Wealth Minerals Corporate Update: Continuing to Build Value
Suite 2300 – 1177 West Hasti ngs Street, Vancouver, BC Canada V6E 2K3
Tel 604.331.0096 Fax 604.408.7499 www.wealthminerals.com
NR20-06 April 1, 2020
Wealth Minerals Corporate Update: Continuing to Build Value
FOR IMMEDIATE RELEASE....Vancouver, British Columbia: Wealth Mi nerals Ltd.
(the “Company” or “Wealth”) - (TSXV: WML; OTCQX: WMLLF; SSE: WM LCL; Frankfurt:
EJZN), provides the public and its shareholders with a corporate update.
A Message from Wealth’s CEO:
“I write this message in order to reach out to all of our stakeholders during this difficult time. The
team and management at Wealth continues to work tirelessly, alt hough remotely, and remains
optimistic that the Company will exit this current situation st rong and with great promise. By
providing this update, I trust it will give our stakeholders a better understanding of the tasks the
Company has before it, as well as to provide a reminder of the work that has been completed by
the Company to set up the next stage of its development” stated Henk van Alphen, CEO of Wealth.
Lithium Overview:
Wealth has been focused on the acquisition and development of premier lithium assets in Chile for
the past four years. In that time, the Company has assembled a Chilean team of employees and
consultants that are highly qualified to advance the selected l ithium projects. Wealth previously
acquired a large license position of 46,200 hectares in the Ata cama salar, a project that is highly
prospective and is the Company’s core lithium asset (the “Ataca ma Project”). To address in-
country regulatory issues, and foster a strong state partnership, Wealth entered into an agreement
to form a strategic alliance with the state-owned National Mining Company of Chile (“ENAMI”).
Additionally, in order to optimize our lithium extraction technology and move towards sustainable
and environmentally friendly future production with a strong op erating partner, Wealth recently
entered into an MOU (as defined below) with Uranium One Group ( “Uranium One”), a global
mining company.
Over the last two years, Wealth has conducted regular meetings and forums with the indigenous
people located in the Atacama salar area, building trust and di alogue. On December 3, 2019, the
Reuters news agency published an article on the Chilean lithium industry, wherein ENAMI’s
Chairman, Baldo Prokuriça, who al so serves as Mining Minister f or Chile, “…told Reuters on a
trip to the Atacama region [that] the government had asked state-owned copper giant CODELCO
and smaller state miner National Mining Company, ENAMI, to forge ahead with lithium projects
in the region.” In reference to additional local salar regions, Mr. Prokuriça also stated that “…if
his company moved to exploit th e [Aguilar region], it would loo k to tie up with Canadian-listed
Wealth Minerals Ltd.”
Based on the Company’s work in the Atacama region and feedback from partners and colleagues,
Wealth’s management anticipated that 2020 would bring the succe ssful completion of a formal
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partnership with ENAMI by March, t he completion of preliminary field work at the Atacama
Project (funded by Uranium One) by April, and an expected close of the Uranium One transaction
by July. Because of the global COVID-19 pandemic, management now anticipates a delay in that
expected schedule. Please see below for more details.
Strategic Partner Status:
Wealth, since signing a Memorandum of Understanding (the “MOU”) with Uranium One ( see
news release of October 15, 2019), has worked with its colleagues at Uranium One to push forward
with the work needed in order to close the transaction as conte mplated in the MOU. Significant
steps have been taken by Wealth and Uranium One to select contr a c t o r s f o r f i e l d w o r k a t t h e
Atacama Project and retain consultants for legal, financial and geological studies. Additionally in
March 2020, Wealth and Uranium One planned to conduct a presentation and seminar in Chile the
proposed development plan for the Atacama Project for the benef it of local indigenous groups,
government officials and the press. The COVID-19 pandemic has, temporarily, put this
presentation plan on hold, and a new a new date for the presentation and seminar is expected to be
announced once COVID-19 issues are resolved. Wealth’s management continues to believes that
it can see the MOU through to a successful transaction with Ura nium One, provided ENAMI
completes its agreement to form a JV (as defined below) with Wealth (see details below).
