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Electric Metals signs property option agreement to acquire lithium project
Electric Metals signs property option agreement to acquire lithium project
About this update from Barksdale Resources Corp.
[{"type":"text","content":"\n\n\n\nDec. 10, 2009 (Canada NewsWire Group) -- VANCOUVER, Dec. 9 /CNW Telbec/ -- ELECTRIC METALS INC. (TSX-V: EMI.A) (the \"Company\") announces that it has entered into a definitive property option agreement (the \"Agreement\") with Salta Water Co. (\"Salta\"), a private Cayman Island company, to acquire an undivided 60% interest in certain mineral claims situated in Salta Province, Argentina (the \"Salta Transaction\"). Salta is arm's length to the Company.The property consists of five cateos (exploration concessions) covering approximately 42,315 hectares in the Puna plateau, a high elevation basin-like plain on the eastern slope of the Andes Mountains of Argentina (the \"Property\"). A National Instrument 43-101 compliant geological report for the Property has been commissioned and is expected to be completed shortly.In order to exercise the option and acquire 60% ownership of the Property (subject to a 1.5% net returns royalty in favour of Salta), the Company must, over a three year period, pay a total of US$350,000, issue 1,000,000 common shares of the Company and spend a minimum of US$1,000,000 in exploration costs. The Company may purchase the remaining 40% interest in the Property for US$6,000,000 for two years following the option exercise provided that the Company pays Salta US$100,000 per year as advanced royalty payments. If the company chooses not to exercise its option to acquire the remaining 40% interest, it will be required to carry Salta through to commencement of commercial production.Change of BusinessOn August 31, 2009, the Company announced that it had signed a definitive Mineral Option Agreement with GeoXplor Corp., to acquire 100% of the SV Lithium Mineral Claims (seventy mineral claims located in Esmeralda County, Nevada, USA). The property comprises approximately 11,200 acres in the Big Sky Valley which is adjacent to the Clayton Valley, location of the only lithium brine operation in the United States, the Chematall-Foote Silver Peak operation.The completion of the Salta Transaction in addition to the acquisition of the SV Lithium Mineral Claims will be a \"change of business\" (the \"COB\") for the Company pursuant to Policy 5.2 of the TSX Venture Exchange (the \"Exchange\"), with a new focus on the resource industry. The Company was previously engaged in the fitness and recreational sports centres...