ITEM 7.01 REGULATION FD DISCLOSURE
On February 16, 2017 we issued a news release announcing that we had signed a
LOI with Nevada Sunrise Gold Corp. ("NEV") with respect to our Salt Wells
lithium in brine prospect located in Churchill County Nevada.
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Under the terms of the agreement NEV (TSX-V - NEV, OTC - NVSGF) may earn a 100%
interest in the Property subject to a 2% Net Smelter Royalty (NSR) by making
staged payments of cash and shares over the next two years. The terms are;
* $10,000 non-refundable deposit on signing the LOI
* $15,000 & issue 400,000 common shares of NEV on the later of TSX-V
approval or the signing of a formal definitive agreement
* $50,000 & 500,000 shares - 1st anniversary
* $75,000 & 600,000 shares - 2nd anniversary
NEV will pay all claim and other property related fees during the earn-in phase
of the agreement, and will also retain the right to purchase one half (1%) of
the NSR at any time up until the third anniversary of the signing of the formal
agreement for $1,000,000. We conducted exploration on the Property that
culminated in a multiple phase - shallow direct push drilling program in 2011.
Results from that program were enigmatic, and with the then looming substantial
increase of Federal claim fees, it was decided to put the Property in abeyance
and concentrate elsewhere. The Company is looking forward to assisting NEV in
developing this prospect in any way that we can, and look forward to a
continuing association with them.
On March 2, 2017 we issued a news release announcing that we had signed a LOI
with Bormal Resources Inc. (the "Optionor") with respect to three
Tantalum-Niobium properties located in British Columbia, Canada (the
"Properties"). Lithium Corporation is to earn a 100% interest in the Properties
by furnishing to the Optionor:
1,000,000 common shares at signing of a formal agreement
750,000 common shares on 1st anniversary of the formal agreement
In consideration of the above Lithium Corporation will earn a full 100% interest
in the properties, subject to two separate 1% Net Smelter Royalties (NSR's) that
may be purchased at anytime for $500,000 each.
The Michael property in the Trail Creek Mining Division was originally staked to
cover one of the most compelling tantalum (Ta) in stream sediment anomalies as
seen in the government RGS database in British Columbia. Bormal conducted a
stream sediment sampling program in 2014, and determined that the
tantalum-niobium in stream sediment anomaly here is bona fide, and in the order
of 6 kilometers in length. In November of 2016 Lithium Corporation conducted a
short soil geochemistry orientation program on the property as part of its due
diligence, and determined that there are elevated levels of Niobium-Tantalum in
soils here.
Also in the general area of the Michael property the Yeehaw property has been
staked over a similar but lower amplitude Tantalum/REE in stream sediment
anomaly. Both properties are situated in the Eocene Coryell Batholith, and it is
thought that these anomalies may arise from either Carbonatite or Pegmatite type
deposits.
The third property - Three Valley Gap, is in the Revelstoke Mining Division and
is situated in a locale where several Nb-Ta enriched carbonatites have been
noted to occur. A brief field program by Bormal in 2015 located one of these
carbonatites, and concurrent soil sampling determined that the soils here are
enriched with Nb-Ta over the known carbonatite, and indicated that there are
other geochemical anomalies locally that may indicate that more carbonatites
exist here and are shallowly buried.