Wealth Minerals Acquires the Pabellon Lithium Project
Wealth Minerals (WMLLF) has signed a non-binding LOI to acquire a 100% royalty-free interest in the Pabellón Lithium Project, consisting of 26 mineral exploration licenses covering 7,600 hectares in northern Chile. The project is located near the Chile-Bolivia border and includes access to the Cerro Pabellón geothermal power plant, operated by ENEL.
The geothermal fluid samples from the power plant contain lithium content ranging from 31 to 75 mg/L, with a flow rate of 1,500 t/hour, potentially yielding 2,000-5,000 t/annually of Lithium Carbonate Equivalent. Wealth plans to install a Direct Lithium Extraction unit at the power plant to recover lithium from the geothermal fluid.
The acquisition terms involve issuing 6 million Wealth common shares to the vendor. The company plans to integrate Pabellón into its existing Kuska Project joint venture, potentially creating synergies in power supply and processing operations.
Wealth Minerals (WMLLF) ha firmato una lettera di intenti non vincolante per acquisire un interesse del 100% senza diritti d'autore nel Progetto Litio Pabellón, composto da 26 licenze di esplorazione mineraria che coprono 7.600 ettari nel nord del Cile. Il progetto si trova vicino al confine tra Cile e Bolivia e include l'accesso alla centrale geotermica Cerro Pabellón, gestita da ENEL.
I campioni di fluido geotermico della centrale contengono una concentrazione di litio che varia da 31 a 75 mg/L, con una portata di 1.500 t/ora, potenzialmente in grado di produrre da 2.000 a 5.000 t all'anno di Carbonato di Litio Equivalente. Wealth prevede di installare un'unità di Estrazione Diretta di Litio presso la centrale per recuperare litio dal fluido geotermico.
I termini di acquisizione prevedono l'emissione di 6 milioni di azioni ordinarie Wealth al venditore. L'azienda prevede di integrare Pabellón nel suo attuale progetto congiunto Kuska, creando potenzialmente sinergie nelle operazioni di fornitura energetica e lavorazione.
Wealth Minerals (WMLLF) ha firmado una carta de intenciones no vinculante para adquirir un interés del 100% sin regalías en el Proyecto de Litio Pabellón, que consiste en 26 licencias de exploración minera que cubren 7,600 hectáreas en el norte de Chile. El proyecto está ubicado cerca de la frontera entre Chile y Bolivia e incluye acceso a la planta geotérmica Cerro Pabellón, operada por ENEL.
Las muestras de fluido geotérmico de la planta contienen un contenido de litio que varía de 31 a 75 mg/L, con un caudal de 1,500 t/hora, lo que podría generar entre 2,000 y 5,000 t anuales de Carbonato de Litio Equivalente. Wealth planea instalar una unidad de Extracción Directa de Litio en la planta para recuperar litio del fluido geotérmico.
Los términos de adquisición implican la emisión de 6 millones de acciones comunes de Wealth al vendedor. La empresa planea integrar Pabellón en su actual proyecto conjunto Kuska, potencialmente creando sinergias en el suministro de energía y las operaciones de procesamiento.
Wealth Minerals (WMLLF)는 칠레 북부에 위치한 26개의 광물 탐사 허가증을 포함해 총 7,600헥타르를 차지하는 파벨론 리튬 프로젝트에 대한 100% 로열티 없는 비구속적인 LOI를 체결했습니다. 이 프로젝트는 칠레와 볼리비아 국경 근처에 위치하며, ENEL이 운영하는 Cerro Pabellón 지열 발전소에 접근할 수 있습니다.
발전소에서 채취한 지열 유체 샘플의 리튬 농도는 31에서 75 mg/L로, 유량은 1,500 t/시간에 달하며, 연간 2,000에서 5,000t의 리튬 탄산염 동량을 생산할 가능성이 있습니다. Wealth는 지열 유체에서 리튬을 회수하기 위해 발전소에 직접 리튬 추출 장치를 설치할 계획입니다.
인수 조건에는 판매자에게 600만 주의 Wealth 보통주를 발행하는 것이 포함됩니다. 회사는 Pabellón을 기존의 Kuska 프로젝트 합작 투자에 통합하여 전력 공급 및 가공 운영에서 잠재적인 시너지를 창출할 계획입니다.
