Wealth Signs Letter Agreement to Acquire Interest in ‘Seven Salars’ Lithium Project in Chile
Suite 2300 – 1177 West Hastings Street, Vancouver, BC Canada V6E 2K3
Tel 604.331.0096 Fax 604.408.7499 www.wealthminerals.com
NR17-17 August 1, 2017
Wealth Signs Letter Agreement
to Acquire Interest in ‘Seven Salars’ Lithium Project in Chile
FOR IMMEDIATE RELEASE....Vancouver, British Columbia: Wealth Mi nerals Ltd. (the
“Company” or “Wealth”) - (TSXV: WML; OTCQB: WMLLF; SSE: WMLCL; Frankfurt: EJZN)
announces that it has executed a binding letter agreement (the “Letter Agreement”), whereby
Wealth or a Chilean subsidiary of Wealth has been granted the option and right to acquire 49% of
the issued and outstanding shares of San Antonio Sociedad Contr actual Minera (“San Antonio”)
and a 24.5% beneficial interest in certain exploration and expl oitation mining concessions that
comprise the Salares 7 Lithium project (the “Property” or the “ Seven Salars Project”). The
Property is a lithium brine asset portfolio currently owned 50% by Talison Lithium Ltd.
(“Talison”) and 50% by San Antonio and has a total area of 39,4 00 hectares located over seven
salars in Region II, northern Chile.
“The Seven Salars Project is one of the most important large-scale lithium brine projects in Chile.
The Property includes the Salar de La Isla, believed by many to be Chile’s second largest lithium
deposit and where 68 shallow drill hole samples returned an ave rage lithium grade of 863 mg/l,”
stated Hendrik Van Alphen, CEO, Wealth Minerals, Canada.
Talison acquired its 50% interest in the Seven Salars Project i n 2010 and completed drill testing
in 2011, but since then the project has not moved forward.
Marcelo Awad, Executive Director, Wealth Chile, “Wealth will br ing a new dynamic to the
ownership structure and the Company will be working diligently with the owners, allowing the
project to realize its real potential. As a Chilean mining exe cutive, I am pleased to help Chile
become the dominant global lithium producer in the new green economy and I believe Seven Salars
is one of the most geologically advanced new lithium projects in the country”
Figure 1: Post-Transaction Ownership Structure of the Seven Salars
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Overview of the Seven Salars Project
Several work programs have been completed on the Property (Figure 2). A regional geochemistry
study of salars in Regions I, II and III of northern Chile was undertaken by a combination of
government and non-government agencies between 1995 and 1999. The work covered, but was
not limited to, the Seven Salars Project. Surface water sampli ng of springs and lagoons was
completed and the results demonstrated widespread occurrences o f anomalous lithium and
potassium in surface lagoons and ponds, including a maximum value of 1,080 mg/l Li at Salar de
La Isla. Anomalous values were also r ecorded from a number of springs feeding these salars,
although results were generally below 50 mg/l.
Figure 2: Location of the Project. Seven Salars are labelled in red.
Confirmatory sampling was undertaken by Taigo Consultants Limited in 2009 as part of a review
of the Salares 7 Project. A total of 25 surface water samples were collected from lagoons along
the boundaries of, or springs flowing into, five of the seven s alars (comprising the Property).
Results in general confirmed the results of the earlier regiona l survey. Taiga recommended the
Wealth Minerals Ltd. - 3 - August 1, 2017
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use of geophysical surveys to locate high salinity sub-surface brines, followed by a drilling and
sampling program to define the lithium and potassium content of the brine deposits.
Between 2010 and 2011, Talison c ompleted Transient Electromagne tic (TEM) geophysical
surveys, surface brine sampling and exploration drilling on the Property and TEM geophysical
surveys were completed over five salars of the seven salars. T he TEM method can provide an
indication of basin geometry, c ontinuity of hydrogeological uni ts, geological structures and the
presence of brine versus fresh groundwater. Results identified a number of zones of high salinity
and it appears that recent sediments have overlapped onto the salars in places, with brine extends
beyond the current salar shore lines. The results of the TEM survey indicate that the depth of the
salars may exceed 200 m.
Approximately 200 surface brine samples were collected and analyzed in the Talison Greenbushes
Laboratory following routine QA/QC protocols. During sample co llection a range of physical
measurements were made on the brine including temperature, cond uctivity and pH. Analytical
results from Salar de La Isla indicate a wide range of lithium concentrations with a maximum value
of 1,080mg/l.
