Unity Acquires Miller's Crossing Lithium Project, Nevada
DECEMBER 2, 2015 – Unity Energy Corp. (UTY:TSX.V) (“Unity” or the “Company”) is pleased to announce that it has entered into an agreement with two arms’ length vendors to acquire a 100% interest in the Miller’s Crossing Lithium Project, comprised of 1,920 acres (777Ha) of contiguous placer claims, located in the Big Smoky Valley, Esmeralda County, Nevada. The Big Smoky Valley is located immediately north of the Clayton Valley, home to Albemarle’s Silver Peak Lithium Mine (in continuous operation since 1967), and is where Pure Energy recently identified a NI43-101 compliant inferred resource of 816,000 metric tonnes of lithium carbonate equivalent (LCE)* at a cut-off of 20mg/L in brine. (*Technical Report (2015) Spanjers, MS. PG.)
The Miller’s Crossing Project is located east of ground held by Ultra Lithium, and is ~40km north of the Silver Peak mine. The principal target at the Miller’s Crossing Project is a large northeast trending gravity low anomaly which is suggestive of an in-filled basin. The Big Smoky Valley was investigated with regional reverse circulation (“RC”) drilling in 1979 by the United States Geological Survey (USGS) and anomalous lithium values were encountered in the basin sediments. The quality and concentrations of lithium brines discovered in the Clayton Valley may be present in the Big Smoky Valley.
Tesla Motors, which in September of 2015 signed an off-take agreement with Pure Energy, is driving the current lithium exploration boom in Nevada. Tesla is building a lithium-ion battery factory, called the Gigafactory, just outside of Sparks, Nevada, which is scheduled to be operational in 2016/17. The Miller’s Crossing Project is located some 225 km SE of the Gigafactory site.
Under the terms of the agreement, the Company can earn a 100% interest in the claims by issuing to each vendor 800,000 common shares, for an aggregate of 1,600,000 common shares within 5 days of TSX Venture Exchange approval. The Company is also obligated to make cash payments totaling $100,000 to the vendors on or before December 31, 2016, $100,000 on or before December 31, 2017, $200,000 on or before December 31, 2018, and incur no less than $1,000,000 in exploration expenditures within 4 years of the signing of the agreement. A 1% Gross Overriding Royalty (“GORR”) has also been granted to the vendors, of which ½% can be purchased by the Company for $1,000,000. This transaction is subject to TSX Venture Exchange approval.
About Lithium in Nevada
Lithium is a scarce and technologically important element produced primarily from brines and pegmatites. Although it is a non-renewable resource, it is used in conjunction with renewable energy technologies and hybrid automobiles, primarily in the form of Li-ion batteries, currently the most widely applied battery technology in many electronic devices. The consumption of lithium carbonate is on the rise and so far global production has kept pace with demand.
Located in the Range Province in southern Nevada, the Big Smoky Valley, which is approximately 3km wide and 14km long, is an internally drained, fault bounded and closed basin. Geological modeling suggests that lithium-rich brines have been transported and deposited in the both the Clayton and Big Smoky valleys since the Pleistocene era. The primary exploration model is to identify and map basins with ground gravity surveys and evaluate the chemistry of salts and sediments therein with RC or rotary-mud drilling. In the later stages of exploration, downhole geophysics and seismic reflection surveys are also utilized to define lithium bearing aquifers.
The technical contents of this news release have been prepared under the supervision of Dr. Peter Born, P. Geo. Dr. Born is a Qualified Person as defined in NI 43-101, and has approved this news release.
For more information, contact the Company at 604-681-0004 or visit www.unityenergycorp.com.
On Behalf of the Board of Directors of Unity Energy Corp.
Anita Algie B.Sc. Hon, President
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.
Forward Looking Statements
Certain statements in this press release are forward-looking statements within the meaning of applicable securities laws. Forward-looking statements in this press release include that a large northeast trending gravity low anomaly at Miller’s Crossing is suggestive of an in-filled basin, that it is the Company’s belief that the quality and concentrations of lithium brines discovered in the Clayton Valley are likely present in the Big Smoky Valley, that Li carbonate consumption is on the rise, and that that lithium-rich brines have been transported and deposited in the Big Smoky valley. There can be no assurance that a forward-looking statement or information referenced herein will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Also, many of the factors are beyond our control. Accordingly, readers should not place undue reliance on forward-looking statements or information. We undertake no obligation to reissue or update any forward-looking statements or information except as required by law.