Western Lithium Completes Purchase of Royalties and Mineral Property Titles From Western Uranium
March 11 2011 - 10:42AM
Marketwired
Western Lithium USA Corporation ("Western Lithium" or "WLC") (TSX:
WLC)(OTCQX: WLCDF) and Western Uranium Corporation ("Western
Uranium" or "WUC") (TSX VENTURE: WUC)(PINK SHEETS: WURNF) are
pleased to announce that they have completed the previously
announced transaction for the sale, by WUC to WLC, of the royalties
and titles constituting substantially all of the Kings Valley
mineral property holdings in Nevada for Cdn$6.85 million, paid
through the issue to WUC of 5,855,000 WLC common shares.
"This transaction gives Western Lithium a 100% interest in the
Kings Valley lithium property," said Jay Chmelauskas, Western
Lithium's President. "It provides us with a clean corporate
structure to take to potential strategic and financing partners as
we move forward in developing our Nevada lithium property."
The transaction results in the transfer of all of the lithium
properties out of WUC's portfolio and eliminates the existing lease
and royalty arrangements between the two companies on the Kings
Valley property, including a Net Smelter Return of 1.5% and Net
Profits Royalty of 3.5% on any lithium and related byproducts.
Excluding the Albisu gold exploration target and a royalty granted
to Cameco Global Exploration II Ltd. solely in respect of uranium,
WLC now has full control of the Kings Valley property claim.
As part of the transaction, WUC has agreed to dispose of its
common shares in the capital of WLC, in due course, through one or
more block trades or off-market transactions until it holds less
than 10% of the outstanding WLC shares. Until it completes such
disposition, WUC agrees to refrain from voting against management
nominees to the WLC board of directors and to not vote against any
arm's length third party transaction proposed by WLC's
management.
Western Lithium is developing the Kings Valley, Nevada lithium
deposit into potentially one of the world's largest(1) strategic,
scalable and reliable sources of high quality lithium carbonate.
The Company is positioning itself as a major U.S.-based supplier to
support the rising global demand for lithium carbonate that is
expected from the increased use of hybrid/electric vehicles.
Western Uranium Corporation is a mineral exploration company
with properties in Argentina, Nevada, and New Mexico and an earn-in
agreement with Renaissance Gold Inc. (formerly AuEx Ventures, Inc.)
for the Baza gold-copper project in Spain. The Company has its head
office in Vancouver, Canada.
1. Western Lithium has completed National Instrument 43-101 resource
estimates on two portions of the property, one of which is envisioned
for the initial stage of mine development. These resources cover part of
the mineralization from a historical estimate of 11 million tonnes of
lithium carbonate equivalent (LCE) prepared by Chevron Resources Corp.
in the 1980s that encompasses all of the King's Valley lithium lens
deposits identified to date, and ranks in size behind deposits in
Bolivia (47 million tonnes LCE), Chile (37 million tonnes LCE), North
Carolina (14 million tonnes LCE) and the DRC (12 million tonnes LCE).
Source: R. Keith Evans, 2010; Roskill Information Services Ltd., 2009;
and company disclosures. A qualified person has not done sufficient work
to classify the historical estimate as current mineral resources under
National Instrument 43-101, the Company is not treating the historical
estimate as current mineral resources and the historical estimate should
not be relied upon.
Forward Looking Statements
Certain of the statements made and information contained herein
is "forward-looking information" within the meaning of the Ontario
Securities Act, including the proposed disposition of WLC shares by
WUC. Forward-looking information is subject to a variety of risks
and uncertainties which could cause actual events or results to
differ from those reflected in the forward-looking information,
including obtaining regulatory approval, and other risks and
uncertainties, including those described in each management
discussion and analysis. Forward-looking information is in addition
based on various assumptions including, without limitation, the
expectations and beliefs of management. Should one or more of these
risks and uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described in the forward-looking information.
Accordingly, readers are advised not to place undue reliance on
forward-looking information. The companies do not have a policy of
updating forward looking information, except to the extent required
by applicable securities laws.
The TSX Venture Exchange has neither approved nor disapproved of
the contents of this press release. Neither the 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 press
release.
Contacts: Western Lithium USA Corporation Jay Chmelauskas
President +1-604-681-3071 info@westernlithium.com
www.westernlithium.com Western Uranium Corporation Richard Roy
Investor Relations +1-604-628-7649 info@westernuranium.com
www.westernuraniumcorp.com
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