Fission 3.0 Corp. (“Fission 3” or the “Company”) is pleased to announce that, further to its news release on August 16, 2018, it has entered into a binding agreement (the “Earn-In Agreement”) with Rhyolite Lithium Corp. (“Rhyolite”), pursuant to which Rhyolite can earn up to an 80% interest in Fission 3’s mining concessions located in Peru (the “Peruvian Assets”) by spending up to C$22 million over a five-year period (the “Earn-In”).
Pursuant to the Earn-In Agreement, Rhyolite is required to spend a minimum of C$5.5 million prior to December 31, 2020 to earn a 50% interest in the Peruvian Assets (“Stage One“), and has the option to spend a further C$16.5 million over the following three years to earn an additional 30% interest in the Peruvian Assets (“Stage Two“). If Rhyolite does not complete Stage One, Rhyolite will earn no interest in the Peruvian Assets, and if it elects to begin, but does not complete, Stage 2, it will only be granted a portion of the additional 30% interest.
In connection with the entrance into the Earn-In Agreement, and as consideration for the Earn-In, Fission 3 was issued 19.9% of the issued and outstanding shares of Rhyolite and was granted a right to participate, on a pro rata basis, in all future financings of Rhyolite to maintain its proportionate interest in Rhyolite.
Fission 3 will remain the operator of the Peruvian Assets until the completion of Stage One.
CEO Dev Randhawa commented,
“The Macusani area has shown strong potential for both uranium and lithium resources, as demonstrated by the recent results of operators in the nearby and surrounding area. We are pleased to partner with Rhyolite Lithium, which has strong financial backers with the equity needed to fund important work programs on the Macusani Project. We believe that by working with Rhyolite we will unlock value for Fission 3 shareholders.”
About Fission 3’s Macusani Project
Macusani, Peru, is an emerging uranium and lithium district in a mining-friendly jurisdiction. The area is host to multiple uranium deposits that are large scale, near-to-surface and potentially heap-leachable – giving them a strong economic case. The region also hosts several near-surface lithium occurrences associated with uranium mineralization in the Yapamayo Member formation as well as higher-grade lithium in the underlying Sapanuta Member formation.
Fission 3 holds titles to 9 concessions totaling 5,100 ha in the Macusani district. The property is surrounded by Plateau Energy Metals Inc.’s land package including the Falchani high-grade lithium discovery located less than 5km to the south. The Macusani concessions are easily accessed by a series of paved roads from the City of Puno to the town of Macusani, which connects to the Interoceanic Highway, a two-lane, paved highway that passes 14km north-east of the property.
About Fission 3.0 Corp.
Fission 3.0 Corp. is a Canadian based resource company specializing in the strategic acquisition, exploration and development of uranium properties and is headquartered in Kelowna, British Columbia. Common Shares are listed on the TSX Venture Exchange under the symbol “FUU.”
Source: Fission 3.0