May 2, 2022 / Vancouver, British Columbia / Angel Gold Corp. (“Angel Gold” or the “Company”) (TSX.V: ANG) is pleased to announce that it has entered into an agreement dated April 13, 2022 (the “Agreement”) with Eon Minerals Inc. (Eon) as optionor (a private Delaware company solely owned by Fernando E. Villarroel Alcoceer of Culter Bay, Florida), which currently holds an option to acquire a 100% interest from the current owner, Servicios y Explotaciones Mineras Cruz S.R.L. (the “Underlying Owner”), in the Amanecer Lithium Project, a mining project referenced as Expte. No. 17.745 located in Salta Province, Argentina (the “Amanecer Purchase Option”), subject to TSX Venture Exchange (the “Exchange”) approval and other conditions (the “Transaction”).
The project is comprised of 2,500 hectares, strategically located on the Pocitos salar, a well-known salar in the friendly mining province of Salta; Argentina. Infrastructure is excellent, the access route is in well conditions, and constantly maintained due to it being the backbone for the mining industry in this province, and also the natural gas pipeline is located 17 kilometers to the east of the salar. The InterAndes power corridor passes approximately 35 kilometers to the north. Rail service crosses the salar and joins with the port city of Antofagasta, Chile.
Pursuant to the Agreement, Eon wishes to assign the Amanecer Purchase Option to the Company in exchange for the following remuneration payable by the Company to Eon:
- US$25,000 due upon execution of the Agreement and upon acceptance of the TSX Venture Exchange (the “Exchange”);
- 500,000 common shares (the “Shares”) of the Company due upon completion of a National Instrument 43-101 Technical Report (“NI 43-101”) on the Amanecer Lithium Project, by and at the cost of the Company, and upon acceptance of the Exchange for filing of the Agreement;
- 1,000,000 Shares due upon completion of a pilot production of lithium carbonate from brine from the Amanecer Lithium Project;
- 1,000,000 Shares due upon completion of a Preliminary Economic Assessment of the Amanecer Lithium Project; and
- 1,000,000 Shares due upon completion of a feasibility study on the Amanecer Lithium Project, and confirmation of the financability of the Project to production.
Additionally, the Company has agreed to provide funding for an absorbent technology currently under development by Eon (the “Absorbent”), to produce lithium carbonate from the Amanecer Lithium Project. The Absorbent is at the investigation stage with a patent pending, and is in an aluminum-based absorbent that has the potential to recovery of a higher percentage of lithium than traditional evaporation technology, and in particular, among other details provided in the Agreement under the heading Technology Funding and Royalty, for the following:
- Eon will provide a technical sheet and components list for the development of a pilot plant using its Absorbent, and develop with the Issuer, a mutually agreed upon budget for the pilot plant construction and Absorbent test work, said budget to be funded by the Issuer;
- all Absorbent test work will be supervised by a Qualified Person (“QP”), as defined in NI 43-101, such person agreed upon by both the Issuer and Eon;
- all Absorbent test work will be verified by a third party as mutually agreed upon by the Issuer, Eon and the QP;
- the QP will be provided for the use of Eon at cost to the Issuer;
- at the successful conclusion of the testing of the Absorbent, the Company will have the exclusive right to utilize the Absorbent as part of a feasibility study on the Amanecer Lithium Project, and any other project it deems applicable, subject to subparagraph
- below; and
- Eon agrees to license to the Company, the exclusive use of the Absorbent and process for a royalty to Eon equal to 3% in kind of the value of any lithium production from any project the Absorbent is employed at, subject to Exchange approval.
Pursuant to the underlying agreement between Eon and the Underlying Owner, and subject to Exchange approval, the following remuneration will be paid to the Underlying Owner by the Company:
- upon the execution of the contract, USD$100,000 and the issuance of 100,000 Shares of the Company;
- on or before March 30, 2023, USD$150,000 cash and the issuance of 100,000 Shares of the Company; and
- on or before September 28, 2023, USD$100,000.
This Transaction is an arm’s length transaction and deemed to constitute a Fundamental Acquisition as defined in Policy 5.3(1) of the Exchange Policy and Procedures Manual (the “Policy”), and as such, will be subject to the terms and conditions acceptable to the Exchange for the completion of such transactions.
A finder’s fee equal to the maximum finder’s fee permitted under the Policy will be paid to parties involved in this Transaction.
The Company is currently preparing a merit NI 43-101 technical report. Full details on the property and acquisition will be provided in the immediate future.
ON BEHALF OF THE BOARD OF DIRECTORS
Christopher P. Cherry
Interim CEO and Interim CFO
Neither 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 adequacy or accuracy of this release.
This news release contains certain “forward- looking statements” within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward- looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements. The transaction described in this news release is subject to a variety of conditions and risks which include but are not limited to: regulatory approval, shareholder approval, market conditions, legal due diligence for claim validity, financing, political risk, security risks at the property locations and other risks. As such, the reader is cautioned that there can be no guarantee that this transaction will complete as described in this news release. We seek safe harbor.