On March 19, 2018 Wealth signed a strategic alliance agreement (the “Agreement”) with state-
owned ENAMI, whereby the parties agreed to form a partnership ( the “JV”) to develop and
commercialize the Atacama Project ( see news release of March 19, 2018 ) . T h e A g r e e m e n t
provided that the parties would ha ve 24-months to enter into a definitive agreement that will
govern the formation and operation of the JV. Although the Agreement’s 24-month period to form
a JV has now expired, Wealth’s management believes ENAMI will enter into the JV based on the
following factors: 1) the JV does not require ENAMI to make any capital outlays, as they receive
a free carried interest, 2) Wea lth now has a technologically-ad vanced, financially robust major
partner in Uranium One, 3) Uranium One intends to deploy its sorption technology at the Atacama
Project, thus avoiding the use of solar evaporation, and 4) the Chilean government has repeatedly
directed state companies to advance lithium assets. In the even t that ENAMI does not enter into
the JV with Wealth, the Company notes there are other avenues for it to be compliant with existing
Chilean regulations governing the development of lithium projects and export of lithium products,
and that the regulations themsel ves are slated to be amended in the near-future, so as to less
restrictive, as set out in pending Chilean legislative proposals.
Wealth Copper:
The transaction to take Wealth Copper Ltd. (“Wealth Copper”), 4 2.63% owned subsidiary of the
Company, public via a share exchange transaction with a capital pool company, Allante Resources
Ltd. (“Allante”) (see news release dated September 27, 2019), remains very active. Despite current
market volatility attributed to COVID-19, the planned financing and transaction with Allante (see
press release dated February 11, 2020) has continued forward with the engagement of Red Cloud
Financial Services of Toronto, Canada (“Red Cloud” ) to provide financial advisory services to
Wealth Copper and the resulting issuer. Management believes the Company’s ownership of
Wealth Copper represents significant value to Wealth shareholde rs and will continue to provide
updates on the progress of Wealth Copper’s going-public transac tion. Please see:
www.wealthcopper.com for additional details on Wealth Copper and its assets.
Wealth Minerals Ltd. - 3 - April 1, 2020
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Kootenay Project:
Wealth has the option agreement to earn-in to two nickel-cobalt-copper properties in south-eastern
British Columbia, collectively called the “Kootenay Project” (see news release dated October 29,
2019) pursuant to which Wealth can acquire a 100% interest in the K ootenay Project by making
certain cash payments and share issuances to the vendors. The K ootenay Project is comprised of
two separate claim blocks totaling 7,864 hectares. The Kootenay Project claims lie within the
prospective Lardeau Group, a geol ogical division which hosts nu merous volcanogenic massive
sulphide deposits, including the past-producing Goldstream mine located north of Revelstoke, BC.
Between 1983 and 1996, the Goldstream mine produced 2.2 million tonnes of massive sulphides
averaging 4.49% Cu, 3.24% Zn and 20g/t Ag. Other VMS prospects in the Lardeau Group near
Goldstream include the Standard (Minfile 082M 166) and Montgome ry (Minfile 082M 85)
deposits.
Wealth believes the metavolcanic and metasedimentary units of t he southern Lardeau Group to
have excellent potential for hosting volcanogenic massive sulph ides (VMS) with significant
nickel-cobalt (± copper-zinc) content. Please see: https://wealthminerals.com/projects/kootenay/
for additional details.
The potential quantity and grade of the Kootenay Project is con ceptual in nature, that there has
been insufficient exploration to define a mineral resource and that it is uncertain if further
exploration will result in the target being delineated as a mineral resource.
Valsequillo Silver:
Wealth maintains this prospective, early-stage silver project in Mexico, although it is a legacy asset
owned prior to the Company’s shift to lithium. Pending available financing, the Company intends
to advance this project (see press release dated October 30, 2019).
Financing:
During the period of market focus on lithium projects, Wealth was able to reliably employ equity
financing to complete asset acq uisition, and fund development a nd administrative costs.
Anticipated financing at the end of 2018 did not happen due to market conditions (both the lithium
sector and capital markets in general), which started a corporate process of retrenchment and near-
exclusive focus on the Atacama Project. Market conditions throughout 2019 remained challenging
for equity financing, and the Company conducted several debt financings, with major participation
by management and directors. As such, financing conducted in 2019 was modest and did not give
the Company much future visibility for asset development. On Ma y 31, 2019 the Company had
CAD$130,917 in cash and since then (10 months) it has raised gross proceeds of CAD$2,683,808
(not including CAD$300,000 in flo w-through financing closed Nov ember 6, 2019 in regards to
the Kootenay Project). In that time period approximately CAD$1 million was spent on license
maintenance, including mandatory detailed survey reports, gover nment fees and legal fees to
process the necessary paperwork in order to keep the licenses i n good standing. Additionally, the
Company has spent approximately CAD$1.4 million in all administ rative and other expenses
(CAD$140,000/month on average), including regulatory fees, legal fees, audit, insurance, rent and
the costs of maintaining the team of lithium professionals that are necessary for Wealth’s future
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success. The Company notes that all of the executive staff has either delayed or deferred salary
during this difficult time, in the best interest of the Company.
