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.
Proposed Transaction:
- 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.
Qualified Person:
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.
About Pure
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