Pure Energy Signs Lease and Option Agreement with Nevada Alaska Mining Co. Inc.
June 4, 2015 (Source: Accesswire) — Pure Energy Minerals Limited (TSXV: PE) (the “Company”) announces that it has entered into an option and lease agreement (the “Agreement”) dated effective May 31, 2015 (the “Effective Date”) with Nevada Alaska Mining Co. Inc. (“NAM”) whereby NAM has granted the Company an indefinite, exclusive lease and exploration license (the “Lease”) to conduct mineral exploration and development testing on certain association unpatented placer mining claims comprised in a property located in Esmeralda County, Nevada (the “Property”). NAM has also granted the Company the option to acquire a 100% interest in the Property (the “Option”). The Option is subject only to a 3% NSR in favour of NAM (the “Royalty”). Under the terms of the Lease, the Company is required to make the following cash payments and common share issuances to NAM:
On the Effective Date:
- CDN$35,000 (the “Cash Payment Amount”); and
- 226,620 common shares of the Company, representing:
- 200,000 common shares, and
- an additional 26,620 common shares at a deemed price of $0.26 (being the last closing price of the Company’s common shares prior to the Effective Date), equal to the negative currency difference between the Canadian and US dollars (the “Currency Difference”) on the Cash Payment Amount on the Effective Date, being $6,921.38 based on an exchange rate of CDN$1.00=USD$0.8022;
- On the first, second, third and fourth anniversaries of the Effective Date, CDN$35,000 as well as such number of common shares of the Company as is then- equal to the Currency Difference on the Cash Payment Amount divided by the then-most recent closing price of the Company’s common shares; and
- US$75,000 on each anniversary of the Effective Date past the fourth anniversary date until the Option Payment (described below) is made and title to the Property is transferred to the Company or the Agreement is terminated.
Under the terms of the Option, the Company is entitled to acquire a 100% interest in the Property, subject to the Royalty, by providing NAM either:
- one-time payment of US$500,000 (the “Option Payment”); or
- such number of common shares of the Company as is equal to the Option Payment divided by the then-most recent closing price of the Company’s common shares.
The Company may terminate the Agreement at any time on 30 days written notice to NAM. The Agreement is subject to TSX Venture Exchange approval.
The Property consists of 54 association unpatented placer mining claims totaling 2,554 acres known as the CE and CD claims, contiguous to the south of the Company’s existing Clayton Valley Lithium Brine Project in Nevada. The Property claims overlie the north-south trending basin that is present beneath the southern half of the Clayton Valley. A recent seismic reflection survey completed by the Company included the Property, and initial results show that the mineralized zone intersected in the Company’s recent drilling campaign extends throughout the Company’s entire claim area, from adjacent to the existing Silver Peak lithium operations southwards to include the Property. With the addition of the Property the Company has expanded its opportunity in Nevada to over 8,000 acres.
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Gerhard Jacob, M.Sc., EurGeol., a Qualified Person under NI 43-101, has reviewed and approved the scientific and technical information in this press release.
About Pure Energy Minerals Limited
The Company is an integrated lithium mining and processing developer with a focus on green ‘cradle to cradle’ lifecycle solutions for lithium supply in North America. The Company is currently focused on the advancement of our prospective 8,000 acre Clayton Valley Lithium Brine Project, located contiguous and to the southeast of the only producing lithium mine in the United States, Rockwood Lithium’s Silver Peak lithium brine mine.
ON BEHALF OF THE BOARD
PURE ENERGY MINERALS LIMITED
Chief Executive Officer
We Seek Safe Harbour. 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.
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