New World finalises joint venture agreement for Bolivian lithium project

first_imgNew World Resource Corp, a Canadian based mining exploration company, has finalised the letter of intent with Gonzalo Miranda Salles for the joint venture (JV) agreement on the Pastos Grande lithium project. The JV has a term of 20 years and the initial participation interests are 99% for the company’s subsidiary, New World Bolivia and 1% for Gonzalo Miranda Salles. A $10,000 payment due upon signing of the JV and the Patentes Mineras payment to the government to keep the concession in good standing have both been paid. John Lando, President New World Resource Corp: “We are extremely pleased to have secured our first lithium brine project in Bolivia. Our due diligence relating to this project is very encouraging. The company continues to assess other similar lithium brine opportunities within the region.” Upon formalising the joint venture the concession was reviewed and the project concession size has been adjusted. The project area covers some 60 km2 and is located in the Sud Lipez Province, Department of Potosi within the Bolivian Altiplano. The Altiplano is host to many alkaline and saline lakes and salars including the Salar de Uyuni which hosts one of the world’s largest known lithium reserves. Pastos Grande is located some 113 km south southwest from Salar de Uyuni, within the same geological and geographical setting.Pastos Grande is a hyper saline lake/salar basin that is fed by several intermittent rivers and thermal springs which discharge into the salar. The Pastos Grandes concession is elliptical in shape, with the major axis trending northwest-southeast. The salar contains a thick sequence of sediments with a shallow water table. Chemical analysis indicates that Pastos Grandes has an alkaline make-up (sodium-calcium-sulphate-chlorine) with high concentrations of lithium, potassium and boron. Minerals identified in the crust include halite, gypsum, clay, ulexite and calcite.The size of major brine deposits worldwide generally range from 200 to 1,300 Mt, and the grade ranges from 0.015 to 0.125% Li. The historical sampling from Pastos Grandes returned 0.17% Li. Virtually all of the world’s brine produced lithium comes from Chile and Argentina within the Altiplano basin.To keep the JV in good standing New World Bolivia must make the following payments:$10,000 on signing of the JV (paid)$1,000/month for the first 12 months$2,000/month for the next 12 months$150,000 on the third anniversary of the JV$100,000 on the fourth anniversary of the JV$150,000 on the fifth anniversary of the JV.At any time during the term of the JV, New World Bolivia has the right to pay to the Gonzalo Miranda Salles $250,000 to acquire the profits generated by the 1% interest of Gonzalo Miranda Salles. New World Bolivia will be the operator of the JV and the board will be under New World Bolivia’s control.last_img read more

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