Qualified Person:
John Drobe, P.Geo., Wealth’s Exploration Manager and a qualified person as defined by National
Instrument 43-101 Standards of Disclosure for Mineral Projects , has reviewed the scientific
information that forms the basis for this news release, and has approved the disclosure herein.
Mr. Drobe is not independent as he is a consultant and shareholder of Wealth and holds incentive
stock in the Company.
About Wealth Minerals Ltd.
Wealth is a mineral resource company with interests in Canada, Mexico and Chile. The Company’s
main focus is the acquisition and development of lithium projects in South America.
The Company opportunistically advances battery metal projects, namely copper and nickel, where
it has a peer advantage in project selection and initial evaluation.
Lithium market dynamics and a rapidly increasing metal price are the result of profound structural
issues with the industry meeting anticipated future demand. Wea lth is positioning itself to be a
major beneficiary of this future mismatch of supply and demand. In parallel with lithium market
dynamics, Wealth believes other battery metals will benefit from similar industry trends.
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.
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 van Alphen or Tim McCutcheon
Phone: 604-331-0096 Ext. 3886 or 604-638-3886
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 Refo rm Act of 1995. All statements, other than statements of historical fact,
included herein including, without limitation, anticipated exploration program results from exploration activities, the
Wealth Minerals Ltd. - 5 - April 1, 2020
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Company’s expectation that it will be able to enter into a definitive agreement that will govern the formation and
operation of the JV with ENAMI, the expected completion of preliminary field work at the Atacama Project, the
Company’s expectations regarding the closing of the Uranium One transaction, the Company’s expectation that
Wealth Copper will be able to complete the going-public transaction and the financing with Allante, the possible
acquisition of the Kootenay Project by the Company, the advancement of the Valsequillo Silver project by the
Company, the discovery and delineation of mineral deposits/resources/reserves, and the anticipated business plans
and timing of future activities of the Company, 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. Forward-
looking statements are typically identified by words such as: “believe”, “expect”, “anticipate”, “intend”, “estimate”,
“postulate” and similar expressions, or are those, which, by their nature, refer to future events. In making the forward-
looking statements in this news release, the Company ha s applied several material as sumptions, including without
limitation, that the Chilean government will continue to direct state companies to advance lithium assets (and that the
Company will be able to enter into a JV with ENAMI), that Wealth Copper will be able to raise sufficient funds
necessary to maintain the mining con cessions comprising the At acama Project, including funds necessary to pay
annual Chilean licensing fees for the concessions, that Wealth Copper will be able to complete the going-public
transaction, and that TSX Venture E xchange acceptance and the required corpor ate approval s of same will be
obtained, that there will be investor interest in future financings, 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 connection with the future development of the Company’s Chilean projects in a timely manner,
including the Atacama Project, the availability of financing on suitable terms for the development, construction and
continued operation of the Company’s projects and the Company’s ability to comply with environmental, health and
safety laws.
The Company cautions investors that any forward-looking statements by the Company are not guarantees of future
results or performance, and that actual results may differ materially from those in forward-looking statements as a
result of various factors, including, operating and technical difficulties in connection with mineral exploration and
development activities, actual results of exploration activities, including on the Atacama Project, the estimation or
realization of mineral reserves and mineral resources, the inability of the Company to obtain the necessary financing
required to conduct its business and affairs, as currently contemplated, including to maintain the mining concessions
comprising the Atacama Project, the fact that the Company’s interest in the Kootenay Project is an option only and
there is no guarantee that such interest, if earned, w ill be certain, the timing and amount of estimated future
production, the costs of production, ca pital expenditures, the costs and timing of the development of new deposits,
requirements for additional capital, future prices of lithium, changes in general economic conditions, changes in the
financial markets and in the demand and market price for commodities, lack of investor interest in future financings,
accidents, labour disputes and other risks of the mining industry, delays in obtaining governmental approvals, permits
or financing or in the completion of development or construction activities, changes in laws, regulations and policies
affecting mining operations, title dis putes, the inability of the Company to ob tain any necessary permits, consents,
approvals or authorizations, including by the TSX Venture Exchange, 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 Management Discussion and Analysis and filed with certain
securities commissions in Ca nada. 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.