Wealth and Wealth Copper Close Escalones Copper-Gold Porphyry Project Acquisition Wealth Copper Closes Cristal Project Acquisition
Suite 2300 – 1177 West Hastings Street, Vancouver, BC Canada V6E 2K3
Tel 604.331.0096 Fax 604.408.7499 www.wealthminerals.com
NR19-20 September 27, 2019
Wealth and Wealth Copper Close Escalones Copper-Gold Porphyry Project
Acquisition
Wealth Copper Closes Cristal Project Acquisition
FOR IMMEDIATE RELEASE....Vancouver, British Columbia: Wealth Mi nerals Ltd.
(the “Company” or “ Wealth”) - (TSXV: WML; OTCQX: WMLLF; SSE: WMLCL;
Frankfurt: EJZN) announces that, further to its news releases d ated December 4, 2018, April 4,
2019 and June 3, 2019, Wealth Copper Ltd. (“ Wealth Copper”) has completed the acquisition
(the “Escalones Acquisition”) of TriMetals Mining Inc.’s (“TMI”) interest in and to the mineral
exploitation concessions and the mineral exploration concessions and related assets and liabilities
that comprise the Escalones copper-gold porphyry project, locat ed in the Santiago Metropolitan
Region, in Central Chile (the “ Escalones Project”). Wealth Copper also announces that it has
acquired (the “Cristal Acquisition”; together with the Escalones Acquisition, the “Acquisitions”)
New Energy Metals Corp.’s (“ ENRG”) interest in and to the mineral exploitation concessions
comprising the Cristal copper project, located in Region XV of Arica and Parinacota, Chile
(the “Cristal Project”).
Wealth Copper also announces the closing of a non-brokered priv ate placement (the “ Wealth
Copper Financing”) of 8,140,000 common shares in the capital of Wealth Copper ( the “Wealth
Copper Shares ”) at a price of $0.10 per Wealth Copper Share for aggregate pr oceeds of
approximately $814,000. Upon the closing of the Escalones Acquisition and after giving effect to
the Wealth Copper Financing, Wealth owns 25,000,000 Wealth Copp er Shares, representing
42.6% of the total issued and outstanding Wealth Copper Shares.
Wealth Copper is currently worki ng to complete the previously a nnounced going-public
transaction (the “ Going-Public Transaction ”) with Allante Resources Ltd. (TSXV: ALL.H)
(“Allante”). The Company expects the Going-Public Transaction to be completed in Q4 2019.
“Wealth Copper has completed the acquisitions of the Escalones Project and the Cristal Project.
Wealth continues to focus on its lithium projects, while the Co mpany also utilizes its know-how
and human capital to add value for Wealth’s shareholders by utilizing Wealth Copper as a special
purpose vehicle to gain exposure to copper assets,” stated Henk van Alphen Wealth’s CEO. “It is
my view that once the US-China trade dispute is resolved, coppe r demand, which has stalled due
to uncertainty, will surge. The battery metal industry is pois ed for a long-term boom and having
direct exposure to lithium and indirect exposure to copper, pro vides Wealth’s investors with a
unique investment opportunity.”
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Escalones Acquisition and Project Description
The Escalones Project is located 35 km east of El Teniente, one of the world’s largest underground
copper mines and within the renowned Chilean porphyry copper be lt that runs north-south in the
central Andes Mountains.
The Escalones Project covers an area of 161 km 2, of which (i) 46 km 2 are covered by
19 exploitation concessions that are the subject of an option a greement between an indirect,
wholly-owned subsidiary of Wealth Copper, TriMetals Mining Chile SCM (“TMI Chile”), and a
third-party vendor for a 100% int erest in and to the concession s (the “ Escalones Option”) and
(ii) 115 km2 are covered by 40 exploration concessions, owned by TMI Chile.
Historical Estimate
A resource estimate for the Escalones Project was completed by Hard Rock Consulting, LLC for
TMI in 2014:
Grade & Tonnage
Tonnes Copper Gold Silver Moly
Millions % g/t g/t %
Indicated 232.6 0.31 0.067 0.661 0.006
Inferred 527.7 0.34 0.036 0.849 0.007
Total Contained Metal
Copper Gold Silver Moly
Mlbs Ozs Moz Mlbs
Indicated 1,578 498,012 4.9 31.9
Inferred 3,992 609,437 14.4 79.5
1. Readers are cautioned that the Company’s qualified person h as not done
sufficient work to classify the historical estimate as a current mineral resource
and the Company is not treating such results as a current miner al resource.
