Alset Executes Final Agreement on Lithium Salars in Mexico
THUNDER BAY, ONTARIO--(Marketwired - Jul 13, 2016) - Alset Energy Corp. (TSX VENTURE:ION) ("Alset" or "the Company") is pleased to announce that the Company has signed the final agreement to acquire the right to earn a 100% interest in the previously announced Mexican lithium, potassium and boron brine salar assets (see PR May 10, 2016) located in Zacatecas and San Luis Potosi, Mexico. After a review of all data and completion of a site visit by Alset and its advisors, the Company has decided to acquire four large concessions containing seven top priority salars which include, Caliguey, La Doncella, Colorada, La Salada, Santa Clara, Saldivar and Chapala. Although there are several other salars noted on these four concessions, very little work has been completed on them to date. The Company selected these salars due to their attractive lithium, potassium and boron values from limited shallow sampling down to a depth of five metres. Of particular interest is the La Salada salar where preliminary and unaudited analyses of samples from the southern half of the salar returned grades frequently exceeding 1500 mg/l with occasional values over 2000 mg/l lithium, 8% potassium and 60 mg/l boron. The depth and grade beneath 5 metres is unknown at this time but preliminary geophysical surveys indicate a possible depth of 70 metres.
Chemical and geophysical (resistivity) results were provided by the current concession owner. Alset has not verified all the data as most of the sample trenches are no longer open for duplicate sampling. However, the samples were analyzed and results reported by a certified laboratory. The results are considered relevant and suitable for disclosure because they reveal the presence of lithium in concentrations of potentially economic interest.
Alset will acquire these assets through its wholly owned Mexican subsidiary, Grupo Minero Alset, S.A. de C.V., by paying the outstanding mining taxes on the four concessions in the amount of approximately US$112,000 and making the following payments of US$210,000 to the Optionor on the following schedule:
- US$20,000 on the Company providing the Notice of satisfaction of the due diligence;
- US$25,000 on first anniversary of signing the Definitive Agreement;
- US$30,000 on second anniversary of signing the Definitive Agreement;
- US$35,000 on third anniversary of signing the Definitive Agreement;
- US$40,000 on fourth anniversary of signing the Definitive Agreement; and
- US$60,000 on fifth anniversary of signing the Definitive Agreement
The property will be subject to a 2.25% NSR in favour of the Optionor of which 1% can be purchased by the Company for US$250,000. Alset has agreed to pay a finders' fee to a third party of 10% based on the value of the option. The Company is planning an aggressive exploration program and permitting for drilling will commence immediately. Alset continues to compile the extensive database associated with the salars and will update the Company's web site on a timely basis.
Stephen Stares, Company President and CEO stated, "We are pleased to have completed administrative aspects surrounding this agreement and establishing Alset's corporate presence in Mexico. We now look forward to aggressively exploring the concessions with our team of talented advisors with the hopes of developing these properties into producing assets in the future."
All of the above transactions are subject to TSX.V and regulatory approvals.
Alset is well funded with approximately $900,000 in cash.
Clinton Barr (P.Geo.), V.P. Exploration for Alset Energy Corp., is the qualified person responsible for this release.
On behalf of the Board of Directors of Alset Energy Corp.,
Stephen Stares, President
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements."
Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to gold price and other commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections.