Wealth Minerals Ltd.

WML - TSX.V $1.83


Wealth Minerals has executed a Letter of Intent (the “LOI”) dated August 2, 2016 to enter into an option agreement giving it the right to acquire a 100% royalty-free interest in 144 exploration concessions (the “Concessions”) referred to as the “Proyecto Atacama Lithium” and located in the Atacama Salar in Region II of Antofagasta, northern Chile.

The Atacama Salar is the World’s highest grade and largest producing lithium brine deposit, and currently produces approximately one third of global lithium output from two production facilities operated by Sociedad Quimica y Minera (“SQM”) and Rockwood Lithium. Atacama possesses a very high grade of both lithium (1,840mg/l) and potassium (22,630mg/l), has a high rate of evaporation (3,200 mm per year) and extremely low annual rainfall (15mm average per year). These characteristics make Atacama's finished lithium carbonate easier and cheaper to produce than its peer group globally. A key factor in lithium production costs is evaporation time and Atacama Salar’s evaporation rate is the highest in the lithium industry. It is adjacent to International Highway 23, which connects northern Chile and Argentina.

Comparison of Certain Characteristics of Selected Major Salars

Salar de
Salar de
Salar de
Salar de
Salar de
Country Chile Chile Argentina Argentina Argentina
Lithium (mg/l) 1,840 1,250 690 740 590
Potassium (mg/l) 22,630 8,970 5,730 7,400 4,850
Magnesium (mg/l) 11,740 8,280 1,660 1,020 1,420
Mg/Li 6.40 6.63 2.40 1.40 2.43
K/Li 12.33 7.18 8.30 9.95 8.30
K/Mg 1.93 1.08 3.46 7.26 3.58

The Concessions cover an area of approximately 46,200 hectares located in the northern portion of the Salar de Atacama and are contiguous with concessions owned by BHP Billiton, SQM, and CORFO (the Chilean Economic Development Agency). Both SQM and Rockwood have large-scale production facilities in the salar, located on the ground held by CORFO, which collectively produce over 62,000 tonnes of Lithium Carbonate Equivalent annually and account for 100% of Chile’s current lithium output.

Wealth’s newly acquired Atacama Project. SQM and Albemarle
both produce lithium carbonate from concessions held by CORFO.

Under the LOI, subject to the completion of certain conditions precedent, including TSX Venture Exchange acceptance, Wealth would be granted the exclusive option to acquire a 100% royalty-free interest in the Concessions from the arm’s length vendor (a private Chilean company) (“Vendor”) by making the following payments, and issuing the following fully paid and non-assessable common shares, to the Vendor:

Date Cash Payment Share Issuance
Upon Signing Formal Option Agreement USD 3,000,000 2,000,000 WML shares
Eight (8) months after signing USD 3,000,000 4,000,000 WML shares
Sixteen (16) months after signing USD 3,000,000 4,000,000 WML shares
Twenty-eight (28) months after signing USD 5,000,000 5,000,000 WML shares

While there is lithium production from the Atacama Salar, the Concessions have had only very limited exploration work completed. Exploration will be required so that any potential resources can be identified and fully evaluated and quantified. Accordingly, the initial program to be carried out by the Company at the Concessions will consist of a program of prospecting and sampling to determine the existence, nature, extent and distribution of lithium on the Concessions.