Mineral resources are not miner al reserves and do not have demo nstrated
economic viability as there is no certainty that all or any part of the resources
will be converted into reserves. Inferred resources are that p art of a mineral
resource for which quantity and grade or quality are estimated on the basis of
limited geological evidence and sampling. It is reasonably exp ected that the
inferred resources could be upgrad ed to indicated resources wit h continued
exploration. To verify and classify the historical mineral resource estimate as
a current mineral resource estimate, the model and estimation are required to
be reviewed and evaluated by a qualified person.
2. For more information see the Technical Report entitled “Res ource
Estimate on the Escalones Porphyr y Copper Project” effective da te June 28,
2013 and amended on July 11, 2014 and filed on TMI’s SEDAR profile.
The Escalones Project has excellent infrastructure, including r oad access, electricity, access to
seaports, and a gas pipeline that crosses a 70 km 2 portion of the property. The Escalones Project
Wealth Minerals Ltd. - 3 - September 27, 2019
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hosts a 4 km2 area of hydrothermal alteration with coincident geophysical anomalies. Copper, gold
and silver mineralization occurs as replacement-style skarn in calcareous sedimentary rocks and
as disseminated porphyry mineralization in related intrusive ro cks. Copper mineralization at the
Escalones Project occurs primarily as chalcopyrite, bornite, covelline as well as copper oxides near
surface. The hydrothermal alteration exposed at surface includes intense zones of quartz-sericite,
potassic, and calc-silicate alteration assemblages.
The Escalones Acquisition was co mpleted pursuant to a share pur chase agreement made as of
May 31, 2019 among Wealth Copper, the Company, TMI and Escalones Resource Corp., a wholly-
owned subsidiary of TMI (“ERC”), whereby Wealth Copper acquired 100% of TMI’s interest in
and to the Escalones Project. As consideration, Wealth Copper issued (i) 25,000,000 Wealth
Copper Shares to ERC, (ii) granted to ERC a 2% net smelter retu rns royalty on the Escalones
exploration concessions (which is in addition to an existing 2% net smelter returns royalty on the
Escalones exploitation concessions), and (iii) is required to m ake an aggregate of $1,000,000 in
cash payments to ERC (of which $150,000 has already been paid). The remaining payments
required to exercise the Escalones Option in full are as follows:
Date
Cash Payment
(USD)
June 30, 2020 $200,000
June 30, 2021 $300,000
June 30, 2022 $500,000
June 30, 2023 $500,000
June 30, 2024 $3,000,000
Total: $4,500,000
Further, pursuant to a letter agreement (the “Side Letter”) entered into among the Company, TMI
and ERC (together with TMI, the “ TMI Group”), the parties to the Side Letter agreed to restrict
the extent of their ability to transfer or sell shares held by them in the capital of Wealth Copper (or
the Resulting Issuer) until the earlier of (i) the fifth anniversary of the closing date of the Escalones
Acquisition or (ii) the first date after such closing date on w hich either the Company or the TMI
Group, directly or indirectly, cease to beneficially own more than 5% of the issued and outstanding
common shares in the capital of Wealth Copper (or the Resulting Issuer).
Cristal Acquisition and Project Description
The Cristal Project is a porphyry copper target located in nort hern Chile, near the Bolivia/Chile
border and comprises 9 km2 of exploitation concessions. The Cristal Project was the subject of a
technical report prepared pursu ant to NI 43-101 titled “Nationa l Instrument 43 ‑101 Technical
Report for the Cristal Copper Property, Province of Arica, XV R egion of Arica and Parinacota,
Chile”, dated February 28, 2018, prepared by Thomas Henricksen and filed on ENRG’s SEDAR
profile on March 29, 2018.
Wealth Minerals Ltd. - 4 - September 27, 2019
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It is anticipated that Wealth C opper’s initial focus on the Cri stal Project will be to drill-test the
center of coincident magnetic, gr avity and electromagnetic anom alies reported by BHP Billiton
Ltd. (“BHP”) as a result of airborne geophysical data surveys conducted by it on the Cristal Project
between 2012 and 2014. This large geophysical anomaly is expec ted to be the primary target at
the Cristal Project, with the target depth expected to be 600 m to 800 m from surface (see news
release dated December 4, 2019).
