Vancouver, Canada: Radius Gold Inc. (TSX-V: RDU) is pleased to announce that it has applied for mineral concessions totalling 37,000ha covering four lithium brine targets in northern Mexico. Further Radius is pleased to announce it has signed an option agreement with Advantage Lithium Corp. (TSXV: AAL) to fund exploration of the properties.
While working in northern Mexico, Radius' exploration team recognized the potential of the large salar basins and compiled a database from historic lithium exploration conducted by the Mexican geological survey between 1987 and 1993. Radius applied for concessions covering the targets and has attracted an experienced and well-funded partner in Advantage Lithium.
Simon Ridgway, President and CEO of Radius, comments: "We are extremely pleased with these lithium brine projects and our new partner, Advantage Lithium. Our team has discovered a new region with lithium rich salars where we have the potential for a large discovery. We have a technically capable partner in Advantage Lithium willing to fund the projects and through share ownership in Advantage Lithium, exposure to excellent targets in Clayton Valley and the developing Lithium market. We look forward to advancing our new properties with the Advantage team."
- The four projects covering 37,000 hectares are located in the states of Chihuahua (La Union, La Union 2 and Santa Maria) and Coahuila (La Viesca).
- All projects are located in large, salar closed basins, in geological settings analogous to the Clayton Valley Basin, Nevada, host of Albemarle's Silver Peak lithium producing mine operation.
- Historic work in the area by the Mexican Geologic Survey included a 1982 drill hole at La Union which returned a brine sample of 283 ppm Li.
- Radius conducted controlled surface samples which resulted in numerous anomalous lithium results including 189ppm Li at La Viesca.
- Region is underexplored.
- Mexico is considered a mining friendly jurisdiction. The area has excellent infrastructure and is road accessible, allowing for potentially low exploration costs.
Key geographical highlights similar to Clayton Valley and/or associated with brine deposits:
- Located in a desert climate with historic evaporate ponds.
- Large closed basin salar targets.
- Geothermal hotsprings observed at La Union and Viesca salars.
- Suitable lithium source-rocks.
- Subsurface highly saline aquifers described in historic data.
|State||Project||Approx. Property Size (ha)|
|La Union 2||7,000|
Pursuant to the option agreement, Advantage Lithium is required to pay to Radius $25,000 on signing of the agreement and, upon TSXV acceptance, an additional $50,000 and 250,000 shares of Advantage.
Advantage Lithium has an option (the "First Option") to earn a 55% interest in the Projects by issuing 750,000 shares and spending $1,500,000 in exploration expenditures over a three-year period.
Upon exercise of the First Option to earn a 55% interest, Advantage may elect to either: (a) form a 55:45 joint venture with Radius on industry standard terms, for further exploration and development of the Projects; or (b) receive an option (the "Second Option") to acquire a further 15% interest in one or more of the Projects. In order to exercise the Second Option and increase its interest to 70%, Advantage must complete a NI 43-101 compliant preliminary feasibility study within 24 months of the election date. Upon exercise of the Second Option, Advantage and Radius will form a 70:30, industry standard joint venture.
Advantage has the right for a period of 60 days after the exercise of the Second Option on any Project, to purchase Radius' 30% interest in the Project at a price based on an independent valuation. Advantage will be the operator of the Projects during the option periods.
The technical information in this news release has been prepared in accordance with National Instrument 43-101 and reviewed on behalf of the Company by Bruce Smith, Chartered Professional MAusIMM Geologist, Qualified Person and Technical Advisor to the Company.
About Advantage Lithium
Advantage Lithium is a resource company specializing in the strategic acquisition, exploration and development of lithium properties and is led by President and Director, David Sidoo. Advantage Lithium has several lithium brine projects in Nevada and is planning to drill at its Clayton Valley NE project, immediately adjacent to Albemarle's Lithium production facility.
Radius has been exploring for gold in Latin America for over a decade. The Company has a strong treasury and is looking for investment and project acquisition opportunities across the globe. Please call toll free 1-888-627-9378 or visit our web site (www.radiusgold.com) for more information.
ON BEHALF OF THE BOARD
President and CEO
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking statements may include, without limitation, statements about the potential acquisition by Advantage Lithium of an interest in the Company's lithium properties; the planned exploration of the lithium projects; the Company's plans for its investments and properties; the Company's business strategy, plans and outlook; the merit of the Company's investments and properties; timelines; the future financial performance of the Company; expenditures; approvals and other matters. Often, but not always, these forward looking statements can be identified by the use of words such as "estimate", "estimates", "estimated", "potential", "open", "future", "assumed", "projected", "used", "detailed", "has been", "gain", "upgraded", "offset", "limited", "contained", "reflecting", "containing", "remaining", "to be", "periodically", or statements that events, "could" or "should" occur or be achieved and similar expressions, including negative variations.
Forward-looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among others, the potential acquisition by Advantage Lithium of an interest in the Company's lithium properties; the planned exploration of the lithium projects; changes in general economic conditions and financial markets; the Company or any joint venture partner not having the financial ability to meet its exploration and development goals; risks associated with the results of exploration and development activities, estimation of mineral resources and the geology, grade and continuity of mineral deposits; unanticipated costs and expenses; and such other risks detailed from time to time in the Company's quarterly and annual filings with securities regulators and available under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to: that Advantage Lithium may acquire an interest in the Company's lithium properties; the lithium projects will be explored as expected; that the Company's activities will be in accordance with its public statements and stated goals; that all required approvals will be obtained; that there will be no material adverse change affecting the Company or its investments or properties; and such other assumptions as set out herein. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.