One World Minerals Inc. Announces Closing of Option to Acquire Up to 90% Interest in Salar del Diablo Property
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 28, 2017) - One World Minerals Inc. (''OWM") (CSE:OWM)(CSE:OWM.CN)(CNSX:OWM) is pleased to announce that it has closed its previously announced acquisition of Lithium Investments Ltd. with the following amended terms. The principal assets of LIL consist of the rights and interests under an option and joint venture agreement (the "Option Agreement") with third parties to acquire up to a 90% interest in the Salar del Diablo Property (formerly Rico Litio) in Mexico.
Under the Option Agreement, OWM has agreed to issue 23,500,000 common shares to LIL with 11 million common shares issuable upon closing the transaction and the balance of 12.5 million common shares are issuable upon the first anniversary of the closing date. In addition, OWM has agreed to pay LIL i) CDN$100,000 30 days after the closing date, ii) CDN$200,000 on the first anniversary date of the closing date, iii) CDN$300,000 on the second anniversary date of the closing date, and iv) CDN$400,000 on the third anniversary date of the closing date.
Pursuant to the terms of the Option Agreement, OWM has the option to earn an 80% interest in the Property for the issuance of 1,700,000 shares, payment of US$1,280,000 and property expenditures over three phases totalling US$2,162,875 before the end of 2018. OWM has the option to acquire an additional 10% interest in the Property for a further estimated payment of US$5,000,000 upon delivery of a bankable feasibility report on the Property. If the underlying owners dilute to lesser than 10%, a 2.0% NSR royalty replaces the 10% property interest, and OWM has an option to purchase one half of the NSR royalty for US$5,000,000.
The Salar del Diablo Property covers a large closed basin of 75,400 hectares which is 120 kilometers long and between 10 to 40 kilometers wide (750 square kilometers). The Property is in the State of Baja California Norte and 35 kilometers from San Felipe, Mexico.
On behalf of the Board of Directors of One World Minerals Inc.,
Douglas Fulcher, CEO and President
For additional information please review the Company's web site at www.oneworldminerals.ca.
Forward-Looking Information: This press release may include forward looking information within the meaning of Canadian securities legislation concerning the business of the OWM. Forward looking information is based on certain key expectations and assumptions made by the management of the OWM regarding the proposed exploration program. Although OWM believes that the expectations and assumptions on which such forward looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because OWM can give no assurance that they will prove to be correct. Forward looking statements contained in this press release are made as of the date of this press release. OWM disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from the those anticipated in such statements, important factors that could cause actual results to differ materially from the company's expectations include: (I) potential comments from regulators which may delay; (II) inability of OWM to execute its business plan and raise the financing required to implement an exploration program; and (III) risks and market fluctuations common to the mining industry and lithium sector in particular. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, some of which are beyond the control of the OWM. The reader is cautioned not to place undue reliance on any forward-looking information contained in this press release.
