VANCOUVER, BC / ACCESSWIRE / March 29, 2017 / PORTOFINO RESOURCES INC. (POR.V) ("Portofino" or the "Company") is pleased to announce that it has executed a letter of intent agreement with a private Argentine concession owner to acquire up to an 85% interest in two lithium brine salar projects in Catamarca, Argentina. Each project is approximately 3,000 hectares in size. Catamarca, located within the "Lithium Triangle" produces more lithium than any other province in Argentina.
Project 1 is located directly southwest of the Salar del Hombre Muerto where FMC Lithium is producing lithium carbonate and Galaxy Resources is developing its Sal de Vida project, and is southeast of Albemarle's Antofalla project.
Project 2 is located approximately 10 kilometres ("km") from the Chile border and north of Neo Lithium Corp's 3Q project.
Historical (2012) exploration work commissioned by the vendor of both projects included geological mapping, sampling of surface waters, auger sampling of brines, and compilation of the distribution of Lithium and Potassium grades within the basins. Eight surface water and 51 auger brine samples were analyzed and results averaged: 257 mg/l of Lithium and 8,710 mg/l of Potassium for Project 1; 274 mg/l of Lithium and 7,521 mg/l Potassium for Project 2.
The Company and its Qualified Professionals have been unable to verify the historical sample collection methodology or analytical results, but believe the historical results are relevant. Future work by Portofino, including a surface water and auger brine sampling program is required to verify the historical results.
Portofino has been introduced to the project owner by Centurion Minerals Ltd. (CTN:TSX-V). Centurion has established a mining and exploration presence in Argentina by way of its interest in the Ana Sofia agri-gypsum fertilizer operation in Santiago del Estero province. Centurion will act as the operator of the Catamarca lithium-brine projects. In exchange, Centurion is to be initially compensated up to $75,000 by Portofino, issued 500,000 shares of Portofino and be granted 10% of Portofino's interest (carried to PEA) in both projects.
Portofino has agreed to pay the Lithium project vendor a combination of cash, shares and expenditures over a 4-year period as follows:
An initial US$10,000 deposit,
By the first anniversary of TSX-V Exchange approval, issue 500,000 shares and pay US$50,000,
By the 2nd anniversary of approval, issue 500,000 shares, pay US$100,000 and complete a cumulative $500,000 of property expenditures,
By the 3rd anniversary, issue 500,000 shares, pay US$200,000, complete a cumulative minimum of $2million expenditures,
By the 4th anniversary, issue 500,000 shares, pay US$400,000, complete a cumulative minimum of $4million or a Preliminary Economic Assessment (PEA)
Subject to completion of the 4th year requirements, Portofino has the right to convert the Vendor's remaining 15% interest to a 2% NSR with an option to buy out 1% for $1 million.
The transaction is subject to completion of due diligence, execution of definitive agreements and TSX-V exchange approval.
The technical content of this news release has been reviewed and approved by Andrew J. Turner, B.Sc., P.Geol. of APEX Geoscience Ltd., who is the Company's Geological Consultant and is a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.
Portofino announces it has arranged a non-brokered private placement for up to $600,000 priced at $.05/Unit. Each Unit consists of one common share and one 2-year common share purchase warrant exercisable at $.08. Closing will be subject to TSX Venture Exchange approval and any shares issued will be subject to a four-month hold period. The Company contemplates that various exemptions will be utilized pursuant to this financing and it may rely upon the suitability advice exemption (B.C. Instrument 45-536) for a portion thereof. There is no material fact or material change that has not been generally disclosed. Proceeds from this financing shall be used by the Company for projects due diligence, and for general corporate purposes.
About Portofino Resources Inc.
Portofino is a Vancouver, Canada based Company focused on acquiring, exploring and developing mineral resource projects in the Americas.
On Behalf of the Board,
"David G. Tafel"
Chief Executive Officer
For Further Information Contact:
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.
This news release may contain forward looking statements concerning future operations of Portofino Resources Inc. (the "Company"). All forward- looking statements concerning the Company's future plans and operations, including management's assessment of the Company's project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond the Company's control. Investors are cautioned that any such statements are not guarantees of future performance and that actual performance and exploration and financial results may differ materially from any estimates or projections.
SOURCE: Portofino Resources, Inc.