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Eureka enters into letter agreement for joint venture on Gemini Lithium Project in Nevada
Eureka enters into letter agreement for joint venture on Gemini Lithium Project in Nevada ...
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[{"type":"text","content":"\n\n\n\nEureka enters into letter agreement for joint venture on Gemini Lithium Project in Nevada\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nEureka enters into letter agreement for joint venture on Gemini Lithium Project in Nevada\nCanada NewsWire\nVANCOUVER, Jan. 21 2016\n\n\n\n\n\n\nVANCOUVER, Jan. 21 2016 /CNW/ - Eureka Resources Inc. (\"Eureka\" or the \"Company\") (TSXV: EUK) announced today that it has entered into a letter agreement dated January 20, 2016 (the \"Agreement\") to acquire from Nevada Sunrise Gold Corporation (\"Nevada Sunrise\", TSXV: NEV) a 50% working interest in a lithium exploration property proximal to the Clayton Valley in Nevada (the \"Transaction\"). The Clayton Valley hosts the Silver Peak mine, which is the only current lithium producer in North America. \n\n\"We have made this strategic move in order to diversify the Company's property portfolio in the face of a challenging gold market. Lithium is a commodity unlike most others in that its price has increased in the past year,\" said Michael Sweatman, CEO of Eureka. \"Nevada Sunrise has secured a significant land position in the Nevada lithium play and this opportunity allows for an efficient way for Eureka to diversify our holdings.\" \n\nPursuant to the terms of the Agreement, Eureka will have the right to acquire a 50% participating interest in the Gemini Lithium Project (\"Gemini\"), located in the western Lida Valley, by reimbursing Nevada Sunrise for 50% of Gemini's acquisition costs, which are estimated at approximately US$85,000. These costs include staking costs, data acquisition and processing, and claims registration fees payable to Esmeralda County and the Bureau of Land Management (\"BLM\"). In addition, Eureka will issue Nevada Sunrise 500,000 of its common shares as a prospect fee, with 300,000 shares to be issued on receipt of approval for the Transaction from the TSX Venture Exchange (the \"TSXV\") and 200,000 to be issued on the first anniversary of such approval. Eureka and Nevada Sunrise will also enter into a joint venture wit...