Pure at the election of GeoXplor.
- On or before the fifth anniversary Pure shall pay a US $250,000 advance royalty and on each subsequent anniversary of the Effective Date. All such advance royalty payments paid by Pure will be credited towards the Royalty due to GeoXplor.
- Upon satisfaction of the requirements of this MOU, Pure have acquired a 100% interest in the property subject to a 5% royalty.
The above proposed transaction is subject to the completion of the Definitive Agreement by the parties and receipt of all required regulatory approvals to the transaction.
In 2010 previous exploration drilling confirmed extended lithium enriched brines at depth on the Property. Two reverse circulation drill holes, 2.3KM spaced, intersected the anticipated target horizon at 145 m depth up to 317 m drilled depth with respect to lithium values larger than 100 mg/L in 2010. Their sample results showed values of lithium ("Li") ranging from 100 mg/L to 400 mg/L with Li values of 370 mg/L over 30m , and Li values averaging of 285 mg/L over 145m of intersection. The mineralized zone is immediately south of the current lithium producing property in Silver Peak, NV. (source: http://rodinialithium.com/news/index.php?&content_id=130 and http://rodinialithium.com/news/index.php?&content_id=99).
A deeper situated second horizon is expected below the above mentioned zone, however it has not been drill tested yet.
On neighboring properties to the West and North West, controlled by Rockwood Lithium Corporation lithium is economically produced from deep seated lithium brines, assumingly the same horizon, since 1966 with average grades ranging from 100 - 300 mg/L.
With the addition of the CV and DB claims Pure has expanded its opportunity in Nevada to over 7,000 acres. In 2012 a geophysical survey by Pure on their Alkali Flats ("AF") claims indicated similar drill targets. Pure Energy plans to drill test all the potential zones in their upcoming drill program slated for next year.
This release has been reviewed and approved by Gerhard Jacob, M.Sc., EurGeol., Pure Energy Minerals Limited, Consulting Geologist - a Qualified Person as defined by National Instrument 43-101.
Pure Energy Minerals Limited (TSX-V.PE) is an innovative hybrid lithium exploration and processing technology company based in Vancouver, British Columbia. PURE is fully engaged in the acquisition, exploration and development of innovative mineral processing technologies to test and develop in conjunction with prospective lithium mineral properties.
Neither 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.
We Seek Safe Harbour
On behalf of the Board of Directors
Robert Mintak, CEO
SOURCE: Pure Energy Minerals Limited
For further information: