Etna Resources Inc.: Corporate Update
30 October 2009 - 1:16AM
Marketwired
Etna Resources Inc. ("Etna") (TSX VENTURE: ETN) is pleased to
provide the following corporate update with respect to the
previously announced transaction pursuant to the Amended and
Restated Securities Exchange Agreement dated October 18, 2009 with
South American Lithium Company S.A. Cerrada ("SALICO"), Sociedad
Gareste Limitada ("Gareste") and PGM International S.A. Cerrada.
Etna continues to make progress on the satisfaction of the
necessary conditions of closing required to consummate the
transaction. To this effect, on October 16, 2009, Etna filed
documents with the TSX Venture Exchange in anticipation of
receiving final regulatory approval of the transaction, which
documents included a National Instrument 43-101 compliant technical
report for nine lithium salar projects in Chile (the "NI 43-101
Report"), a title opinion for the properties to be acquired, a
financial plan, and a finder's fee agreement. Additionally, Etna is
working towards closing the previously announced non-brokered
private placement financing of up to $3,000,000.
Upon closing of the Amended and Restated Securities Exchange
Agreement, Etna will obtain 99% of SALICO which, in turn, holds
interests in a total of nine lithium salars in Chile as set out in
the table below. The existing portfolio of rights in the nine
salars to be acquired includes surface brine lakes or surface flow
at Laguna Verde, Lagunas Bravas and Rio Salado/Pedernales, and six
additional lithium brine projects, all located in the mineral-rich
Atacama Region III. Following the closing of the acquisition, Etna
anticipates concentrating its initial efforts on the brine lake at
the Laguna Verde salar, which is the primary focus of the NI 43-101
Report. The rights in these nine lithium salars cover a cumulative
area in excess of 13,000 hectares, all accessible via serviceable
roads. It is believed that the salars collectively carry the
potential to host lithium in three distinct brine types: surface
water, shallow and deep brines.
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Name of Salar Hectares Acquired Property Rights held by SALICO
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Lagunas Jilgueros 1,100 100% of concessions
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Lagunas Bravas 1,100 100% of concessions
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Salar Ignorado 600 100% of concessions
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Salar de Wheel Wright 1,200 100% of concessions
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Laguna Escondida 900 100% of concessions
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Rio de la Sal/Pedernales 900 100% of concessions
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Laguna Verde 3,400 100% of concessions
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La Laguna 400 100% of concessions
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Salar Piedra Parada 3,600(1) Contractual rights to exploit
lithium, light metals and
commercial salts(1)
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(1) SALICO has been granted contractual rights from Gareste to extract and
exploit lithium, light metals and commercial salts with respect to
Salar Piedra Parada; Gareste owns senior mineral concessions at Piedra
Parada on over 2,100 hectares, and has overstaked concessions on 1,500
additional hectares at Piedra Parada which are subject to the senior
rights of a third party.
ETNA RESOURCES INC.
Jerry A. Minni, Director & Chief Financial Officer
This press release contains projections and forward-looking
information that involve various risks and uncertainties regarding
future events. Such forward-looking information can include without
limitation statements based on current expectations involving a
number of risks and uncertainties and are not guarantees of future
performance of the Company such as the statement that: (i) the
closing of the financing may occur; (ii) the closing of the Amended
and Restated Securities Exchange Agreement may occur; (iii) the
Company may concentrate on the Laguna Verde salar; and (iv) the
belief that the salars may carry the potential to host lithium in
three distinct brines types. There are numerous risks and
uncertainties that could cause actual results and the Company's
plans and objectives to differ materially from those expressed in
the forward-looking information, including: (i) the inability to
obtain Exchange approval and close the acquisition and financing
for any reason; (ii) adverse market conditions; (iii) a decrease in
demand for and the price of lithium; (iv) risks associated with
title to property interests; (v) political risks involving Chile,
including changes to legislation affecting mineral exploration and
development activities; and (vi) general uncertainties with respect
to mineral exploration in general. Actual results and future events
could differ materially from those anticipated in such information.
These and all subsequent written and oral forward-looking
information are based on estimates and opinions of management on
the dates they are made and are expressly qualified in their
entirety by this notice.
THIS NEWS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES IN THE UNITED
STATES. THE SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
"U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND MAY NOT BE
OFFERED OR SOLD WITHIN THE UNITED STATES OR TO "U.S. PERSONS", AS
SUCH TERM IS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT,
UNLESS AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS
AVAILABLE.
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 release.
Contacts: Etna Resources Inc. Jerry A. Minni Director &
Chief Financial Officer 604-683-8610
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