Wealth Minerals (WMLLF) a signé une lettre d'intention non contraignante pour acquérir un intérêt de 100% sans redevances dans le Projet Lithium Pabellón, composé de 26 permis d'exploration minière couvrant 7 600 hectares dans le nord du Chili. Le projet est situé près de la frontière chili-bolivienne et comprend l'accès à la centrale géothermique Cerro Pabellón, exploitée par ENEL.
Les échantillons de fluides géothermiques de la centrale contiennent un taux de lithium variant de 31 à 75 mg/L, avec un débit de 1 500 t/heure, ce qui pourrait produire entre 2 000 et 5 000 t par an d'Équivalent Carbonate de Lithium. Wealth prévoit d'installer une unité d'Extraction Directe de Lithium à la centrale pour récupérer le lithium du fluide géothermal.
Les conditions d'acquisition impliquent l'émission de 6 millions d'actions ordinaires Wealth au vendeur. L'entreprise prévoit d'intégrer Pabellón dans son projet conjoint existant Kuska, ce qui pourrait créer des synergies dans l'approvisionnement en énergie et les opérations de traitement.
Wealth Minerals (WMLLF) hat eine unverbindliche Absichtserklärung unterzeichnet, um ein 100%iges royaltyfreies Interesse am Pabellón Lithium-Projekt zu erwerben, das aus 26 Mineralexplorationslizenzen besteht und 7.600 Hektar im Norden Chiles umfasst. Das Projekt liegt in der Nähe der Grenze zwischen Chile und Bolivien und umfasst den Zugang zum geothermischen Kraftwerk Cerro Pabellón, das von ENEL betrieben wird.
Die Proben des geothermischen Fluids aus dem Kraftwerk enthalten Lithiumgehalte zwischen 31 und 75 mg/L, mit einer Flussrate von 1.500 t/Stunde, was potenziell 2.000 bis 5.000 t jährlich an Lithiumkarbonatäquivalent ergeben könnte. Wealth plant, eine Einheit zur direkten Lithiumextraktion im Kraftwerk zu installieren, um Lithium aus dem geothermischen Fluid zu gewinnen.
Die Erwerbsbedingungen beinhalten die Ausgabe von 6 Millionen Stammaktien von Wealth an den Verkäufer. Das Unternehmen plant, Pabellón in sein bestehendes Joint Venture des Kuska-Projekts zu integrieren, was potenziell Synergien in der Energieversorgung und bei den Verarbeitungsoperationen schaffen könnte.
- Project is on Chilean Ministry of Mining's shortlist for Special Lithium Operation Contract
- Potential annual production of 2,000-5,000 tonnes of Lithium Carbonate Equivalent
- Access to existing power infrastructure through Cerro Pabellón geothermal plant
- Synergistic opportunities with existing Kuska project for power supply and processing
- 100% royalty-free acquisition structure
- Non-binding LOI status indicates deal uncertainty
- Share issuance of 6 million shares will cause dilution
- Relatively low lithium concentration (31-75 mg/L) compared to traditional brine projects
Vancouver, British Columbia--(Newsfile Corp. - February 6, 2025) - Wealth Minerals Ltd. (TSXV: WML) (OTCQB: WMLLF) (SSE: WMLCL) (FSE: EJZN) - (the "Company" or "Wealth") announces it has executed a non-binding Letter of Intent (the "LOI") to enter into an option agreement giving it the right to acquire a
The Pabellón Lithium Project consists of a portfolio of 26 mineral exploration licenses with an area of 7,600 hectares located in northern Chile, Region II, near the Chile-Bolivia border and approximately 70km due south of the Ollagüe salar. On the surface of the Pabellón license area is the thermal power generation station "Cerro Pabellón" (the "Power Plant"), majority-owned and operated by ENEL ("ENEL"), a multinational Italian utility company (ticker ENEL.MI, market capitalization as of January 16, 2024 of EUR70bn). The Cerro Pabellón geothermal power plant is the only operational geothermal plant in South America, and harnesses underground sourced fluid from a medium-high enthalpy reservoir using binary technology, extracting thermal energy and feeding it into a secondary turbine circuit, then re-injecting
Wealth is considering a plan to install a lithium extraction production unit ("Wealth Unit") adjacent to the Power Plant, after the thermal power generation equipment but before the re-injection of fluid. The Wealth Unit would recover lithium using Direct Lithium Extraction technology ("DLE"). The Pabellón licenses give Wealth certain exclusive rights to the minerals in the fluid ENEL uses at the Power Plant.