Thirty-four (34) drill holes totaling 562m were completed with a sonic drill in 2011. Twenty-
seven (27) holes were drilled in Salar de La Isla and 7 holes in Salar de Las Parinas. The holes
were continuously cored and 92 brine samples were collected. D rill hole locations were sited
around the margins of the two salars as shown in Figures 3.
Figure 3: Drilling Locations at Salar de La Isla (left) and Salar de Las Parinas (right) (source: Talison
2012).
The maximum drill depth in Salar de La Isla was 43.5 m and the average depth was 16 m.
Analyses of brine samples obtained during the drilling program indicate lithium concentrations
range from 220 mg/l to a maximum of 1,080mg/l; the average lithium concentration of 68 samples
was 863 mg/l. The average Mg/Li ratio was 6.6. Potassium conc entrations ranged from 1,960
mg/l to a maximum of 9,830 mg/l; the average potassium concentration was 7,979 mg/l.
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The maximum drill depth in Salar de Las Parinas was 33 m and the average depth was 22m.
Lithium concentrations ranged from 260 mg/l to a maximum of 480 mg/l, with an average of 331
mg/l. The average Mg/Li ratio was 11. Potassium concentration s ranged from 4,440 mg/l to a
maximum of 8,210 mg/l, with an average of 5,650 mg/l.
The Property also includes a land package within the Maricunga Salar, adjacent to concessions
in the salar currently under exploration by Lithium Power Inter national (ASX: LPI) and Bearing
Resources (TSXV: BRZ). Earlier in 2017, Chilean state mining company CODELCO announced
the formation of a lithium production subsidiary with the goal to advance development of the
Maricunga Salar.
The other salars in the Propert y have varying degrees of histor ical work completed, including
surface samples, water samples and geophysical surveys. The mos t significant of these is three
brine samples on Salar de Aquilar, which returned lithium concentrations between 257 mg/l and
337 mg/l, as well as potassium concentrations between 2,910mg/l and 3,990 mg/l.
Commercial Terms
Subject to acceptance of the Letter Agreement and the option gr ant transaction contemplated
thereby (the “Transaction”) by the TSX Venture Exchange (the “T SXV”) and the completion of
satisfactory due diligence by Wealth on the Property and other customary conditions precedent on
or before 120 days from the execu tion of the Letter Agreement, including a National Instrument
43-101 technical report on the Property, if required, the existing shareholders of San Antonio (the
“Selling Shareholders”) will sell and transfer to Wealth, at th e closing of the Transaction (the
“Closing”), shares representing 49 % of the issued and outstandi ng shares of San Antonio in
consideration for the payment by Wealth of USD 11,760,000 in cash and the issuance of 4,104,545
common shares of Wealth (the “Wealth Shares”) in accordance with the following schedule:
at Closing, an initial payment of USD 3,920,000 and the issuanc e of 4,104,545 Wealth
Shares;
a further payment of USD 3,920,000 on or before the day which is 4 months after Closing;
and
a further payment of USD 3,920,000 on or before the day which is 8 months after Closing.
Wealth will provide security for the payments due 4 months and 8 months after Closing by granting
to the Selling Shareholders a pledge over the San Antonio shares being purchased by Wealth. In
addition, the Letter Agreement pr ovides that the definitive pur chase and sale agreement will
contain a buy-back provision, whereby Wealth will grant to the Selling Shareholders the right to
re-acquire the San Antonio Shares purchased by Wealth at a pric e equivalent to 65% of the
purchase price paid therefor, in the event that any of the purc hase price installments are not fully
paid as scheduled and such lack of payment is not remedied within 20 business days of such breach.
The Wealth Shares issued in connection with the Transaction wil l be subject to an initial resale
restriction of 4 months and one day following the date of issue thereof. In addition, the Wealth
Shares will be subject to an additional lock-up period of 8 months from the date of issue. During
this lock-up period, the Selling Shareholders may only sell up to the aggregate amount of 250,000
Wealth Shares in any calendar month, and Wealth will have the f irst right of refusal to purchase
any Wealth Share proposed to be sold by the Selling Shareholders during this period.
Wealth Minerals Ltd. - 5 - August 1, 2017
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Wealth Lithium Interests in Chile
With this transaction, Wealth now has option interests in 16 sa la rs a n d th e p ro p e r tie s h a v e a n
aggregate area of 110,604 hectares (Table 1). The Company is now positioned as one of the largest
holders of lithium property interests in Chile.
