VANCOUVER, BRITISH COLUMBIA–(Marketwired – June 9, 2016) – Rainmaker Resources Ltd. (TSX VENTURE:RIR) (“Rainmaker”) is extremely pleased to announce that it has entered into an option agreement whereby the Company can acquire a 100% interest in the Sarcobatus Flats Lithium property (“Sarcobatus”), located in Nye County, Nevada. The Sarcobatus property comprises 48 placer mining claims, issued by the US Bureau of Land Management, covering approximately 1,000 acres (405 hectares). Importantly, Sarcobatus is anticipated to be a Lithium Brine project as opposed to a hard-rock deposit, known for much lower costs and faster time to production. Rainmaker intends to embark on a first phase exploration program as soon as possible, and will report further on targets and dates in the near future.
Sarcobatus is located approximately 70km South-East of Clayton Valley, home to the only producing Lithium mine in the United States owned by Albermarle. This area of Nevada has seen a rapid rise of exploration activity, including Pure Energy’s announcement of 816,000 metric tons of lithium carbonate equivalent (LCE). Access to the Sarcobatus Flats property is excellent, as the project lies directly adjacent to a main US highway, the US 95. With easy access to this flat and arid property, exploration costs are expected to be low (shallow drill holes), with minimal environmental impact.
“Sarcobatus is a truly high-potential lithium project which stood out from the pack as being particularly attractive for a number of reasons”, commented Chris Healey, P. Geo., CEO of Rainmaker. “We have been monitoring the surging lithium market as well as the deals being done in the space, and while I tend to critically scrutinize exploration assets given my 48 years as a geologist in the mining sector, the Sarcobatus lithium opportunity in Nevada hosts a number of key advantages both in terms of its geological characteristics as well as the acquisition terms negotiated by Rainmaker. We believe we can advance exploration quickly and economically, with the goal of discovering and developing a low cost lithium producer on the site, in mining-friendly Nevada.”
The Sarcobatus Lithium asset is located within a valley that is over 30km long and 19km wide, into which streams from an approximately 2,070 km2 drainage basin empty. The source rocks are quartz-rich volcanics that contain anomalous amounts of lithium. Sampling of salt flats within the basin indicate lithium values in sediment samples ranging from 150 to 300 ppm (USGS Professional Paper 918, Lithium in Unconsolidated Sediments and Plants of the Basin and Range Province, Southern California and Nevada). The lithium content of soils and vegetation in the Sarcobatus Flats property compare favorably with samples from Clayton Valley. The company’s qualified person has not independently sampled the property, nor has he independently verified the quoted results. The company is relying on the data reported by the United States Geological Survey in the report cited above.
INVESTMENT HIGHLIGHTS
- Lithium: Critical mineral for batteries powering electric cars, amongst many tech purposes
- Favourable Terms: Share acquisition, cash reserved for exploration
- High-Potential Project: Sarcobatus samples indicate lithium values 150 – 300ppm
- Location: Mining-friendly Nevada
- Large Land Package: Approximately 1,000 acres including 48 placer mining claims
- Infrastructure & Accessible: Sarcobatus sits adjacent to US highway 95
- Low-Cost Exploration: Shallow drill holes and ability to expediently advance exploration
- Rapid Advancement: Lithium Brines tend to require less drilling to discover resource
- Low-Cost Development/Production: Lithium Brine deposits tend to have the lowest costs
RAINMAKER OPTION DETAILS
Rainmaker negotiated the option in order to most optimally align current vendors with Rainmaker shareholders. The Company believes that the terms offer maximum upside, without costing cash to the Company, which will instead be utilized in exploring the project directly. Additionally, Rainmaker maintains the ability to assess and reassess progress at various intervals before completing the full share purchase. Under the option agreement, Rainmaker can earn an undivided 100% interest in the property by making the following payments:
- Shares of the company valued at US $35,000 (at a deemed price of US $0.07 per share) within seven days of the company receiving all necessary approvals from the TSX-V, and
- US $75,000 in cash or shares in the company at the first anniversary, and
- US $100,000 in cash or shares in the company at the second anniversary, and
- US $150,000 in cash or shares in the company at the third anniversary, and
- Spending no less than US $50,000 on exploration of the property in each of the first three years, and
- Reserving a 2% NSR to the optionor, 50% of which can be purchased by the company for US $1,000,000 before the fifth anniversary of the agreement.
ABOUT RAINMAKER
Rainmaker Resources is a TSX-V listed company focused on creating shareholder value. Rainmaker controls the option to acquire the Sarcobatus Flats Lithium project in Nevada.
Rainmaker currently also owns a 12.5% Joint Venture interest in a Uranium asset known as Dufferin Lake. Dufferin Lake is operated by NexGen Energy, a public company with a large portfolio of assets and a market capitalization of over $800-Million.
The Rainmaker team is led by President & CEO Chris Healey, a professional geologist with nearly 48 years of experience. Mr. Healey was CEO of Titan Uranium, which was acquired by Energy Fuels (a TSX and NYSE listed company). Mr. Healey spent 5 years managing US Operations for Cameco, including the acquisition of several major mining assets. As a geologist, Mr. Healey was involved in the discovery of the world’s two largest high grade Uranium deposits (as Cameco’s District Geologist on the discovery team for Cigar Lake, and Senior Geologist – Evaluations for McArthur River).
RAINMAKER SARCOBATUS MAP: http://media3.marketwire.com/docs/1058310_t.pdf
LITHIUM BRINE ADVANTAGES
Lithium Brine deposits are becoming known for their low costs and quicker exploration-to-production timelines. Drilling Lithium Brine deposits is cheaper on a per-meter basis, and moreover require less drilling overall.
CORPORATE UPDATE
Rainmaker is also pleased to report final closing of its prior announced private placement (see News Release dated May 27th 2016) for gross proceeds of just over $200,000, positioning Rainmaker to advance its new Lithium asset in Nevada pursuant to the option agreement. Sunel Securities has been an instrumental partner in connection with Rainmaker’s two most recent successful financings, which have allowed the Company to advance to this point.
Website currently under construction to reflect recent developments, for further information about the company, please see the company’s profile at www.sedar.com.
Chris M. Healey, P. Geo, President of Rainmaker, is the qualified person, under National Instrument 43-101, who is responsible for the technical content of this release. This news release has been prepared on behalf of the Directors of Rainmaker Resources Ltd., who accept responsibility for its contents.
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 release. This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com).
