September 12, 2016 / Vancouver, BC / NRG Metals Inc. (the “Company”) (TSX-V: NGZ) (OTC Pink: GPOFF) (Frankfurt: OGPN) is pleased to announce it has entered into a Letter of Intent for the 100% acquisition of the La Borita property, located in the western center of the Province of Catamarca in the Department of Antofagasta, within the “Lithium Triangle.” The project is comprised of 3,000 hectares and is situated 15 kilometers east ofthe Salar de Antofalla, a lithium potassium deposit.
The region was explored in 2013 by Minera Mariana Argentina S.A., as subsidiary of Mariana Resources Ltd., for base metals. In support of the base metals exploration program, The company drilled five holes totaling 1785 meters to test the area for water in the acquifer on the La Borita property. The Company has assay results for five holes, and one re-sample as a monitor. Chemical analysis on samples was performed by Alex Stewart Laboratory in Mendoza, Argentina. The historical values for hole LB001 was 228 miligrams per liter (mg/l) lithium, 844 mg/l magnesium, and 2222 mg/l potassium. Hole LB002 returned 226 mg/l lithium, 856 mg/l magnesium and 2248 mg/l potassium. Hole LBDDH005, a 650 meter deep well, was sampled twice from November 2011, and then December 2012. Ltihium values were 228 mg/l in 2011 and 242 mg/l in 2012. Magnesium was 844 mg/l for 2011 and 854 mg/l for 2012, and potassium was 2222 mg/l in 2011 and 2215 mg/l in 2012. Holes LB003 and LB004 returned no anomalous lithium values. CAUTION: The historical assay results presented above is relevant to the further exploration of the project which, the Company intends to undertake in the future. A qualified person has not done sufficient work to verify the results; therefore, they should not be relied upon and are presented for informational purposes only.
The project history confirms the potential of the area to potentially host a lithium target with a favorable chemical profile. The low magnesium to lithium ratio make the project of particular interest to the Company. During the 90-day due diligence period, the Company will conduct a legal and technical review of the area which will include a grid sample program to determine the lithium potential. Access is from the city of Catamarca by road, and then by an 8 kilometer dirt road to the property.
Upon completion of successful due diligence, the acquisition terms are payment of $ US 35,000 upon signing a formal agreement, at 12 months from that date a payment of $ US 100,000, at 24 months a payment of $ US 150,000, at 36 months a payment of $ US 200,000, and at 48 months, a final payment of $ 250,000. The property owner will maintain a 1 % Net Smelter Royalty on lithium and a 3% Net Smelter Royalty on any other valuable minerals defined and produced.
Adrian F.C. Hobkirk, President and C.E.O. of NRG Metals said: “We are excited about this new lithium acquisition in Argentina, especially given the indications of lithium in an area previously not known for its lithium content. Of special importance is the fact that the previously drilled water wells were not designed and cased to test for lithium brines at depth. Further exploration drilling and pump tests designed to test for lithium will reveal the true hidden potential of the La Borita area.”
The Company is now mobilizing an exploration crew for a property site visit to determine the first phase of exploration. Additional properties are currently under negotiation. Further news on management appointments will shortly follow this news release.
On Behalf of the Board of Directors of NRG Metals Inc.,
Adrian F.C. Hobkirk, President and C.E.O.
Contact : email@example.com
Ph: 714-316-3272 or 604-682-2928
The technical information contained in this news release has been reviewed by Afzaal Pirzada, P.Geo., who is a member of the Association of Professional Engineers and Geoscientists of British Columbia with license # 28657. Mr. Pirzada has prepared and supervised the preparation of this news release and approves the scientific and technical content. Mr. Pirzada is a Qualified Person as defined in National Instrument 43-101.
The TSX Venture Exchange has not reviewed the content of this news release and therefore does not accept responsibility or liability for the adequacy or accuracy of the contents of this news release.This news release contains certain “forward- looking statements” within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward- looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward looking statements. The reader is cautioned not to place undue reliance on forward-looking statements. The transaction described in this news release is subject to a variety of conditions and risks which include but are not limited to: regulatory approval, shareholder approval, market conditions, legal due diligence for claim validity, financing, political risk, security risks at the property locations and other risks. As such, the reader is cautioned that there can be no guarantee that this transaction will complete as described in this news release. We seek safe harbour.