New World Minerals to Acquire Large Lithium Project

VANCOUVER, British Columbia - March 22, 2017 - PRLog -- One World Minerals Inc. (OWM.C) entered into a binding letter agreement with Lithium Investments Ltd. (LIL), an arm's-length private B.C. company, to acquire all of the shares of LIL from the shareholders thereof.

The principal assets of LIL consist of the rights and interests under an option and joint venture agreement with third parties to acquire up to a 90 per cent interest in the Rico Litio property in Mexico.

Lico Litio covers 291 square miles, or 75,410 hectares, over a closed basin where surface and auger samples were taken over a distance of 74 miles (120 kilometres).

The sampling work program was conducted by LIL and returned assay results between 53 parts per million to 188 parts per million lithium in the northern part of the property. In the southern part of the property, samples ranged from 15 parts per million and 82 parts per million lithium, with an average value of 74 parts per million lithium from 24 samples across 74 miles. It is important to note that the samples were taken from surface salts and shallow auger holes and not from brines that may occur at depth.

The samples were taken by Jehcorp Inc., a private geologic consulting company, and analyzed at Chemex Labs, Vancouver. The samples also assayed between 1 per cent and 1.9 per cent potassium at both ends of the property. The boron assays are also enriched.

The basin also has geological attributes to develop lithium brines, including recent tectonic and volcanic activity; many hot springs; young rhyolitic volcanic lavas; high heat flows within the region; and ash flow tuffs surrounding and within the basin.

The property is located in the state of Baja California Norte, Mexico. Ready access to the property includes paved roads and dirt roads within the basin. There is paved access to the United States, which is 100 miles to the north. The property is only 21 miles (35 kilometres) from San Felipe, which is a well-established service centre that can provide housing and mine staff. Power is available from major power lines that cross the property near the north end as well as interconnected power lines from the U.S. via Mexicali to San Felipe.

Management anticipates that the initial exploration program on the property will include gravity, time-domain electromagnetics, and resistivity geophysical surveys, geologic mapping and detailed geochemical sampling throughout the basin prior to drill testing for anomalous brines, with drilling of several targets to commence in May 2017, and to be completed before the end of June 2017.

The transaction does not constitute a reverse takeover transaction, but One World Minerals intends to file a business acquisition report within 75 days of closing with respect to the acquisition in accordance with National Instrument 51-102.

Closing of the transaction is conditional upon several conditions, including satisfactory due diligence by One World Minerals on the property and stock exchange approval.

Andrea Diakow, PGeo, a qualified person as defined in National Instrument 43-101 and a consultant of One World Minerals, has read and approved the scientific and technical disclosure as stated in this news release.


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