TIDMGSCU
RNS Number : 9894M
Great Southern Copper PLC
20 September 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014
WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL)
ACT 2018, AS AMED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
20 September 2023
Great Southern Copper plc
("GSC" or the "Company")
GSC Secures "Monti Lithium Project" in the Prolific Salar de
Atacama Region, Chile
23,500 ha of Concession Area under Application
Great Southern Copper plc (LSE: GSCU), mineral exploration
company focused on the discovery of copper-gold and lithium
deposits in Chile, is pleased to announce that it has executed a
binding Term Sheet for the Monti Lithium Project located in the
Salar de Atacama, Chile's premier lithium producing region.
Summary:
-- Large concession holding under application in the Salar de Atacama district
-- The Salar de Atacama is Chile's premier lithium brine production region
-- Ideal location with excellent infrastructure for power, transport and port
-- Term Sheet allows for 100% GSC ownership of the Monti Lithium
Project on grant of concessions and satisfaction of option
payments
-- Initial US$10,000 payment to vendors completed with further
annual cash and share payments over 3 years for a total
consideration value of US$2.26m ( GBP 1.8m)
-- Delivers on corporate objective to add third project to GSC's portfolio
-- Continuing copper exploration with imminent drilling to
commence at highly prospective Especularita copper/gold targets
Monti Li Project:
The Monti Lithium Project, located in the Salar de Atacama
district of Chile (Figure 1), comprises 81 concession applications
for a total combined concession area of 235 km(2) (23,500 ha).
The Salar de Atacama is a Tier 1 lithium production salar with
estimated pre-mine resources greater than 6.0 Mt Li(1) . Lithium is
hosted in subterranean brine solutions which are pumped to the
surface, where the lithium is extracted via evaporation processes
producing a lithium carbonate (LiCO(3) ) concentrate product.
Term Sheet:
GSC have signed a binding Term Sheet which allows the Company to
earn 100% of the potential mining rights of the Monti Lithium
Project once granted, subject to the satisfaction of annual option
payments over a 4-year period according to the following
schedule:
US$ Value GSCU
Date Cash US$ shares
----------
Signing date 10,000 0
6 months 50,000 0
12 months 50,000 50,000
24 months 50,000 50,000
36 months 1,000,000 1,000,000
-------------- ---------- ---------------
The Company has executed the Terms Sheet with payment of
US$10,000 to the vendor. There are no royalty provisions attached
and if the Company withdraws from the agreement prior to satisfying
the final option payment then it will hold no interest in the Monti
Lithium Project.
Sam Garrett, Chief Executive Officer of Great Southern Copper,
said: "We are very excited by the scale of the opportunity that the
Monti Lithium Project presents and to enter the highly competitive
lithium exploration space in Chile.
"Chile is the world's largest producer of copper and the
second-largest producer of lithium. Both metals are considered
vital commodities as the world aims to reduce its reliance on
fossil fuels and transition to green energy . As such, the Monti
Lithium Project is a natural fit to complement GSC's two copper
projects at San Lorenzo and Especularita.
"The Monti Lithium Project delivers on the Company's strategic
objective to add a third project to its portfolio and further
emphasises the Company's enduring and important relationship with
our in-country partners. Our partners ability to identify projects
of significance is a great asset to GSC."
Lithium production in Chile:
Chile is currently the world's second largest producer of
lithium after Australia(2) . Unlike Australia where lithium is
recovered from spodumene-rich pegmatites, lithium in Chile is
recovered from salt brine solutions located within and beneath
high-altitude geographic depressions known as "salars" or salt
lakes. In the Andean region of South America, lithium-rich salars
occur in Bolivia, Argentina and Chile. Total reserves and resources
of lithium calculated in Chile are estimated at 14.3 Mt Li(3) with
the Salar de Atacama being the largest lithium producing salar.
The Chilean government recognises the strategic importance of
lithium to the country's economy and has recently moved to address
a new model whereby companies wishing to extract and produce
lithium are required to enter into contracts (CEOLs) with the
State, negotiating with government companies Codelco or ENAMI(4) .
