New Energy Metals Corp. Acquires Additional Cobalt Projects IN Chile
#2300 – 1177 West Hastings Street, Vancouver, BC, Canada, V6E 2K3
Phone: 604-484-1232 / Fax: 604-408-7499
NEW ENERGY METALS CORP. ACQUIRES
ADDITIONAL COBALT PROJECTS IN CHILE
NR18-08 April 11, 2018
Vancouver, B.C., April 11, 2018 – “New Energy Metals Corp.” (“New Energy Metals” or the
“Company”) (TSXV. ENRG) announces that it has entered into option agreements (the
“Agreements”) to acquire a 100% interest in three additional cobalt explor ation projects (the
“Projects”) located within Chile’s past- producing San Juan cobalt distri ct. The Projects are
located in a readily accessible region that is noted for the oc currence of high grade cobalt
mineralization.
New Energy Metal’s President and Chief Executive Officer, Grant Ewing, said “These Projects
add to the two cobalt acquisitions announced earlier, and provide the Company with a strong land
position in the prospective San Juan cobalt district in Chile. We view the potential for the
discovery of primary cobalt deposits on the Projects as very good based on historical records and
the fact that only limited exploration has been conducted in the region in more than 60 years.”
Cobalt Project Highlights
In November 2017, Chile’s Corporation for the Promotion of Prod uction (“CORFO”) and the
Chilean National Service of Geo logy and Mining (SERNAGEOMIN) pu blished a report that
reviewed the cobalt mineral resources in Chile. Meaningful pri mary cobalt production has
historically been developed in two districts in Chile, one of which is the San Juan cobalt district in
the Atacama Region.
The Company reviewed available regional and district-scale datasets in the San Juan cobalt district
and selected the Projects based on geological characteristics, abundance of historic workings,
evidence of mineralization, and proximity to past production. The Company’s initial exploration
focus on the Projects will center on compilation of historical data, regional mapping and
prospecting, and sampling to identify priority areas for follow up work.
Evidence of historic workings exist on the Projects, which occu r on the same trend and in close
proximity to the past producing Cobaltera mine. Access is via secondary roads approximately
25km south of the port of Huasco, Chile. Infrastructure is goo d and the district is approximately
10km from tidewater.
NR18-08 Continued 2 April 11, 2018
About San Juan Cobalt District
The San Juan cobalt district incl udes several historical produc ing mines, which produced cobalt
(and copper) for several decades at the turn of the 20 th century. The past-producing Cobaltera
Mine was the last to close in the mid-1940’s at the end of the Second World War. At the peak of
production there were three processing plants in the area and several small-scale operations.
Cobalt production and smelting in the district started in 1885 but no statistics are available prior
to 1903. From 1903 to 1944 the district produced approximately 300,000 tonnes of cobalt ore
grading up to 4% cobalt (plus copper) (“El Cobalto en Chile, Ca ja Credito Minero”, H.
Hornkohl,1944).
The known San Juan cobalt district measures approximately 4km by 10km. Numerous small-scale
mines, historical shafts and adit s exist in the region, indicat ing the existence of an extensive
network of mineralized structures and past high-grade mining activity. Numerous ruins and slags
from the past producing cobalt-copper smelters also exist in the district.
Mineralization in the district o ccurs in high-grade veins and m antos, with average cobalt grades
reportedly up to 1.6% cobalt for primary mineralization, and up to 6.4% cobalt in the enriched
secondary oxidized zones. Vein thickness varies greatly from 0.5m to 20m. Shafts over 100m in
depth exist on some of the vein structures. The cobalt mineral ization is associated with copper
mineralization and is noted to be structurally controlled and c losely associated with the large
regional northeast trending Atacama fault system. In the oxidiz ed zone (up to 40m thick) cobalt
occurs as erythrite, a cobalt arsenate. In the deeper primary z one the mineral Cobaltite, a cobalt
sulfo-arsenide mineral, is the main cobalt mineral.
Option Agreement Details
Under the terms of the Agreements, the Company can earn a 100% interest in the Projects through
the following cash and share payments:
Onix Uno Cobalt Project
Date US$ Cash Shares
On signing: US$300,000 250,000 shares.
6 months: US$300,000 250,000 shares.
12 months: US$400,000 300,000 shares.
24 months: US$400,000 300,000 shares.
TOTAL: US$1.4M 1.1M shares
Codiciada Cobalt Project
Date US$ Cash Shares
On signing US$ 100,000 150,000 shares
6 months: US$ 100,000 150,000 shares
TOTAL: US$ 200,000 300,000 shares
NR18-08 Continued 3 April 11, 2018
Consuelo 1-5 and Amelia 1/2 Cobalt Projects
Date US$ Cash Shares
On signing: US$200,000 200,000 shares
6 months: US$200,000 200,000 shares
12 months: US$300,000 300,000 shares
24 months: US$300,000 300,000 shares
TOTAL: US$1M 1M shares
Upon completion of the option payments, the Company will be dee med to have exercised the
options and will have earned an undivided 100% legal and beneficial interest in and to the Projects.
The Projects are not subject to underlying royalties. During t he option period, the Company will
be responsible for maintaining the concessions comprising the Project in good standing. There are
no work commitments and all work carried out on the Projects will be at the sole discretion of the
Company. Initially, the Company will focus on data review, and mapping and sampling to identify
priority targets for follow-up.
The Company has established a wholly owned Chilean subsidiary, New Energy Metals SpA, which
has entered into the Agreements with the property venders in accordance with Chilean law.
The Agreements are subject to the approval of the TSX Venture Exchange.
Engagement of Investor Relations Consultant
The Company has engaged Future Money Trends, LLC to provide financial publishing and digital
marketing services to raise public awareness of the Company and promote its business. A payment
of $250,000 is due on signing of the one-year agreement.
Stock Options
The Company announces that its boa rd of directors has granted a n aggregate of 1,000,000 stock
options to officers and consultants of the Company at an exerci se price of $0.69 per share for a
period of five years. Such options have been granted pursuant to the Company’s 10% rolling stock
option plan and are in accordance with policies within the Exchange.
About The Company
The Company completed an IPO in January 2018 and closed a $4.37 million-dollar financing in
February 2018. The Company’s principal project is the Cristal copper project located in northern
Chile, which the Company has an option to acquire a 100% interest in. The Company is also active
in compiling prospective cobalt projects in northern Chile and is pursuing other attractive
opportunities in strategic commodities, with a focus on opportu nities in Chile. The Company’s
name change to “New Energy Metals Corp.” more accurately reflects the new corporate strategy.
NR18-08 Continued 4 April 11, 2018
Qualified Person
Mr. Grant Ewing, P.Geo., is a qualified person as defined by Na tional Instrument 43-101. Mr.
Ewing and has reviewed the scientific and technical information that forms the basis of this news
release and has approved the disclosure herein. Mr. Ewing is not independent of the Company.
On behalf of New Energy Metals Corp.
Grant Ewing, President & CEO
T: 604.484.1232
W: www.newenergymetals.ca
Neither the TSX Venture Exchange nor its Regulation Services Pr ovider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Note Regarding Forward-Looking Statements
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information
contained herein. This News Release includes certain “forward- looking statements”. Other than statements of
historical fact, all statements included in this release, including, without limitation, statements regarding future plans
and objectives of New Energy Metal s Corp., are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future
events could differ materially from those anticipated in such s tatements. Important factors that could cause actual
results to differ materially from New Energy Metal’s expectations are the risks detailed herein and from time to time
in the filings made by New Energy Metals Corp. with securities regulators. Those filings can be found on the Internet
at http://www.sedar.com.