Wealth Minerals and Uranium One Group Extend Memorandum of Understanding
Wealth Minerals Ltd. has extended its strategic memorandum of understanding with Uranium One Group for an additional year, reinforcing collaboration on the Atacama lithium project. The company emphasizes the need to transition away from outdated solar evaporation methods towards U1G's advanced sorption technology, which enhances lithium extraction while minimizing environmental impact. This extension indicates ongoing mutual interest in developing lithium resources in South America amidst a growing demand for the metal.
- Extension of MOU with U1G indicates strong partnership and commitment to project development.
- Adoption of U1G's sorption technology promises improved lithium extraction efficiency and reduced environmental impact.
- None.
VANCOUVER, British Columbia, Oct. 14, 2020 (GLOBE NEWSWIRE) -- Wealth Minerals Ltd. (the “Company” or “Wealth”) - (TSXV: WML; OTCQX: WMLLF; SSE: WMLCL; Frankfurt: EJZN), announces it has signed a one-year extension of its strategic memorandum of understanding (the “MOU”) with Uranium One Group (“U1G”). All other terms of the MOU remain unchanged (see news release dated October 15, 2019).
Tim McCutcheon, President of Wealth, commented, “We are glad to have more time to work with U1G under the previously signed MOU, and the one-year extension demonstrates that all parties remain interested in developing Wealth’s core Atacama asset. We believe that solar evaporation is an outdated production technique and U1G’s sorption technology is the future direction the industry will take, as it is efficient and environmentally friendly.”
Background
Lithium production operations that utilize salars (underground brine reservoirs) typically use solar evaporation as the major part of the lithium recovery process. While this process has a low operating expense and is technologically simple, it also requires significant land for ponds in which lithium brine, after subsurface pumping, is placed for drying. Additionally, water in the brine is evaporated into the atmosphere, lost from the locality forever. In extremely dry areas like the high Andes Mountains, where most lithium brine operations are located, solar evaporation is seen as having long term sustainability issues. There are several new technologies for recovering lithium from brine, however, most of these technologies have negative points in their methodology which have stalled their commercial implementation.
U1G provides a lithium extraction technology for processing lithium-bearing brine material which uses a reusable catalyst material to attract lithium out of brine, thus eliminating the need for solar evaporation. Using this sorption technology greatly reduces the physical footprint typically needed in a solar evaporation operation, specifically large, multi-phase, lined evaporation ponds. Its technology also enhances the quality of lithium extraction and recovery levels as compared to traditional solar evaporation. Lastly, after lithium recovery, the brine can then be pumped back into the salar, helping to ensure long-term operational and environmental viability.
About U1G
U1G is a global energy company and one of the world’s largest uranium producers, with a diverse portfolio of assets worldwide, including in Kazakhstan, the United States, Tanzania and elsewhere. U1G is committed to the highest environmental standards, the health and safety of its employees and the long-term sustainability of the diverse communities across the globe in which it operates. See: http://www.uranium1.com/.
About Wealth Minerals Ltd.
Wealth is a mineral resource company with interests in Canada, Mexico and Chile. The Company’s main focus is the acquisition and development of lithium projects in South America.
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, Henk van Alphen or Tim McCutcheon |
| Phone: 604-331-0096 Ext. 3886 or 604-638-3886 E-mail: info@wealthminerals.com |
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 news release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian and U.S. securities legislation, including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including, without limitation, statements with respect to the Company’s anticipated exploration program results from exploration activities, the Company’s expectation that it will be able to obtain the necessary permits to exploit, develop, produce and export lithium, 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: “believes”, “expects”, “anticipates”, “intends”, “estimates”, “plans”, “may”, “should”, “would”, “will”, “potential”, “scheduled” or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, that the Company will be able to negotiate and enter into definitive agreements for the Proposed Transaction, that TSXV acceptance and the required corporate approvals of same will be obtained by the Company, that market fundamentals will result in sustained lithium demand and prices, the receipt of any necessary permits, licenses and regulatory approvals in connection with the future development of the Company’s Chilean lithium projects in a timely manner, the availability of financing on suitable terms for the development, construction and continued operation of the Company’s projects, that the U1G’s technology can be successfully applied to the Company’s lithium projects, including the Atacama Project, and the Company’s ability to comply with environmental, health and safety laws.
Forward-looking statements by the Company are not guarantees of future results or performance, and actual results may differ materially from those in forward-looking statements as a result of risks and other various factors, including, operating and technical difficulties in connection with mineral exploration and development activities, actual results of exploration activities, including on the Atacama Project, the estimation or realization of mineral reserves and mineral resources, the timing and amount of estimated future production, the costs of production, capital expenditures, the costs and timing of the development of new deposits, requirements for additional capital, future prices of lithium, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, accidents, labour disputes and other risks of the mining industry, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, changes in laws, regulations and policies affecting mining operations, title disputes, the inability of the Company to enter into definitive agreements and/or obtain any necessary permits, consents, approvals or authorizations, including acceptance by the TSXV, required for the Proposed Transaction, the inability of the Company successfully apply U1G’s technology to the Company’s lithium projects, the timing and possible outcome of any pending litigation, environmental issues and liabilities, risks related to joint venture operations, and other risks and uncertainties disclosed in the Company’s latest interim Management’s 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.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements in this news release or incorporated by reference herein, except as otherwise required by law.
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