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New Energy Metals Acquires Lithium Project in Chile
Vancouver, British Columbia--(Newsfile Corp. - May 30, 2018) - New Energy Metals Corp. (TSXV:...
About this update from New Energy Metals Corp.
[{"type":"text","content":"New Energy Metals Acquires Lithium Project in ChileVancouver, British Columbia--(Newsfile Corp. - May 30, 2018) - New Energy Metals Corp. (TSXV: ENRG) (\"New Energy Metals\" or the \"Company\") announces that it has entered into an option agreement (the \"Lithium Agreement\") to acquire a 100% interest in a lithium project (the \"Atacama Lithium Project\") located in the Atacama salar district in northern Chile. New Energy Metal's President and Chief Executive Officer, Grant Ewing, said \"We are excited with the opportunity to acquire a project in a region recognized as having the world's highest grade and largest producing lithium brine salt flat. This opportunity is viewed as a strategic acquisition by the Company as it believes that potential value creation opportunities could arise in the future as a result of the transaction.\"Atacama Lithium Project HighlightsThe Atacama Lithium Project is located in the Salar de Atacama district, recognized as one of the highest grade and largest producing lithium brine regions. The Atacama Salar hosts a significant portion of the world's known lithium reserves and produces approximately one third of global lithium output from two production facilities operated by Sociedad Quimica y Minera (\"SQM\") and Rockwood Lithium (Albemarle). The favourable characteristics of the salar, including: high grade lithium and potassium, high evaporation rate, and low rainfall make Atacama's lithium production highly efficient versus other producing regions (source: U.S. Geological Survey).Current production occurs in the southern portion of the Salar. The Company's Atacama Lithium Project concessions cover an area of approximately 66,000 hectares and are located in the southeastern part of the district (see Figure 1). The proximity of the Atacama Lithium Project to existing production indicates the exploration potential for the discovery of brines in the eastern and southern areas of the district, underlying portions of the Company's Atacama Lithium Project. Summary of Lithium AgreementUnder the terms of the Lithium Agreement, the Company can earn a 100% interest in the Atacama Lithium Project through the following cash and share payments:Atacama Lithium ProjectDateAmount (US$)SharesOn SigningUS$550,000550,000 sharesJanuary 2019US$1,600,0001.6M sharesJanuary 2020US$2,000,0002M sharesJanuary 2021US$2,200,...