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Wealth Minerals looks to acquire additional exploration concessions in Chile salt region

1st August 2016

By: Samantha Herbst

Creamer Media Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – Multi-listed mineral resources company Wealth Minerals has entered into an option agreement to acquire a 100% royalty-free interest in the Quisco 1 to 9 exploration concessions, located in the Quisquiro Salar salt region in Antofagasta, northern Chile.

The company also announced on Friday that it had entered into a formal option agreement, giving it the right to acquire the Salar 1 and Salar 2 mining concessions within the Aguas Calientes Norte Salar.

The concessions span about 2 400 ha located in the southern portion of the Salar de Quisquiro, in Antofagasta’s Region II. The northern portion of the Salar de Quisquiro is held by Sociedad Quimica y Minera (SQM), one of two lithium-producing companies in Chile.

The Quisco 1 to 9 exploration concessions, together with the Puritama 1 to 8 and Salar 1 and 2 concessions, located in the Salar de Aguas Calientes, and the Pujsa 1 to 7 concessions, located in the Salar de Pujsa, comprise Wealth Minerals’ Trinity Lithium project, a consolidation of three high-priority Chilean salars.

“The consolidation of three high-potential, highway-accessible lithium projects has been in the works for some time and its completion helps to position Wealth as a notable lithium company in Chile,” stated Wealth Minerals CEO Henk van Alphen.

“We have essentially secured 100% of the Aguas Calientes Norte and Pujsa Salara, while our ownership at Quisquiro Salar, together with our neighbour SQM, completes the planned project consolidation in this region of Chile. Our relentless work to acquire and consolidate high-potential lithium interests in Chile is generating concrete results.”

Van Alphen added the Wealth Chile executive director Marcelo Awad A, who is also the former president and CEO of Antofagasta Minerals, will continue to lead Wealth’s ongoing Chilean lithium salar acquisition drive.

Under a letter of intent, signed to enable Wealth Minerals to enter into the option agreement, Wealth would be granted the exclusive option to acquire a 100% royalty-free interest in the project from the arm’s-length vendor, a private Chilean company.

This is subject to the completion of certain conditions precedent, including acceptance from the TSX Venture exchange.

Subject to satisfactory due diligence by Wealth Minerals, which is to be completed within 45 days, Wealth’s Chilean subsidiary and the vendor will execute a formal option agreement. There will be no work commitments under the option agreement, though Wealth Chile is responsible for maintaining the concessions in good standing during the term of the option.

Wealth Minerals noted that the nonproducing salars in Chile have had limited exploration work completed, while most of them are yet to be systematically explored. It added that exploration will be required so that any potential resources can be identified and fully evaluated and quantified.

Accordingly, the initial programme to be carried out by Wealth Minerals at the Quisco 1 to 9 exploration concessions will consist of a programme of prospecting and sampling to determine the existence, nature, extent and distribution of lithium at the property.

With interests in Canada, Mexico, Peru and Chile, Wealth Minerals’ main focus is the acquisition of lithium projects in South America. The company has positioned itself to develop the Aguas Caliente Norte, Pujsa and Quisquiro salt areas in Chile and continues to aggressively pursue new acquisitions in the region.

Lithium market dynamics and a rapidly increasing metal price are the result of profound structural issues with the industry meeting anticipated future demand. Wealth Minerals 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.

Edited by Creamer Media Reporter

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