VANCOUVER, March 24, 2016 /CNW/ - Wealth Minerals Ltd. (the
"Company" or "Wealth") - (TSXV: WML; Frankfurt: EJZ), announces
that it has arranged a non-brokered private placement of common
shares to raise up to $1,600,000. The Company has also negotiated
debt settlements to settle $687,000
of debt through the issuance of common shares.
Non-brokered Private Placement
The Company has arranged a non-brokered private placement of
common shares ("Placement") consisting of up to 8,000,000 common
shares at a price of $0.20 per share
to raise gross proceeds of up to $1,600,000. All shares issued in the
Placement will have a hold period in Canada of four months from the closing of the
Placement.
The net proceeds from the Placement are intended to be used to
fund the costs related to the ongoing discussions with Li3 Energy,
Inc. ("Li3") pursuant to the letter of intent with Li3 announced on
February 1, 2016 (NR16-01), including
to carry out and complete the required due diligence on Li3 and the
Maricunga Lithium Project, for the review and assessment of
additional potential lithium mineral property acquisitions and the
negotiation of related formal documentation for any such
acquisition(s), for property payments and for general and
administrative expenses and working capital.
Debt Settlements
The Company has negotiated the settlement ("Debt Settlement") of
an aggregate of $687,000 in debt
related to certain accounts payable to Cardero Resource Corp.
($477,000) and a portion ($210,000) of the principal sum of certain
outstanding loans originally made to the Company in 2011 by a
number of individuals, some of whom are non-arm's length to the
Company. The debt will be settled by the issuance of an
aggregate of 2,000,000 common shares at a deemed price of
$0.21 per share. The common
shares issued in the Debt Settlement will have a hold period in
Canada of four months from the
date of issuance. The Company is undertaking the Debt
Settlement to preserve its working capital and the completion of
the Debt Settlement will not create any new control persons.
Completion of the Placement and the Debt Settlement are both
subject to the acceptance for filing thereof by the TSX Venture
Exchange.
The Company is continuing discussions with Li3 under the LOI,
and the parties have agreed to extend the due diligence period for
an additional 60 days to 120 days total. However, no formal
agreements have been entered into and the completion of any
transaction with Li3 remains subject to a number of conditions
precedent, including the completion of satisfactory due diligence
by each company on the other and the Maricunga Lithium Project, the
negotiation and settlement of final definitive terms for a
transaction satisfactory to both parties and the execution of
formal agreements in that regard, receipt of any required
shareholder and court approvals, receipt of any required consent
from Li3's Chilean partner, the completion of the required
financing and the acceptance for filing of any such transaction by
the TSX Venture Exchange on behalf of Wealth. Accordingly, it
is not possible to complete any transaction with Li3 until all
conditions have been satisfied and that there can be no certainty
that any such transaction will be completed, either as presently
proposed, or at all.
In addition to the ongoing discussions with Li3 under the LOI,
the Company is currently also involved in the review and evaluation
of a number of prospective lithium mineral projects in South America for possible acquisition.
However, no agreements with respect to the acquisition of any such
mineral projects has yet been entered into, and there can be no
assurance that the Company will, in fact, be successful in entering
into any such agreements or acquiring interests in any additional
mineral properties.
This press release does not constitute an offer of sale of any
of the foregoing securities in the United States. None of the
foregoing securities have been and will not be registered under the
U.S. Securities Act of 1933, as amended (the "1933 Act") or
any applicable state securities laws and may not be offered or sold
in the United States or to, or for
the account or benefit of, U.S. persons (as defined in Regulation S
under the 1933 Act) or persons in the
United States absent registration or an applicable exemption
from such registration requirements. This press release does
not constitute an offer to sell or the solicitation of an offer to
buy nor will there be any sale of the foregoing securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful.
About Wealth Minerals Ltd.
Wealth's strategy is to acquire undervalued projects with low
exploration risk, attractive grades and potentially low capital
requirements. Management insist that projects be located in
stable and development-friendly geopolitical jurisdictions and that
capital required for development is not excessive within the
context of each commodity. The focus over the past few years
has been on the acquisition of precious metals projects. The
proposed acquisition of Li3 offers a new kind of opportunity where
helping to meet emerging lithium demand is expected to create
additional value for shareholders. The Company will also
continue to move forward with its existing precious metals
projects, such as Yanamina (Peru)
and Valsequillo (Mexico).
For further details on the Company readers are referred to the
Company's web site (www.wealthminerals.com) and its Canadian
regulatory filings on SEDAR at www.sedar.com.
On Behalf of the Board of Directors of
WEALTH MINERALS LTD.
"Hendrik van Alphen"
Hendrik
van Alphen
President & CEO
Neither 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 press release, which has been prepared by
management.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains forward-looking statements and
forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable Canadian and US
securities legislation. All statements, other than statements
of historical fact, included herein including, without limitation,
statements regarding the anticipated content, commencement, timing
and cost of exploration programs, anticipated exploration program
results, the discovery and delineation of mineral
deposits/resources/reserves, the anticipated completion of
the private placement and the proposed use of the proceeds thereof;
the Company's expectation that it will be able to enter into
agreements to acquire interests in additional mineral projects, the
anticipated securing of the acceptance for filing by the TSXV on
behalf of the Company of the Placement and the Debt Settlement, the
proposed acquisition by the Company of Li3 and the shares of Li3,
and thereby an interest in the Maricunga Lithium Project; the
proposed execution and delivery of the required formal
documentation in connection with the acquisition of Li3; the
completion of the acquisition of Li3, either as presently proposed
or at all, by the Company; the planned completion of a test work
program at the Maricunga Lithium Project; the completion of the
proposed financing which is a condition precedent to a transaction
with Li3, and the anticipated business plans and timing of future
activities of the Company, are forward-looking
statements. Although the Company believes that such
statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Forward-looking
statements are typically identified by words such as: believe,
expect, anticipate, intend, estimate, postulate and similar
expressions, or are those, which, by their nature, refer to future
events. The Company cautions investors that any
forward-looking statements by the Company are not guarantees of
future results or performance, and that actual results may differ
materially from those in forward looking statements as a result of
various factors, including, but not limited to, the state of
the financial markets for the Company's equity securities, the
state of the commodity markets generally, variations in the
nature, quality and quantity of any mineral deposits that may be
located, variations in the market price of any mineral products the
Company may produce or plan to produce, the inability of the
Company to obtain any necessary permits, consents or authorizations
required, including TSXV acceptance, for its planned activities,
the inability of the Company to produce minerals from its
properties successfully or profitably, to continue its projected
growth, to raise the necessary capital or to be fully able to
implement its business strategies, and other risks and
uncertainties disclosed in the Company's latest interim Management
Discussion and Analysis and filed with certain securities
commissions in Canada. All of the Company's Canadian public
disclosure filings may be accessed via
www.sedar.com and readers are urged to review these
materials, including the technical reports filed with respect to
the Company's mineral properties.
SOURCE Wealth Minerals Limited