The Cristal Acquisition was completed pursuant to an assignment and assumption agreement made
effective March 27, 2019 between Wealth Copper and ENRG (the “ Assignment Agreement”)
and an assignment of unilateral option to purchase mining claim s made effective July 23, 2019
between a wholly-owned Chilean subsidiary of ENRG (“ ENRG Chile ”) and a wholly-owned
Chilean subsidiary of Wealth Copper (“ Wealth Copper Chile”), whereby ENRG Chile granted,
assigned, transferred and set over to Wealth Copper Chile all o f its right, title, obligations and
100% interest in and to the underl ying option agreement in resp ect of the Cristal Project
(the “Cristal Option ”), in consideration for Wealth Copper delivering to ENRG Chile 50,000
fully-paid and non-assessable common shares in the capital of Wealth. Wealth Copper is required
to make the remaining payments outlined below to exercise the Cristal Option in full:
Date
Cash Payment
(USD)
Upon the earlier of the commencement of drilling
at the Cristal Project and December 31, 2019
$50,000
March 31, 2020 $150,000
August 4, 2020 $500,000
August 4, 2021 $700,000
August 4, 2022 $3,000,000
Total: $4,400,000
Wealth Copper will be responsible for all exploration costs and activities during the Cristal Option
period. There are no minimum exploration commitments during the Cristal Option period.
The underlying Cristal property owner retains a 3% net smelter returns (“NSR”) royalty, of which
two-thirds (⅔) can be repurchased by paying USD $2,000,000 for each percentage point of the
NSR royalty bought back (aggregate USD $4,000,000 for 2% NSR ro yalty). In addition, there is
also an existing 1% NSR royalty in favour of Condor Resources Inc. that can be repurchased in its
entirety upon a payment of USD $1,000,000.
The Assignment Agreement provides that if Wealth Copper Chile e xercises the Cristal Option,
then Wealth Copper Chile and ENRG Chile will be deemed to have f o r m e d a j o i n t v e n t u r e
(the “Joint Venture ”) for the continued exploration of the Cristal Project, with t he initial
participating interests of the Joint Venture participants being Wealth Copper Chile – 70% and
ENRG Chile – 30%. Assuming the formation of the Joint Venture, a 2% NSR royalty will be
granted to a participant in the Joint Venture if its participating interest therein falls to 10% or less
(the “JV Royalty”), provided that one-half (1%) of the JV Royalty can be purchased by the other
party for $1,000,000.
Wealth Minerals Ltd. - 5 - September 27, 2019
NR19-20 – Continued
The Going-Public Transaction
In connection with the Acquisiti ons, Wealth Copper entered into a letter of intent with Allante
(after the closing of the Going-Public Transaction, the “Resulting Issuer”) dated June 7, 2019 in
respect of the Going-Public Transaction, whereby Allante will a c q u i r e a l l o f t h e i s s u e d a n d
outstanding Wealth Copper Shares and continue the business of W ealth Copper in exchange for
the issuance of common shares in the capital of Allante to the Wealth Copper shareholders on a
one (1) for one (1) basis (see Allante new release dated June 13, 2019).
It is also the intention of the parties that in connection with the Going-Public Transaction, private
placement financings by Allante will be completed in the aggreg ate amount of at least
$4,186,000 (the “Concurrent Financing ”). The parties have agreed that TMI’s ownership
interest in the Resulting Issuer will not be less than 30% imme diately after giving effect to the
Going-Public Transaction and the Concurrent Financing and TMI h as been granted the right to
participate in certain future equity financings to allow TMI to maintain its pro rata ownership
interest in the equity capital of the Resulting Issuer. In addition, each of TMI and Wealth will each
be granted the right to nominate one director to the board of d irectors of the Resulting Issuer for
so long as it holds at least 20% of the issued and outstanding shares of the Resulting Issuer.
Qualified Person
John Drobe, P.Geo., a qualified person as defined by National I nstrument 43-101 Standards of
Disclosure for Mineral Projects, has reviewed the scientific and technical information that fo rms
the basis for this news release and has approved the disclosure h e r e i n . M r . D r o b e i s n o t
independent of the Company as he is a consultant and shareholder of Wealth, and holds incentive
stock options of the Company.
About Wealth Minerals Ltd.
Wealth is a mineral resource company with interests in Canada, Mexico, Peru and Chile. The
Company’s main focus is the acquisition and development of lith ium projects in South America.
To date, the Company has positioned itself to develop the Ataca ma Project alongside existing
producers in the prolific Atacama region, where the Company has a substantial licenses package.
The Company has also positioned itself to play a role in asset consolidation in Chile with various
lithium properties throughout the country.
Lithium market dynamics and a rapidly increasing metal price are the result of profound structural
issues with the industry meeting anticipated future demand. We alth is positioning itself to be a
major beneficiary of this future mismatch of supply and demand. The Company also maintains
and continues to evaluate a portfolio of precious and base metal exploration-stage projects.
