Lithium Chile Signs Letter of Intent with Monumental Minerals to JV up to 75% of the Drill Ready Salar de Laguna Blanca, Chile Cesium SALT-Lithium Brine Project from Lithium Chile Inc. Near Surface Sediment Samples Assaying up to
LITHIUM CHILE SIGNS LETTER OF INTENT WITH MONUMENTAL MINERALS TO JV UP TO
75% OF THE DRILL READY SALAR DE LAGUNA BLANCA, CHILE CESIUM SALT-LITHIUM
BRINE PROJECT FROM LITHIUM CHILE INC.
NEAR SURFACE SEDIMENT SAMPLES ASSAYING UP TO
692 PPM CESIUM AND 1450 PPM LITHIUM.
TSX Venture Exchange: LITH For Immediate Release
OTC-BB:LTMCF
CALGARY, ALBERTA –March 9, 2022: Lithium Chile Inc. (“LITHIUM CHILE” or the “Company”)
(TSX-V: LITH) is pleased to announce that the Company has entered into an arm’s length letter of
intent (“LOI”) with Monumental Minerals Corp. ( “Monumental”) (TSX-V: MNRL; FSE: BE5 ) to
acquire up to 75% of the 5200 -hectare Salar De Laguna Blanca project (the “ Laguna Project”)
located near the town of San Pedro de Atacama, Chile.
The Laguna Project is located within the prolific lithium triangle, a zone within the central Andes
high desert that includes Chile, Argent ina, and Bolivia. This zone is estimated to contain more
than half of the world’s lithium supply beneath the many salt flats, also known as salars, that are
common to the region. The Laguna Project includes both active and paleo salar brines and salts
(Fig. 1). The Laguna Blanca property consists of 23 exploration concessions totaling 5,200
hectares, 100% owned by Lithium Chile through its wholly owned Chilean subsidiary Minera
Kairos Chile Limitada (“Minera Kairos”) (Fig. 2).
The Laguna Project is an early exploration stage project that is accessible from the town of San
Pedro de Atacama, 80 kilometres to the west via the paved road 27CH to the north end of Salar
de Aguas Calientes then a truck accessible trail heading north to the interior of the prop erty.
Travel time from San Pedro de Atacama to the property is approximately 1 hour and 30 minutes.
Between April 2018 and June 2021 Minera Kairos completed preliminary reconnaissance and
detailed geochemical and geophysical surveys:
• Follow up sediment geochemical and surface water surveys covered the
bulk of the active salar - laguna complex and adjacent paleo salts and
sediments. Laboratory analysis of the sediment samples range from 75 –
692 ppm cesium and 250 – 1450 ppm lithium outline a large area of cesium
enrichment of about 9 km 2, which is open to the NE and SE. Water
samples taken from the surface lagunas and subsurface sample from
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shallow 0.5 – 1.3m deep hand auger holes range from 20 – 40 mg/l cesium
plus 780 – 1230 mg/l lithium from assay results.
• A 13-line kilometer reconnaissance TEM survey covering the active salar -
laguna complex and its adjacent SW flank. This survey identified a 100 -
200m thick, 10 km2 high conductivity TEM anomaly which underlies the
SW flank of the lithium – cesium anomaly.
• Bulk brine samples are currently being tested for lithium extraction.
President & CEO, Steve Cochrane remarks “The Laguna Blanca lithium joint venture is a great
opportunity for both Lithium Chile and Monumental. This JV allows our Company to advance one
of it’s more promising projects in Chile while still allowing the company to focus it resources on
advancing and building on it’s initial 43-201 compliant resource on our Arizaro property. The large
portfolio of projects the Company has in Chile allows us to bring in experienced partners that will
help develop these projects more rapidly than we could do on our own.”
Figure 1. Photo of the (a) active salar showing lithium rich brines in the north central sector of the
property and (b) the paleo-salar area of Laguna Blanca looking to the southwest.
(a)
(b)
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About Cesium
Currently, almost the entire global cesium supply comes from the Tanco mine, a hard rock deposit
in Manitoba, Canada. The largest consumer of cesium is the oil and gas exploration sector.
Cesium formate is added to drilling fluids to lubricate drill bits, to bring rock cuttings to the
surface, and to prevent blowouts in high pressure wells. Cesium is also critical in the 5G
Figure 2. Laguna Blanca - 23 exploration concessions totaling 5,200 hectares, 100% owned
by Lithium Chile through its wholly owned Chilean subsidiary Minera Kairos Chile Limitada.
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communication revolution, as it is critical in atomic clocks that keep vast communication
networks in sync for internet of things (IoT) functions.
About Critical Metals
The US government has identified lithium and select rare earth elements (REEs) as critical metals,
and there is currently a strong push to curtail the US reliance of these metals from sources that
are not politically friendly. On February 22, 2022, US President Joe Biden announced government
financial incentives for both lithium and REE producers to develop downstream processing and
refining of REEs and lithium. Additionally, a bi -partisan US senate bill recently passed, w hich
would make it illegal for US defense contractors to procure REEs from China. Monumental
Minerals is positioned to play a significant role in lithium and REE stability and sustainably in the
Americas.
About Lithium
Over the past year, the spot price for lithium has increased by over 550% (Fig. 3). The price of the
metal has out paced every other metal. The only other commodities with a similar price
appreciation trajectory are rare earth elements used in the production of high -performance
magnets for electric motors (neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium
(Tb)). The driver for the lithium price explosion is widely believed to be due to increases in
demand for the manufacturing of EV batteries, as automakers transition their fle ets to EVs.