Hendrik van Alphen, Wealth's CEO, said "The Pabellón Lithium Project is an exciting acquisition for Wealth and represents the team's foresight to get the most value out of our Kuska Project. By adding an additional potential source of mineral material to Kuska and positioning the Company to have an advantage in securing power for future Kuska development, Wealth has now made Kuska more attractive, and by preliminary management estimates, less risky to execute. Additionally, working to connect Kuska and Pabellón, Wealth is pushing a greener, more environmentally friendly development model for mineral extraction. We look forward to working with all stakeholders, from the Indigenous Quechua Community of Ollagüe, ENEL, our strategic investor Sulzer (see press release of May 10, 2024), Chilean officials and others to bring forth Kuska's full potential."
Pabellón Lithium Project
As part of building the Power Plant, the composition of several fluid samples which were collected are public knowledge. Lithium content in these samples ranges from 31 to 75 mg/L. This is comparable to lithium content in underground oil well water, and currently there are several projects under study by multiple companies in Alberta in Canada, as well as in Texas, Arkansas and other locations in the USA. Given the flow rate of fluid at the Power Plant of 1,500 t/hour, the implied flow of lithium, expressed as Lithium Carbonate Equivalent, is between 2,000 and 5,000 t/annually.
Source: Sernageomin report "Geotermica del Norte" dated 19/08/2010, World Geothermal Congress 2020, report "First Geochemical Data from Cerro Pabellón Geothermal Project", Cerro Pabellón EIA report 2011.
Management fully expects that the Company know-how developed with evaluating DLE technology partners will be utilized in developing Pabellón and achieving maximum lithium recovery.
Pabellón - Kuska Synergies
Wealth management believes there are significant synergies between the Company's existing Kuska project, and Pabellón. A key area in this regard is power. The Power Plant has the capacity to supply a future Kuska project with all necessary power, as per that project's NI 43-101 technical report, entitled "National Instrument 43-101 Technical Report - Preliminary Economic Assessment - Kuska Project, Region of Antofagasta, Chile (the "Technical Report"), dated February 16, 2024 and available at www.sedarplus.ca. Management estimates indicate that the assumptions in the Technical Report for power cost can be improved if they include the Power Plant at Cerro Pabellón as the power source. An additional synergy is downstream processing of any material recovered at the Pabellón Lithium Project, as the Company intends to use a mature DLE technology to convert lithium-bearing brine into battery-grade lithium carbonate. Lastly, overhead and key personnel will be allocated over a larger operational footprint in order to lower per unit costs, such costs elaborated in the Technical Report.
Once the Pabellón Lithium Project is acquired, Wealth intends to vend it into the to-be-created Kuska Project Joint Venture with the Quechua Indigenous Community of Ollagüe (Please see press release of February 3, 2025).
Pabellón Lithium Project Map
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Terms of the LOI
The terms of the LOI provide that, subject to the completion of certain conditions, including TSX Venture Exchange acceptance and entry into a definitive option agreement, Wealth (or a subsidiary of Wealth) would be granted the exclusive option to acquire a
About Wealth Minerals Ltd.
Wealth is a mineral resource company with interests in Canada and Chile. The Company's focus is the acquisition and development of lithium projects in South America.
The Company opportunistically advances battery metal projects where it has a peer advantage in project selection and initial evaluation. 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. In parallel with lithium market dynamics, Wealth believes other battery metals will benefit from similar industry trends.
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.sedarplus.ca.
On Behalf of the Board of Directors
WEALTH MINERALS LTD.
"Hendrik van Alphen"
Hendrik van Alphen
Chief Executive Officer
For further information, please contact:
Marla Ritchie, Michael Pound or Henk van Alphen
Phone: 604-331-0096 or 604-638-3886
For all Investor Relations inquiries, please contact:
John Liviakis
Liviakis Financial Communications Inc.
Phone: 415-389-4670
For all Public Relations inquiries, please contact:
Nancy Thompson
Vorticom, Inc.
Office: 212-532-2208 | Mobile: 917-371-4053
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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 press release, which has been prepared by management.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the anticipated content, commencement, timing and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the Company's expectation that it will be able to enter into agreements to acquire interests in additional mineral projects, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the commodity markets generally, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the inability of the Company to obtain any necessary permits, consents or authorizations required, including TSXV acceptance, for its planned activities, the inability of the Company to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's latest interim Management Discussion and Analysis and filed with certain securities commissions in Canada. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/239828
FAQ
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