VANCOUVER, British Columbia, May 17, 2016 /PRNewswire/ --
Nevada Energy Metals Inc., TSX-V: BFF (OTC: SSMLF) (Frankfurt: A2AFBV) is pleased to announce that it has agreed to grant 1074654 Nevada Ltd an Option to acquire a seventy (70%) percent interest in the BFF-1 Clayton Valley Property by making certain Cash Payments, issuing Shares upon completion of a "Going Public Transaction", and completing Exploration Expenditures on its property at Silver Peak, Clayton Valley, Nevada.
Cash Payments: US$300,000 to the Optionor as follows: (i) US$100,000 on the Closing Date; (ii) US$100,000 on or before the one (1) year anniversary of the Closing Date; and (iii) US$100,000 on or before the two (2) year anniversary of the Closing Date.
Expenditures: US$1,000,000 on the exploration and development of the Property as follows: (i) US$100,000 on or before the one (1) year anniversary of the Closing Date; (ii) US$300,000 on or before the two (2) year anniversary of the Closing Date; and (iii) US$600,000 on or before the three (3) year anniversary of the Closing Date.
Share Payments: Following completion of a Going Public Transaction, the issuance of 1,200,000 common shares of the Resulting Issuer to the Optionor (the "Consideration Shares") as follows: (i) 400,000 common shares on the Closing Date; (ii) 400,000 common shares on or before the one (1) year anniversary of the Closing Date; and (iii) 400,000 common shares on or before the two (2) year anniversary of the Closing Date. All Consideration Shares will be subject to a four-month statutory hold period.
Following exercise of the Option, the Optionee shall have a seventy (70%) interest in and to the Property, with the Optionor retaining the balance. Thereafter, the parties will work diligently and in good faith to negotiate the terms of a joint venture to advance development of the Property. The joint venture will provide that expenditures on the Property will be funded on a pro rata basis, based upon the respective parties proportionate interest in the Property. In the event any one party declines to fund the expenditures in proportion to their interest, their respective interest in the joint venture shall be reduced accordingly, provided that no party shall be diluted below a fifteen (15%) interest in the Property.
Closing of the transaction, and the grant of the Option, will occur on the date which is five (5) business days following completion of a Going Public Transaction (the "Closing Date"). The Closing Date must occur within sixty (60) days of the execution of this term sheet, unless otherwise agreed by the parties, provided that if the Closing Date does not occur within thirty (30) days of the execution of this term sheet, the Optionee shall make a payment of US$25,000 to the Optionor (the "Deposit Payment"). The Deposit Payment shall be credited against the Cash Payments owing pursuant to the Option, and shall not be refundable by the Optionor in the event closing does not occur for whatever reason. The parties agree to work diligently and in good faith to negotiate the terms of a definitive agreement to reflect the transaction described herein (the "Definitive Agreement"), and will use their best efforts to execute the Definitive Agreement on or before May 31, 2016.
Rick Wilson, Chief Executive Officer of Nevada Energy Metals, commented: "We are excited about having a partner with which to advance our Clayton Valley property. This agreement is a first step in fulfilling our promise as an asset builder and project generator. The BFF-1 Project covers an area similar to the structural and geologic settings at Albemarle's Silver Peak lithium-brine operation and lies only two hundred meters to the north west side of their property. We look forward to an exciting exploration program being carried out in the months ahead."
About the Clayton Valley BFF-1 Project:
The Clayton Valley BFF-1 Project is an early-stage lithium brine prospect in Esmeralda County, Nevada. A total of 77 placer claims cover an area about 623 ha (1,540 acres) on the north-western side of the original Clayton Valley playa. The property position covers an inferred graben bounded by the Silver Peak Range front on the west and an outlier of Paleozoic rocks known as Goat Island on the east. The exploration concept is the graben is a sub-basin of the larger Clayton Valley basin and may represent a secondary trap for lithium brines within the greater system.
The Clayton Valley BFF-1 NI 43-101 Technical Report by Alan Morris, CPG, QP, states "The property has strong potential to host Lithium brine deposits in favorable geologic horizons within the basin fill. Another possible target is lithium enriched clay within the fill package and potentially in previous high stands of the playa." (April, 2016)
Geologic and geophysical mapping conducted for geothermal exploration and documented by Hulen (2008) indicates previously unrecognized, deep graben lying between the Silver Peak range front and outcrops of Paleozoic rocks at Goat Island and Alcatraz Island. This area was their target zone for a deep circulating geothermal system they hoped to exploit for geothermal power. This graben is the main target for lithium brine as it may represent a separate sub-basin in Clayton Valley that holds brines not subject to pumping by production wells on the east side of the main valley. Exposed mineralization is confined to salt crust on the playa surface and other locations in the valley.
Western Geothermal Partners drilled a 120 meter (400 foot) geothermal gradient test well in 2006 on what is now the Clayton Valley BFF-1 project. Bottom hole temperature was 50°C (122°F) which showed moderate potential for geothermal power. Of significance, the well encountered a 25-foot-thick zone of volcanic ash reportedly similar to the Main Ash Aquifer in the Clayton Valley lithium operation. The presence of any felsic ash in this hole is significant in light of that it is the presumed source for at least some of the lithium in the brines (Price et al, 2000).
Qualified Person: The technical content of this news release has been reviewed and approved by Alan Morris CPG, Elko, Nevada
About Nevada Energy Metals: http://nevadaenergymetals.com/
Nevada Energy Metals Inc. is a well-funded Canadian based exploration company whose primary listing is on the TSX Venture Exchange. The Company's main exploration focus is directed at lithium brine targets located in the mining friendly state of Nevada. The Company has 100% ownership in 87 claims in Clayton Valley, only 250m from Rockwood Lithium, the only brine based lithium producer in North America. Nevada Energy Metals has also acquired, 100 claims (Teels Marsh West) covering 2000 acres (809 hectares) at Teels Marsh, Mineral County, Nevada, a highly prospective lithium exploration project, 100% owned without any royalties, located on the western part of a large evaporation lake where a phase one, 27 hole shallow auger exploration program has been completed and results are pending. Recently, the Company announced the addition of the San Emidio Desert lithium project, consisting of 155 claims (approximately 3,100 acres/1255 hectares) in Washoe County, Nevada. The Company's first lithium project, Alkali Lake, in Esmeralda county, is a 60% earn in option agreement from Dajin Resources Corp, where near surface lithium has been confirmed. The Company's most recent acquisition is 128 placer claims (2,560 acres/ 1,036 hectares) located in southwest Black Rock Desert, Washoe County, Nevada.
On Behalf of the Board of Directors
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Nevada Energy Metals
450-789 West Pender St Vancouver, BC
SOURCE Nevada Energy Metals Inc.