- Published: 26 November 2009
- Written by Editor
Salares Lithium Inc. Executes Final Agreement and Completes Change of Business and Reactivation
Change of Business and Reactivation
Salares Lithium Inc. (TSX VENTURE: LIT.V), formerly P2P Health Systems Inc. (the "Company"), is pleased to report that the Company has executed a definitive option agreement (the "Definitive Agreement") on the 'Salares 7' lithium project in Region III, Chile, in conjunction with the TSX Venture Exchange ("TSXV") acceptance for filing of the Company's change of business and reactivation (the "Change of Business"). The Definitive Agreement replaces and supersedes the letter agreement dated May 22, 2009, as amended, pursuant to which the Company was granted the option to acquire up to 70% in the share capital of Salares de Atacama Sociedad Contractual Minera ("SALA"), a private Chilean company and the 100% owner of the 'Salares 7' project. Details of the terms of the option are set out in the Company's information circular dated October 9, 2009.
Deemed Exercise of Subscription Receipts
Having received TSXV final acceptance to the Change of Business and having entered into the Definitive Agreement, the Company has satisfied the conditions under the terms of the subscription receipt indenture between the Company and Computershare Trust Company of Canada for the release from escrow of the gross proceeds of CAN$1,500,000 raised under the Company's private placement of 18,750,000 Subscription Receipts (refer to the Company's press release dated September 22, 2009). As a result, effective today the Subscription Receipts are deemed exercised, for no additional consideration, into an aggregate of 9,375,000 common shares (the "Shares") (on a post-consolidated basis) and 9,375,000 common share purchase warrants (the "Warrants") (on a post-consolidated basis) exercisable to purchase up to 9,375,000 common shares (the "Warrant Shares") at price of $0.32 per common share until November 26, 2012. Certificates representing the Shares and Warrants will be mailed to holders of Subscription Receipts on or before Tuesday, December 1st.
The Shares, Warrants and Warrant Shares issued or issuable under the private placement are subject to a four month hold period expiring on January 22, 2010.
The proceeds from the private placement will be used to carry out the Company's recommended work program on the "Salares 7" project as set out in the technical report titled "Technical Report on Salares 7 Property, Region III, Chile" dated August 31, 2009 (the "Technical Report") and available on Sedar.
Share Consolidation and Name Change
In conjunction with the Change of Business, effective today the Company completed its previously announced share consolidation on the basis of one new common share for each two old common shares. Also effective today, the Company's name was changed from "P2P Health Systems Inc." to "Salares Lithium Inc." and the Company commenced trading under its new name on Tier 2 of the TSXV as a mining issuer.
A letter of transmittal setting out the procedure for shareholders to exchange certificates representing their old shares of P2P Health Systems Inc. for the new consolidated shares of the Company to which they are entitled will be mailed by the Company's transfer agent to registered shareholders shortly.
The Salares 7 Lithium Project
The 'Salares 7' lithium project is made up of 7 salares (brine lakes) in Region III, Chile. The project comprises 39,404 hectares (400 square kilometres ("sq km")) of exploration potential within the salares alone.
The 'Salares 7' lithium project has a unique feature in that 5 of the 7 salares are clustered within 200 sq km's and in an area easily accessible by road. The second unique aspect of these 5 clustered salares is that they are 100% owned. There is no severed ownership, allowing for the Company to advance beyond exploration, subject to feasibility, unencumbered by possible competing parties.
An exploration program is currently being developed based on the recommendations set forth in the Techncial Report.
Under the terms of the Definitive Agreement, in order to earn 70% of the 'Salares 7' lithium project, the Company must complete work commitments of US$2,500,000 within the first three years of the Definitive Agreement (50% earn-in) and deliver a bankable feasibility study within two years of earning the first 50%.
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.
Contacts
Todd Hilditch
Salares Lithium Inc.
President and CEO
(604) 443-3831
