Millennial Enters Into Property Option Agreement to Joint Venture Up to 80% Pocitos West Project
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 23, 2017) - Millennial Lithium Corp. (TSX VENTURE:ML)(FRANKFURT:A3N2)(OTCQB:MLNLF) ("Millennial" or the "Company") is pleased to announce that it has entered into a Mineral Property Option Agreement dated May 19, 2017 (the "Option Agreement") with Liberty One Lithium Corp. (TSX VENTURE:LBY )("Liberty") to joint venture up to an 80% interest in the Pocitos West Project (the "Property") consisting of 15,857 hectares (39,183 acres) of prospective lithium brine exploitation concessions on the Pocitos Salar in Salta Province, Argentina (the "Transaction").
As consideration for grant of the option and pursuant to the terms of the Option Agreement, Liberty will pay Millennial aggregate cash consideration of US$5,500,000 and incur an aggregate of $1,000,000 of staged expenditures to earn a 70% interest in the Property as follows:
Date | Cash Consideration | Work Obligation | ||
On execution of Option Agreement | US$17,500 | Nil | ||
On the Closing Date | US$582,500 | Nil | ||
On or before 13 months from Closing Date | US$600,000 | Nil | ||
On or before 18 months from Closing Date | US$600,000 | Nil | ||
On or before 24 months from Closing Date | US$600,000 | $500,000 | ||
On or before 30 months from Closing Date | US$600,000 | Nil | ||
On or before 36 months from Closing Date | US$2,500,000 | $500,000 | ||
Liberty has the option to earn a further 10% interest in the Property if it completes a bankable commercial feasibility study on the Property within 42 months of the closing of the Transaction.