According to Adamas Intelligence, a record 25,921 tonnes of lithium carbonate equivalent (LCE)
were used to manufacture EV batteries for passenger vehicles globally in December 2021.
Figure 3. The lithium carbonate spot price over the past 12 months has appreciated by
over 550%. Price unit is yuan/tonne.
Lithium Carbonate, 99.5% Li2CO3 min, battery grade, China
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Terms of the Proposed Transaction
Subject to the execution of a definitive agreement (“ Definitive Agreement”), Monumental will
have the option to earn-in up to a 75% interest in the Laguna Project by issuing to Lithium Chile
that number of common shares of Monumental that would result in Lithium Chile holding, on a
non-diluted basis ( after any potential financing in connection with or related to this potential
transaction), 9.9% of the issue and outstanding common shares of Monumental (the “ Payment
Shares”). In addition, Monumental must make certain staged cash payments to Lithium Chile and
incur exploration expenditures on the Laguna Project as follows:
(a) Make cash payments of an aggregate of C$1,500,000 according to the following schedule:
(i) $200,000 within fifteen (15) days of final TSX Venture Exchange approval
of this proposed transaction (the “Acceptance Date”);
(ii) $250,000 on or before the eighteen (18) month anniversary of the
Acceptance Date;
(iii) $300,000 on or before the second anniversary of the Acceptance Date; and
(iv) $750,000 on or before the third anniversary of the Acceptance Date.
(b) Incur minimum expenditures on the Laguna Project of not less than an aggregate
of C$1,500,000 according to the following schedule:
(v) $200,000 on or before the first anniversary of the Acceptance Date;
(vi) $500,000 on or before the second anniversary of the Acceptance Date; and
(vii) $800,000 on or before the third anniversary of the Acceptance Date.
Subject to the exercise of the option to acquire 75% of the Laguna Project, Lithium Chile would
retain a 1% net smelter returns royalty payable upon the commercial production of the Laguna
Project. In addition to the statutory hold period of four months and a day from the date of
issuance, the Payment Shares will be subject to a 12-month voluntary hold period from the date
of issuance. Upon Monumental earning a 75% interest in the Laguna Project, Monumental and
Lithium Chile will use commercially reasonable efforts to negotiate and execute a joint venture
agreement for the purpose of jointly carrying out exploration, evaluation, and development of
the Laguna Project.
Further details regarding the proposed transaction with Lithium Chile will be provided in a
comprehensive news release if, and when, the parties enter into the Definitive Agreement. The
proposed transaction between Monumental and Lithium Chile is subject to, among other things,
the execution of the Definitive Agreement and TSX Venture Exchange approval.
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Qualified Person
The scientific and technical information contained in this news release has been reviewed and
approved by Terry Walker, M.Sc., P.Geo, Vice President of Exploration, a Director of the Company
and a “Qualified Person” as defined in National Instrument 43-101 – Standards of Disclosure for
Mineral Projects.
About Lithium Chile
Lithium Chile is advancing a lithium property portfolio consisting of 6 9,200 hectares covering
sections of 10 salars and two laguna complexes in Chile and 23,300 hectares in Argentina.
Lithium Chile also owns 5 properties, totaling 20,429 hectares, that are prospective for gold, silver
and copper. Exploration efforts are continuing on Lithium Chile’s Carmona gold/silver/copper
property which lies in the heart of the Chilean mega porphyry gold/ silver/copper belt.
Lithium Chile’s common shares are listed on the TSX-V under the symbol “LITH” and on the OTC-
BB under the symbol “LTMCF”.
To find out more about Lithium Chile Inc., please contact Steven Cochrane, President and CEO
via email: [email protected], Jose de Castro Alem, Argentina Manager via email
[email protected] or Michelle DeCecco, Vice President of Corporate Development via
email [email protected] or at 403-390-9095.
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.
Forward Looking Statements
This news release may contain certain forward -looking information and forward -looking statements within the meaning of
applicable securities legislation (collectively "forward -looking statements"). Generally, forward -looking statements can be
identified by the use of forward -looking terminology such as "expected", "anticipated", "aims to", "plans to" or "intends to"
or variations of such words and phrases or statements that certain actions, events or results "will" occur. In particular, th is
news release contains forward-looking statements relating to, the entering into of definitive agreements and regulatory body
approvals. Such forward -looking statements are based on various assumptions and factors that may prove to be incorrect,
including, but not limited to, factors and assumptions with respect to: the g eneral stability of the economic and political
environment in which the Company operates; the timely receipt of required regulatory approvals; the ability of the Company
to obtain future financing on acceptable terms; currency, exchange and interest rates; operating costs; the success the
Company will have in exploring its prospects and the results from such prospects. You are cautioned that the foregoing list of
material factors and assumptions is not exhaustive. Although the Company believes that the assumptions and factors on which
such forward -looking statements are based are reasonable, undue reliance should not be placed on the forward -looking
statements because the Company can give no assurance that they will prove to be correct or that any of the events anticipated
by such forward -looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive
there from. Actual results could differ materially from those currently anticipated due to a number of factors and ri sks
including, but not limited to: fluctuations in market conditions, including securities markets; economic factors; the risk th at
the new lithium or cesium exploration tender processes does not yield the anticipated benefits to the Company, including the
risk that the Company will not receive the approvals necessary and the impact of general economic conditions and the COVID-
19 pandemic. The Company does not undertake to update any forward -looking statements herein, except as required by
applicable securi ties laws. All forward -looking statements contained in this news release are expressly qualified by this
cautionary statement.