For further details on the Compa ny readers are referred to the Company’s website
(www.wealthminerals.com) and its Canadian regulatory filings on SEDAR at www.sedar.com.
Wealth Minerals Ltd. - 6 - September 27, 2019
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For additional Wealth Copper updates, follow the social links below:
Facebook: www.facebook.com/WealthCopper
Twitter: www.twitter.com/WealthCopper
LinkedIn: https://www.linkedin.com/company/wealthcopper
On Behalf of the Board of Directors of
WEALTH MINERALS LTD.
“Hendrik van Alphen”
Hendrik van Alphen
Chief Executive Officer
For further information, please contact: Marla Ritchie, Henk va n Alphen or Tim McCutcheon
Phone: 604-331-0096
E-mail: [email protected]
Neither 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 news release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, “forward-
looking statements”) within the meaning of applicable Canadian and U.S. securities legislation, including the United
States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact,
included herein including, without limitation, statements with respect to anticipated exploration program results from
exploration activities, the Company’s expectation that Wealth Copper will be able to complete the Going-Public
Transaction or enter into agreements to acquire interests in additional mineral properties (including the definitive
agreements for the Going-Public Transaction), the discovery and delineation of mineral deposits/resources/reserves,
the closing and amount of the Concurre nt Financing, the exercise of the Cr istal Option and the Escalones Option,
and the anticipated business plans and timing of future activities of the Company and Wealth Copper, are forward-
looking statements. Although the Company believes that such statements are reasonable, it can give no assurance
that such expectations will prove to be correct. Forwar d-looking statements are typically identified by words such
as: “believes”, “expects”, “anticipates”, “intends”, “e stimates”, “plans”, “may”, “should”, “would”, “will”,
“potential”, “scheduled” or variations of such words and phrases and similar expressions, which, by their nature,
refer to future events or results that may, could, would, might or will occur or be ta ken or achieved. In making the
forward-looking statements in this news release, the Co mpany has applied several mate rial assumptions, including
without limitation, that Wealth Copper will be able to negotiate and enter into the definitive agreements for the Going-
Public Transaction, and that TSX and TSXV acceptance and the required corporate approvals of same will be
obtained, that there will be investor interest in the Concurrent Financing, market fundamentals will result in sustained
lithium, vanadium, copper and precious metals demand and prices, the receipt of any necessary permits, licenses and
regulatory approvals in conn ection with the future devel opment of the Company’s or Wealth Copper’s Chilean
projects in a timely manner, including the Escalones Project and the Cristal Project, the availability of financing on
suitable terms for the development, construction and con tinued operation of the Com pany and Wealth Copper’s
projects and the Company and Wealth Copper’s ability to comply with environmental, health and safety laws.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company and Wealth Copper to differ materially from any future
results, performance or achievements expressed or implied by the forward-looking information. Such risks and other
factors include, among others, operating and technical difficulties in connection with mineral exploration and
development activities, actual results of exploration activities, including on the Escalones Project and the Cristal
Project, the estimation or realization of mineral reserves and mineral resources, the fact that the Company’s and
Wealth Minerals Ltd. - 7 - September 27, 2019
NR19-20 – Continued
Wealth Copper’s interests in the Escalones exploitation concessions and the Cristal Project are options only and there
is no guarantee that such interests, if earned, will be cer tain, the timing and amount of estimated future production,
the costs of production, capital expenditures, the costs and timing of the devel opment of new deposits, requirements
for additional capital, future prices of lithium and copper, changes in general economic conditions, changes in the
financial markets and in the demand and market price for commodities, lack of investor interest in the Concurrent
Financing, accidents, labour disputes and other risks of the mining industry, delays in obtaining governmental
approvals, permits or financi ng or in the completion of development or construction activities, changes in laws,
regulations and policies affecting mining operations, title disputes, the inability of the Company, Wealth Copper and
Allante, as applicable, to obtain any necessary permits, consents, approvals or authorizations, including acceptance
by the TSX and TSXV, as applicable, required for the Concurrent Financing, the filing of the definitive agreements
for the Going-Public Transaction and the continued listing of the Resulting Issuer on the TSXV, the formation of the
Joint Venture, the timing and possible outcome of any pending litigation, environmental issues and liabilities, and
risks related to joint venture operations, and other risks and uncertainties disclosed in the Company’s latest interim
Managements’ Discussion and Analysis and filed with the Ca nadian Securities Authorities. All of the Company’s
Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these
materials, including the technical reports filed with respect to the Company’s mineral properties.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no
obligation to update any of the forward-looking statements in this news release or incorporated by reference herein,
except as otherwise required by law.