Green Energy Resources Inc. holds lithium brine/clay claims at Clayton Valley, Nevada, and the Hector Lode claims in San Bernardino county, California.
Drilling to begin in December at Clayton Valley
Upon exercising of the initial option payment by Alba, Green Energy Resources will immediately begin a 55-hole drill program on the Clayton Valley North project. This program is designed to demonstrate the existence of a valuable lithium deposit within the property's prospect area. Permits and essential preparation have been completed for a target encompassing nearly four square miles.
Results from the phase 1 drill program will be incorporated into a resource estimate. A National Instrument 43-101 technical report was completed on the 17,738-acre (7,178-hectare) Clayton Valley property in October of 2016.
Located near Nevada lithium producer
The perimeter of the Clayton Valley claims is located within one mile (1.6 kilometres) of Albemarle Corp.'s lithium brine operations. Lithium is produced at Albemarle's plant from deep wells that pump brines from the basin beneath the Clayton Valley playa. The plant is the only lithium producer in the United States and has been producing lithium at this location continuously since 1967.
"This joint venture and its key properties establish Alba as a serious and major player in the lithium exploration sector," said Alba chairman Sandy MacDougall.
"Not only are we launching a major drill program in Nevada's prime lithium district, we are also preparing to explore our holdings in Salta province, Argentina, adjacent to world-class lithium projects held by Lithium Americas and Orocobre in one of the world's leading lithium-producing regions."
Hector Lode lithium project
The joint venture also includes Green Energy's 100-per-cent-owned Hector Lode property encompassing 116 lithium mineral claims (2,320 acres) in San Bernardino county, California, where exploration has confirmed the presence of lithium in hectorite clays. Material is currently being mined on adjacent ground as bentonite/hectorite clays. A phase 1 core drilling program is now under consideration for the property.
The option to purchase includes the following terms subject to TSX Venture Exchange and regulatory approval:
- First payment of $255,000 as follows, $127,500 on or before Dec. 5, 2016, and a second payment of $127,500 on completion of the drilling program in the Clayton Valley to earn a 25-per-cent direct interest in Green Energy Inc.;
- Second payment of $200,000 due on or before March 30, 2017, or at such time when an NI 43-101 report on the drilling results is completed to earn an additional 5 per cent;
- Third payment of $200,000 due on or before May 30, 2017, to earn an additional 5 per cent;
- Fourth payment of $289,500 due on Aug. 25, 2017, to cover Nevada and California annual maintenance fees to earn an additional 10 per cent;
- Fifth payment of $155,500 due on or before Nov. 30, 2017, to earn an additional 5 per cent;
- On completion of the fifth payment an issuance of common shares of Alba to Noram in an amount to be determined.
"We are pleased to have entered into this agreement with Alba, which is another significant step in establishing Noram's role in the green energy revolution through the development of lithium. The exploration and management team that has been assembled is world class, and we are looking forward to establishing the 2016/2017 work programs on our lithium and graphite properties,” said Mark Ireton, president of Noram.
Alba private placement to raise C$750,000
In conjunction with the LOI, Alba announces a private placement consisting of 7.5 million units priced at 10 cents per unit to raise gross proceeds of C$750,000. The units include a warrant to purchase one common share of Alba at 15 cents for a period of two years from the date of issue.
Alba grants stock options
Alba also announces it is granting 1.8 million incentive stock options under its stock option plan for directors, officers, employees and consultants. The stock options are exercisable at a price of 12.5 cents per share.
Alba shares closed up 2.5% at 34p in London on Monday.