Table 1: Wealth Minerals’ Lithium Brine Property Interests in Chile
Project Salar Option
Interest Hectares
Atacama Project At acama 100% 46,000
Trinity Project
Pujsa
100%
1,600
Calientes Norte 2,000
Quisquiro 2,400
Laguna Verde Project Laguna Verde 100% 8,700
Five Salars Project
Ascotan
100%
1,300
Piedra Parada 1,900
Lejia 400
Siglia 1,600
Huasco 5,300
Seven Salars Project
Isla
24.5%
16,500
Agua Amerga 3,100
Parinas 5,400
Grande 4,000
Aguilar 8,800
Piedra Parada 1,500
Maricunga 104
About Talison Lithium
Talison is a leading global producer of lithium with projects i n Western Australia and Chile.
Production from its Greenbushes Project in Australia accounts f or approximately 40% of global
production. Talison is owned by Tianqi Lithium (51%) and by Al bemarle Corporation (49%).
Talison’s operating partner is Albemarle who is also one of only two current lithium producers in
Chile and who is producing from the Atacama Salar, where Wealth has a significant land position.
Talison acquired its 50% stake in the Seven Salars Property via the acquisition of TSXV listed
Salares Lithium Ltd. in 2010.
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About Albemarle Corporation
Albemarle Corporation (NYSE: ALB) is a global specialty chemica ls company with leading
positions in lithium, bromine, refining catalysts and applied s urface treatments. Albemarle’s
market capitalization is $13 billion and the company employs ap proximately 5,000 people and
serves customers in approximately 100 countries. Talison’s Gre enbushes Project in Australia is
operated by Albemarle who also operate in the Atacama Salar, pr oducing lithium carbonate from
a location 40km south of Wealth’s Atacama Project.
About Tianqui Lithium
Tianqi Lithium is a leading global supplier of lithium products , with major businesses including
lithium resource development and exploitation, downstream production processing and trade for a
diverse range of high quality lithium products including minera l concentrates. The company has
established global presences in China, Hong Kong, the UK, Austr alia and Chile, allowing the
company to service customers across Europe, Asia, the Americas and Oceania.
About San Antonio
San Antonio is the underlying owner from whom Wealth will acquire a 24.5% beneficial interest
in the Property.
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 of lithium projects in South America. To date, the
Company has positioned itself to develop the Aguas Calientes No rte, Pujsa and Quisquiro Salars
in Chile (the Trinity Project), as well as to work alongside ex isting producers in the prolific
Atacama Salar, in addition to the Laguna Verde lithium project acquisition. The Company has
also positioned itself to play a role in asset consolidation in Chile with the Five Salars Project.
The Company continues to pursue new acquisitions in the region, the latest of which is the Seven
Salars Project and is eager to move the projects forward into production. Lithium market dynamics
and a rapidly increasing metal price are the result of profound structural issues with the industry
meeting anticipated future demand. Wealth is positioning itsel f 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.
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
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.
Wealth Minerals Ltd. - 7 - August 1, 2017
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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 regarding the anticipated content, commencement, timing
and cost of exploration programs in respect of the Seven Salars Project and otherwise, anticipated results from the
exploration activities, the discovery and delineation of mi neral deposits/resources/reserves on the Seven Salars
Project, the anticipated business plans and timing of future activities of the Company and the Company’s expectation
that it will be able to enter into agreements to acquire interests in additional mineral properties, 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”, “inten d”, “estimate”, “postulate” and simila r expressions, or are those, which,
by their nature, refer to future events . 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, issues raised during the Company’s due
diligence on the Seven Salars Project, operating and technical difficulties in connection with mineral exploration and
development activities, actual results of exploration activities, the estimation or realization of mineral reserves and
mineral resources, the timing and amount of estimated future production, the costs of production, capital expenditures,
the costs and timing of the development of new deposits, requirements for additional capital, future prices of lithium
and precious metals, changes in general economic conditions, changes in the financial markets and in the demand
and market price for commodities, 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 disputes, the inability of the Company to obtain any
necessary permits, consents or authorizations required, including TSXV acceptance of any current or future property
acquisitions or financings and other planned activities, 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’s Discussion and Analysis and filed with certain securities
commissions in Canada. All of the Company’s Cana dian 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.