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Wealth options Meductic properties in New BrunswickWEALTH ANNOUNCES OPTION FOR 100% OF MEDUCTIC VANADIUM PROPERTY CANCELS INCENTIVE STOCK OPTIONS
FOR IMMEDIATE RELEASE….Vancouver, British Columbia: Wealth Minerals Ltd. (the “Company” or “Wealth”) – (TSXV: WML; OTCQX: WMLLF; SSE: WMLCL; Frankfurt: EJZN), announces that it has signed an option agreement giving it the right (the “Option”) to acquire a 100% interest (subject to a 2% NSR royalty) in the Meductic vanadium properties (the “Property”) located approximately 79 km west northwest of Fredericton, New Brunswick, Canada.
Henk Van Alphen, Wealth’s CEO, commented “This acquisition was made to give Wealth shareholders increased exposure to metals tied to new battery technologies that are driving the global change in energy use. Lithium and vanadium are key metal inputs with favorable market dynamics in terms of demand and limited supply.”
Stefan Schauss, a Director of Wealth and a vanadium battery expert, stated “Vanadium is a new battery metal that is enjoying increased demand due to the growing popularity of flow batteries. Flow batteries are used in applications where long duration energy storage is prioritized over other characteristics of rechargeable batteries. Vanadium has historically only been used in the steel industry and new demand from battery manufacturers is expanding the demand landscape.”
Background
The Property, which is comprised of the Wickham 1, Bright Eye Brook 1, 2 and 3, and Meductic 3, 4 and 5 mineral tenures consists of a total area of approximately 1,749 hectares (see Figure 1 and 2). The Property covers known areas of highly anomalous vanadium in outcrop. In addition, a 2018 sample results program confirmed that there is a vanadium enriched section within the Property. Sampling at both the Meductic and Bright Eye Brook mineral tenures area returned vanadium pentoxide values > 0.10 % over lengths of between 30 and 64 meters.
Figure 1: Location of claims in New Brunswick, Canada. Red dot represents region location of the Property Figure 2: Location Map of claims comprising the Property Acquisition Terms
Wealth and the Property owners (the “Owners”) have entered into a formal option agreement dated November 28, 2018 (the “Option Agreement”). Under the terms of the Option Agreement, Wealth made a $20,000 cash payment upon signing and may exercise the Option by paying an aggregate of $720,000 in cash, and issuing an aggregate of 2.5 million common shares of Wealth, to the Owners, in accordance with the following schedule:
Pursuant to the provisions of the Option Agreement, Wealth has agreed to pay the Owners a 2% NSR royalty on all mineral commodities sold from the claims comprising the Property. Wealth has the right to purchase from the Owners, at any time, half of the NSR royalty (1% of the 2%) for a lump sum payment of $1,000,000. Additionally, from the fifth anniversary of the signing of the Option Agreement until production, the Owners shall receive an advance royalty of $30,000 per year, which will be credited towards NSR royalty payments following the commencement of production on the Property. Option Cancellation
Wealth also announces that, pursuant to the Company’s 2004 Incentive Stock Option Plan, the Company has cancelled an aggregate of 3,550,000 incentive stock options which were previously granted to directors, officers, employees and consultants. Qualified Person
John Drobe, P.Geo., a qualified person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects, has reviewed the scientific and technical information that forms the basis for this news release and has approved the disclosure herein. Mr. Drobe is not independent of the Company as he is a consultant and shareholder of Wealth, and holds incentive stock options in the Company. About Wealth Minerals Ltd.
Wealth is a mineral resource company with interests in Canada, Mexico, Peru and Chile. The Company’s main focus is the acquisition and development of lithium projects in South America. To date, the Company has positioned itself to develop the Quisquiro Salar in Chile (the Trinity Project), as well as to work alongside existing producers in the prolific Atacama Salar, where the Company has a substantial licenses package. The Company has also positioned itself to play a role in asset consolidation in Chile with various lithium properties throughout the country.
Lithium market dynamics and a rapidly increasing metal price are the result of profound structural issues with the industry meeting anticipated future demand. Wealth is positioning itself to be a major beneficiary of this future mismatch of supply and demand. The Company also maintains and continues to evaluate a portfolio of precious and base metal exploration-stage projects.
For further details on the Company readers are referred to the Company’s website (www.wealthminerals.com) and its Canadian regulatory filings on SEDAR at www.sedar.com. On Behalf of the Board of Directors of WEALTH MINERALS LTD. “Hendrik van Alphen” Hendrik van Alphen Chief Executive Officer For further information, please contact: Marla Ritchie Phone: 604-331-0096 Ext. 3886 or 604-638-3886 E-mail: info@wealthminerals.com |
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