ZADAR ENTERS INTO LITHIUM PROJECT OPTION AGREEMENT
Zadar Ventures Ltd. (ZAD.V) has entered into an option agreement with GeoXplor Corp. of Arizona to acquire a 100-per-cent interest in two prospective lithium projects near Silver Peak, Nev., in North America’s only producing lithium brine basin, the Clayton Valley.
In order to exercise the option to earn 100% in the 42 unpatented placer claims that comprise the two lithium projects, Zadar will issue 5,000,000 of its common shares and pay US$450,000 in cash payments to GeoXplor as follows:
— US$50,000 on the effective date (paid); — 1,000,000 common shares on TSX.V approval; — US$50,000 on or before March 25, 2016; — 1,000,000 common shares on each of the first four anniversaries of the effective date; — US$75,000 on each of the first and second anniversaries of the effective date; and — US$100,000 on each of the third and fourth anniversaries of the effective date.
Zadar will be required to make exploration expenditures of US$200,000 in year one, a further US$300,000 in year two, a further US$1,000,000 in year three and a further US$1,000,000 in year four. On the fifth anniversary of the Effective Date, and annually thereafter, Zadar shall pay minimum advanced annual royalties payments of US$100,000.
Upon completion of an inferred resource calculation that confirms either of the properties having a minimum presence of 100,000 tons lithium carbonate equivalent grading at no lower than 28 parts per million lithium grade average, the Company shall pay GeoXplor US$1,000,000 in cash or Zadar Shares, or a combination thereof at Zadar’s election.
Upon Completion of an Economic Study on either of the properties on or before the 10th anniversary of the effective date, Zadar shall pay to GeoXplor US$2,000,000 in cash or Zadar Shares, or a combination thereof at GeoXplor’s election.
GeoXplor will maintain 3% gross value Royalty return of which 2% can be purchased by Zadar at any time for US$5,000,000.
GeoXplor will act as operator of the projects for the life of the agreement. Zadar is excited to work with GeoXplor’s exploration team, which has extensive exploration experience of lithium brines in the Clayton Valley area.
About the WSP and CR Lithium Projects
The WSP project is located immediately adjacent to the Rockwood/Albamarle claims in North Clayton Valley and covers approximately 425 hectares, including a gravity low anomaly interpreted to represent a basinal low permissive to host brines containing elevated concentrations of lithium. This project’s merit is supported by a USGS test hole (Drillhole CV-2) located approximately 600m from the eastern claim boundary that reported a 55ppm Li maximum content from analyzed water samples.
The CR project lies approximately 18 kilometres southeast of Silver Peak, Nevada and covers over 330 hectares of an isolated and un-drilled basin which has the potential to host a similar lithium brine environment by virtue of its proximal location to the possible source of the lithium within the Clayton Valley system. This later project has also been the subject of a suite of initial gravity surveys and shows a basinal feature, which if closed, could host brines with elevated lithium concentrations.