July 15, 2016 – Vancouver, British Columbia: Wildcat Exploration Ltd, “the Company”, (TSX-V: WEL) is pleased to announce that it has entered into an Option Agreement with Nevada Energy Metals Inc. to acquire a 100% interest, subject to a 3% Net Smelter Royalty, in 348 mineral claims located in Dixie Valley, Churchill County, Nevada. The Option Agreement is “non-arms’ length” and so constitutes a related party transaction, as one of the Company’s Directors, Rick Wilson, is also the President and Chief Executive Officer of Nevada Energy Metals Inc., and is subject to TSX Venture Exchange (the “Exchange”) approval.
The DVA 1 to 348 placer claims, having an area of approximately 2,817 hectares/6,960 acres, covers a significant portion of the Humboldt Salt Marsh playa. Of the seven characteristics favorable for the formation of a Lithium brine deposit, as outlined in the USGS deposit model, all seven are found in Dixie Valley. The Lithium deposit model for Dixie Valley is a Clayton Valley style brine deposit.
Pursuant to the terms of the Option Agreement, the Company has 36 months within which to exercise the option as follows:
- USD $20,000 non-refundable deposit on signing;
- USD$ 180,000 payable and 2,000,000 common shares issuable upon Exchange approval;
- 2,000,000 common shares issuable on the first anniversary date;
- 2,000,000 common shares issuable on the second anniversary date;
- USD$ 1,250,000 in eligible exploration expenditures on or before the third anniversary date of the Option Agreement
Dixie Valley Overview:
Dixie Valley is located in west central Nevada, about 160 km east northeast of Reno. The entire basin is about 98 km long and up to 16 km wide. Humboldt Salt Marsh occupies the central part of the playa and is about 10 km north-south and 6 km east-west.
Dixie Valley is home to a large and long-lived geothermal system that is still active. The Caithness Dixie Valley geothermal power plant is producing about 64 megawatts of electricity making it the largest geothermal power plant in Nevada. The active geothermal system extends about 30 km roughly north – south along the entire west side of the valley. The heat source appears to be simple very deep circulation into the crust and is not related to igneous activity.
Very little exploration work has been directed at Lithium in this area. Geothermal water in the basin contains up to 4.89 ppm Lithium and stream sediment samples from the adjacent Stillwater range show values to 80 ppm Lithium. Geologically, recent volcanic ash from the Long Valley Caldera (Bishop Tuff) and Mono craters are expected to be found within catchment area of the basin and within the basin fill sediments. One major productive horizon in the Clayton Valley brine field is thought to be Bishop Tuff deposited and preserved in the basin (Zampirro, 2004).
Dixie Valley is a closed fault-bounded basin having the lowest elevation point (1031 m, 3383 ft.) in the Northern Great Basin as measured on the Humboldt Salt Marsh playa. Given the valley has been a closed basin for at least 500,000 years and probably much, much longer, plenty of time has elapsed for evaporative concentration of Lithium bearing geothermal and surface water. The valley appears to be about 2,000 meters deep, primarily filled with poorly sorted coarse conglomerate, gravel, sand and silt with volcanic rocks, and tuff beds, and finer sediments in the lower third of the section (Blackwell et al, 2014).
The conceptual deposit model is as the basin went through multiple wet and dry periods, Lithium dissolved by deep circulating geothermal fluids or leached from local rock units by surface and near surface water, seeped into the basin where it was concentrated by evaporation. Heavier brines sink into the deeper levels of the basin or flow downward along tilted permeable beds, potentially forming subsurface pools of Lithium rich fluids. The process can be likened to an inverted oil field, with the target material being descending fluids caught in gravity traps instead of ascending fluids caught in the tops of structures. This model is somewhat akin to placer gold deposits wherein large areas of very low grade sources are concentrated into economic grades.
The contents of this news release has been approved by Alan J. Morris CPG who serves as the project geologist and Qualified Person on the Dixie Valley Project.
In addition, the Company is also announcing that it intends to complete a private placement for gross proceeds of up to $1,650,000, with a minimum gross proceeds of to $1,100,000 (the “Financing”), which is expected to consist of units (maximum of 30 million units, minimum of 20 million units) with each unit comprised of one common share and one common share purchase warrant at a price of $0.055 per unit, or such other price per unit determined by management in compliance with Exchange pricing regulations. Each share purchase warrant will be exercisable to acquire one common share of the Company at a price of $0.055 per share for a period of twenty-four months following the closing of the Financing. All securities issued pursuant to the Financing will be subject to a hold period as required under applicable securities legislation.
Net proceeds from the Financing will be used for the exploration of the Humboldt Salt Marsh Project and general working capital. Closing of the Financing remains subject to Exchange approval. The Company does not expect to provide any offering materials to subscribers in connection with the Financing. For more information concerning the Company, please refer to the Company’s profile on the SEDAR website at www.sedar.com. As at the date hereof, there is no material fact or material change in respect of the Company that has not been generally disclosed.
In certain instances and subject to Exchange approval, the Company may pay finder’s fees to eligible persons (“Finders”) on the Financing and in regards to the Option Agreement with Nevada Energy Metals, consisting of cash and or common shares.
About Wildcat Exploration Ltd: http://www.wildcat.ca
Wildcat Exploration Ltd is an exploration stage company. The Company is engaged in the acquisition and exploration of resource properties. The Company currently holds interests in resource properties in the province of Manitoba.
On Behalf of the Board of Directors
Chairman & CEO
Neither the 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 contents of this news release.
Disclaimer for Forward-Looking Information:
This news release may contain forward-looking statements which include, but are not limited to, comments that involve future events and conditions such as Exchange approval of the Option Agreement and the Financing and the Company’s ability to exercise the Option or close the Financing, which are subject to various risks and uncertainties. Except for statements of historical facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt and security of mineral property titles, availability of funds, and others are forward-looking. Forward-looking statements are not guarantees of future performance and actual results may vary materially from those statements. Availability of financing, and general business conditions are all factors that could cause actual results to vary materially from forward-looking statements.