Rain Options Huasco Li Project in Chile and Board Addition
RAIN CITY RESOURCES INC.
NEWS RELEASE
Rain City Announces Move into Lithium and Appointment to the Board
Vancouver, B.C. – June 6, 2024 ‐ Rain City Resources Inc. (CSE: RAIN) (the “Company” or
“Rain”) announces that it has entered into an Option Agreement to acquire a 100% interest in the
Huasco lithium project located in northern Chile (the “Huasco Project”).
The Salar de Huasco is located approximately 12 km from the border with Bolivia and
approximately 55 km from Salar de Uyuni, recognized as one of the single largest lithium
resources in the world. The Huasco Project comprises 31 mining exploration applications and
covers 8,000 hectares, or 80 square kilometres, of the southwestern extent of Salar de Huasco ,
approximately 170 km east of the city of Iquique.
The property is located within the northwestern margin of the Lithium Triangle which covers a vast
region where Chile, Argentina and Bolivia intersect , and is host to a majority of the world’s
recognized lithium resources.
Figure 1: Huasco Claim Boundary
The area surrounding the Huasco Project has seen little modern exploration activity, however its
geological potential has long been recognized. Adjacent mining rights are held by mining
companies Enami, Codelco, Collahuasi and BHP.
In January of this year, the vendor company conducted the first ever field test within the Huasco
Project area with a very limited environmental sampling program. A total of 23 samples were
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taken at surface. Of those, 18 samples were taken from fresh water and five samples were taken
from brine. Samples from brine are reported below with lithium values ranging from 73 mg/l to a
high of 1,050 mg/l (see Table 1). Laboratory preparation and analysis were conducted by ALS in
Santiago, Chile.
Table 1 – Laboratory Results
Water
Sample Easting Northing RL Observations Li_mg/L
HB-19 518,340 7,755,632 3786 Brine - orange outcrop 249
HB-20 518,091 7,755,656 3789 Brine - within salar crust 1050
HB-21 517,959 7,755,747 3789 Brine, within salar crust 497
HB-22 515,191 7,756,492 3787 Brine - pink outcrop 138
HB-23 515,231 7,756,381 3787 Brine - pink outcrop 73
Figure 2: Sample Locations
5km
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Salars are typically found in arid regions and are characterized by the accumulation of evaporite
minerals such as salt and are often underlain by brines rich in minerals. While most of the world’s
lithium reserves are contained in salars, they represent a unique challenge to development, with
protections for water, local ecology, and wildlife chief among them.
The government of Chile has recently enacted legislation to exercise greater control over the
lithium extractive industry including the mandated use of direct lithium extraction (DLE).
Compared to predecessor operations using solar evaporation ponds, DLE represents a closed
loop process that consumes little to no water, causes minimal land disturbance, and presents a
much lower carbon footprint.
The Company believes that the Huasco Project represents a unique opportunity to engage in
responsible resource exploration and management. It is situated within a national park and a
protected aquifer zone and the Company intends to put forward a plan to local communities and
Chile’s Environmental Evaluation Agency to establish a pathway to advance the project.
Terms of the Option Agreement:
The Company will initially acquire the right to conduct lithium brine exploration activities on the
property. These rights will be acquired in consideration of a cash payment of US$20,000. During
the exercise of these rights, and the exploration of the properties, the Company will have the
option to enter into a mineral lease with the Vendor, which is non-arms-length from Rain. Such a
lease would provide the Company with the right to conduct commercial operations on the property
subject to terms of a Royalty Agreement, whereby the Vendors would receive a 3% NSR on the
Huasco Project. The contemplated agreement would include advance royalty payments
beginning from the publication of a positive Pre-Feasibility Study.
The Company has been granted a 90 -day period to complete due diligence and customary
documentation reflecting the above terms.
Appointment to the Board
The Company is pleased to welcome Dr. David A. Shaw as Chairman of the Board. Dr. Shaw
spent the majority of his career engaged in either the financial or technical areas of the resource
industry. He obtained a B.Sc.Geology in 1973 from the University of S heffield, U.K., and a Ph.D
in Structural Geology from Carleton University, Canada, in 1980.
Post doctoral graduation he first worked for Bema Resource Management, the precursor to Bema
Gold Inc, before returning to Chevron as in-house structural geologist in the Mineral Division. He
subsequently transferred to the Financial Evaluations Group in C algary. Upon leaving Chevron
he joined Charlton Securities Inc. in Calgary where he initiated the Resource Research Group,
an entity focussed on the due diligence of resource projects. Shaw returned to Vancouver in 1990
to head up the Corporate Finance Department’s due diligence at Yorkton Securities Inc. In 2009
he acquired a lithium brine project in Chile which, via a junior public company, was acquired by
Talison Inc., the Australian hard rock lithium producer. Shaw joined Talison’s board in 2010,
during the next three years the production was doubled and Talison cemented its position as the
world’s largest lithium producer. In 2013 the company was acquired by Tianqui, the Chinese
processing company. Since then Shaw has had a continued involvement in lit hium exploration.
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From 2005 to 2019 he was on the board of First Majestic Silver Inc, during that period the
company opened both its initial and eighth silver mine in Mexico.
The information in the Press release has been reviewed and approved by Derrick Strickland
P.Geo. (1000315) a qualified person under NI43 -101. The mineralization on adjacent Projects
may not be indicative of the mineralization on Huasco Project.
FOR FURTHER INFORMATION CONTACT:
Christopher Reynolds
Interim Chief Executive Officer
Neither the Canadian Securities Exchange nor its Regulation Service Provider (as the term is
defined in the policies of the Canadian Securities Exchange) accepts responsibility for the
adequacy of accuracy of this news release.