GlobeNewswire•October 15, 2019
VANCOUVER, British Columbia, Oct. 15, 2019 (GLOBE NEWSWIRE) — Wealth Minerals Ltd. (the “Company” or “Wealth”) – (TSXV: WML; OTCQX: WMLLF; SSE: WMLCL; Frankfurt: EJZN), is pleased to announce it has signed a strategic memorandum of understanding (the “MOU”) with Uranium One Group (“U1G”). The MOU provides for the acquisition (the “Proposed Transaction”) by U1G of up to a 51% ownership interest in the Company’s Atacama lithium project (the “Atacama Project”), an approximately 46,200 hectare licensed position located in the Atacama Salar in Region II of Antofagasta, northern Chile (see news release dated November 23, 2016) on commercial terms to be agreed upon by the parties. The MOU provides for a due diligence period during which U1G can conduct technical, geological, legal, tax, financial and other due diligence on the Atacama Project, at U1G’s expense. The MOU gives U1G the right to match the terms of any proposed alternative transaction.
The closing of the Proposed Transaction would be subject to customary closing conditions and approvals, including the ability of the parties to enter into a definitive purchase and sale agreement, U1G being satisfied with the results of its due diligence, and the receipt of all required regulatory and corporate approvals, including, of the TSX Venture Exchange (“TSXV”) in respect of the Proposed Transaction. The MOU provides that the parties will enter into an off-take agreement, upon mutually agreed terms and conditions, whereby U1G would have the right to purchase 100% of the products produced from the Atacama Project, provided the Proposed Transaction closes.
The MOU provides for increased co-operation between the parties for the development of the lithium projects. Such development is expected to include, among other things, the application of U1G’s ecologically friendly sorption lithium extraction technology.
Tim McCutcheon, President of Wealth, commented, “The lithium industry’s future growth is about the profound changes happening in the way the world uses energy. Wealth’s team has invested significant time in studying and evaluating the best methodologies for developing its lithium assets, with a view to avoid using solar evaporation. Partnering with U1G will help Wealth accelerate the development of lithium projects by using modern technology and moving away from outdated solar evaporation to a more efficient and environmentally friendly sorption technology.”
Lithium production operations that utilize salars (underground brine reservoirs) typically use solar evaporation as the major part of the lithium recovery process. While this process has a low operating expense and is technologically simple, it also requires significant land for ponds in which lithium brine, after subsurface pumping, is placed for drying. Additionally, water in the brine is evaporated into the atmosphere, lost from the locality forever. In extremely dry areas like the high Andes Mountains, where most lithium brine operations are located, solar evaporation is seen as having long term sustainability issues. There are several new technologies for recovering lithium from brine, however, most of these technologies have negative points in their methodology which have stalled their commercial implementation.
U1G provides a lithium extraction technology for processing lithium-bearing brine material which uses a reusable catalyst material to attract lithium out of brine, thus eliminating the need for solar evaporation. Using this sorption technology greatly reduces the physical footprint typically needed in a solar evaporation operation, specifically large, multi-phase, lined evaporation ponds. Its technology also enhances the quality of lithium extraction and recovery levels as compared to traditional solar evaporation. Lastly, after lithium recovery, the brine can then be pumped back into the salar, helping to ensure long-term operational and environmental viability.
U1G is a global energy company and one of the world’s largest uranium producers, with a diverse portfolio of assets worldwide, including in Kazakhstan, the United States, Tanzania and elsewhere. U1G is committed to the highest environmental standards, the health and safety of its employees and the long-term sustainability of the diverse communities across the globe in which it operates. See: http://www.uranium1.com/.
About Wealth Minerals
Wealth is a mineral resource company with interests in Canada, Mexico, Peru and Chile. The Company’s main focus is the acquisition and development of lithium projects in South America.
Lithium market dynamics and a rapidly increasing metal price are the result of profound structural issues with the industry meeting anticipated future demand. Wealth is positioning itself to be a major beneficiary of this future mismatch of supply and demand. The Company also maintains and continues to evaluate a portfolio of precious and base metal exploration-stage projects.
For further details on the Company readers are referred to the Company’s website (www.wealthminerals.com) and its Canadian regulatory filings on SEDAR at www.sedar.com.
On May 12, 2018 and ending May 12, 2020 Liviakis Financial Communications, Inc. (LFC) was retained by Wealth Minerals LTD in various consulting capacities including strategic management planning, investor relations and other business development responsibilities. LFC is compensated $16K per month. Officers and employees of LFC will buy or sell shares in Wealth Minerals LTD prior, during or after this release. LFC advises Wealth Minerals LTD but does not provide investment advice. LFC is not a registered investment advisor or broker-dealer. All material provided regarding Wealth Minerals LTD including, but not limited to its history, corporate status, and other developments was prepared using information approved and signed off by Wealth Minerals LTD management as approved for public dissemination. Although the information contained herein is believed to be reliable, LFC makes no warranties as to the accuracy of the description of any of the content herein and accepts no liability for how readers may choose to utilize it.