Codelco is Chile's state copper mining company and is the largest
copper producer globally. ENAMI is a state-owned copper and
gold-silver production company mandated to purchase and process
ores from medium and small-scale copper and gold miners across
Chile. Concerns for the water and environmental impact of
evaporation extraction of lithium from brines on the water table of
the salars also means that new producers in Chile will be required
to utilise direct lithium extraction (DLE) technology to recover
lithium from brine solutions.
Next steps:
Over the coming months the Company will conduct due diligence on
the project and prepare plans for its exploration programmes. Work
will include reconnaissance field trips to undertake surface
sampling and mapping programmes.
Figure 1: Location of Monti Lithium project concession
applications (indicated by white polygons), Salar de Atacama,
Chile. Location of evaporite pond production facilities for (SQM)
and Albemarle are indicated.
References:
1. Sykes (2019): A global overview of the geology and economics
of lithium production. AusIMM lithium conference.
2. U.S. Geological Survey (2023): Mineral commodity summaries.
3. Cabello (2021): Lithium brine production, reserves, resources
and exploration in Chile: An updated review. Ore Geology Reviews,
v128.
4. Quinzio (2022): Gobernanza y marco legal para la exploitacion del litio en Chile.
Enquiries:
Great Southern Copper plc
Sam Garrett, Chief Executive Officer +44 (0) 20 4582 3500
---------------------
SI Capital Limited
---------------------
Nick Emerson +44 (0) 1483 413500
---------------------
Gracechurch Group
---------------------
Harry Chathli, Alexis Gore, Henry
Gamble +44 (0) 20 4582 3500
---------------------
Notes for Editors:
About Great Southern Copper
Great Southern Copper PLC is a UK-listed mineral exploration
company focused on the discovery of copper-gold-lithium deposits in
Chile. The Company has the option to acquire rights to 100% of
three projects that are prospective for large scale copper-gold
deposits and lithium brine deposits. Chile is a globally
significant mining jurisdiction being recognised as the world's
largest copper producer and the second largest producer of
lithium.
The three projects comprise the San Lorenzo and Especularita
Cu-Au Projects, located in the central north of Chile, and the
Monti Lithium Project located in the Salar de Atacama. The two
early-stage Cu-Au exploration projects are within the same coastal
metallogenic belt as other major deposits including Teck's
Andacollo copper and gold mine. Significant historical small-scale
and artisanal workings for both copper and gold are readily evident
in both exploration project areas.
Great Southern Copper is strategically positioned to support the
global market for copper and lithium, both key metals in the clean
energy transition around the world. The Company is actively engaged
in exploration and evaluation work programmes targeting large
tonnage, low to medium grade Cu-Au deposits as well as lithium
brine and lithium clay-hosted deposits.
Further information on the Company is available on the Company's
website: https://gscplc.com
Forward Looking and Cautionary Statements
Some statements in this announcement regarding estimates or
future events are forward-looking statements. They include
indications of, and guidance on, future earnings, cash flow, costs
and financial performance. Forward-looking statements include, but
are not limited to, statements preceded by words such as "planned",
"expected", "projected", "estimated", "may", "scheduled",
"intends", "anticipates", "believes", "potential", "predict",
"foresee", "proposed", "aim", "target", "opportunity", "could",
"nominal", "conceptual" and similar expressions. Forward-looking
statements, opinions and estimates included in this report are
based on assumptions and contingencies which are subject to change
without notice, as are statements about market and industry trends,
which are based on interpretations of current market conditions.
Forward-looking statements are provided as a general guide only and
should not be relied on as a guarantee of future performance.
Forward-looking statements may be affected by a range of variables
that could cause actual results to differ from estimated or
anticipated results and may cause the Company's actual performance
and financial results in future periods to materially differ from
any projections of future performance or results expressed or
implied by such forward-looking statements. So, there can be no
assurance that actual outcomes will not materially differ from
these forward-looking statements.
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