ALSET ENERGY SIGNS LETTER OF INTENT TO ACQUIRE UP TO 10 MINERAL CONCESSIONS CONTAINING UP TO 16 LITHIUM SALARS IN MEXICO
Alset Energy Corp. (ION.V) has entered into a binding letter of intent with Litio Mex SA de CV of Zacatecas, Mexico, for the right to earn a 100-per-cent interest in 10 mineral concessions covering 16 known lithium-, potassium- and boron-rich salars, and one mineral concession containing a gypsum zone located in Zacatecas and San Luis Potosi, Mexico. Alset will have the right to a 30-day due diligence period, which upon completion, can acquire any or all of the concessions by paying any outstanding taxes owed on any or all mineral concessions that Alset would like to acquire, and by paying to the optionor $210,000 (U.S.) on the following schedule:
- $20,000 (U.S.) on the company providing the notice of satisfactory of the due diligence;
- $25,000 (U.S.) on first anniversary of signing the definitive agreement;
- $30,000 (U.S.) on second anniversary of signing the definitive agreement;
- $35,000 (U.S.) on third anniversary of signing the definitive agreement;
- $40,000 (U.S.) on fourth anniversary of signing the definitive agreement;
- $60,000 (U.S.) on fifth anniversary of signing the definitive agreement.
The property will be subject to a 2.25-per-cent net smelter return in favour of the optionor, of which 1 per cent can be purchased by the company for $250,000 (U.S.). Alset has agreed to pay a finder’s fee to a third party of 10 per cent based on the value of the option and will disclose further details regarding the project after it has completed its due diligence.
All of the above transactions are subject to TSX Venture Exchange and regulatory approvals.