Bearing Resources Ltd. Provides Exploration Review and Transaction Update
Vancouver, February 22, 2017 - Bearing Resources Ltd. (TSXV: BRZ) (OTCQB: BRGRF) (FSE: B6K1) ("Bearing" or the "Company") is providing a review of the Phase 1 exploration activities and planned future programs at the Maricunga lithium brine project located in Chile (the "Maricunga Project"), in addition to an update on the acquisition of Li3 Energy Inc. ("Li3"). Bearing has entered into a definitive agreement to acquire Li3 and its interest in the Maricunga Project (the "Li3 Definitive Agreement"). Li3 currently holds a 17.7% interest in the Maricunga Project along with Minera Salar Blanco ("MSB") and Lithium Power International Ltd. ("Lithium Power") at 32.3% and 50% respectively pursuant to a joint venture arrangement (the "Joint Venture"). Under the terms of the Joint Venture, Lithium Power has agreed to fund exploration and development costs with both Li3 and MSB having a free carry until the completion of a definitive feasibility study. Maricunga Project - Phase 1 Exploration Activities Review
Overall the initial exploration phase delivered results that exceeded management expectations, with high-grade lithium brine encountered in drilling of all tenements ("old code" and Litio tenements) and to depths significantly deeper than intersected in previous drilling. It is important to note that all holes from the current exploration program terminated in lithium-bearing brine contained within a favorable lithological sequence.
Drilling on "old code" tenements delivered notable intercepts including average grades of 1,368 mg/L lithium and 9,468 mg/L potassium over 186 metres, with peak results as high as 3,375 mg/L lithium over 6 metres, from hole S6 drilled in the San Francisco tenement.
Results from deep drilling were also highly encouraging, as hole S18 drilled down to 360 metres on the "old code" Cocina tenement delivered average grades of 975 mg/L lithium and 7,273 mg/L potassium over 336 metres, with peak results as high has 1,614 mg/L lithium over 6 metres. Importantly, this deep hole highlights the potential for significant resource expansion as it was drilled to 360 metres compared to the majority of holes from the current program which were drilled to 200 metres, and terminated in lithium bearing grading an average of 877 mg/L over 6 metres.
Going forward, the Joint-Venture anticipates preparing an updated resource estimate in accordance with JORC in April / May with Bearing commissioning a concurrent updated resource estimate prepared in accordance with NI 43-101 within a similar timeline. Bearing has contracted Don Hains, P.Geo of Hains Engineering Company Limited to deliver both a redressed NI 43-101 in March and an updated resource estimate in Q2/17, the latter of which will incorporate the results from the Phase 1 exploration program. The second phase of exploration and development is anticipated to commence in Q2/17 and will include follow-up exploration and resource definition drilling, additional production tests, the construction of a pilot plant, the submission of an Economic Impact Assessment (EIA) report and the tabling of a Pre-Feasibility study (PFS), all anticipated by year-end 2017. Finally, the third phase will culminate in the delivery of a Definitive Feasibility study (DFS), anticipated by year-end 2018. Assuming completion of the transactions contemplated by the Li3 Definitive Agreement, Bearing will be fully-carried for all project expenditures through to the delivery of the DFS by the majority partner, Lithium Power, under the terms of the Joint Venture.
Results were previously released by Bearing wherein QA/QC details were provided. Robert Cameron, P.Geo., who is a technical consultant to the Company and is a qualified person within the context of National Instrument 43-101, has read and takes responsibility for this news release.
Li3 Energy Transaction Update
Pursuant to its news release dated January 31, 2017, Bearing and Li3 have entered into the Li3 Definitive Agreement. Bearing's management now wishes to provide an update on the status of the transaction. Given the added complexities of a cross-border merger, Bearing is currently completing the Form F-4 filing with the US Securities and Exchange Commission (SEC) which is required for the registration of certain securities by foreign issuers. The documentation is anticipated to be completed within a month and subsequently filed with the SEC. Upon filing and receipt by the SEC, the SEC has 30 days to provide comments on the Form F-4 which facilitates a mutual exchange between the SEC and the Company. Once the Form F-4 has been finalized, it will be distributed to Li3 shareholders with the transaction closing subsequent to shareholder approval. Management currently anticipates the transaction to close during the second quarter of 2017 (Q2/17).
About Bearing Resources Ltd.
Bearing is an exploration and development company. The Li3 Definitive Agreement will enable it to acquire an interest in the advanced-stage Maricunga project located in Chile, which represents one of the highest-grade development opportunities in the Americas. Assuming completion of the transactions contemplated by the Li3 Definitive Agreement, Bearing will have an undivided 17.7% interest in the project with all expenditures through to the delivery of a Definitive Feasibility Study (DFS) fully-funded by its joint-venture partners. The Maricunga Project has had in excess of US$25 million of exploration to date.
ON BEHALF OF THE BOARD
Signed "Jeremy Poirier"
Jeremy Poirier, Director President and CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
Jeremy Poirier-- President and CEO Bearing Resources - Telephone: 1-604-262-8835
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.
Cautionary Statements Regarding Forward Looking Information
This press release includes certain "forward-looking information" and "forward-looking statements"(collectively "forward-looking statements") within the meaning of applicable Canadian and United States securities legislation including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein, without limitation, statements relating the future operating or financial performance of the Company, are forward-looking statements.
Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. Forward-looking statements in this press release relate to, among other things: completion of the transactions contemplated by the Li3 Definitive Agreement, the benefits of the proposed transaction with Li3 to shareholders of Bearing, the completion of further exploration and Maricunga Project, future exploration results and the completion of technical reports on the Maricunga Project . Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and the parties have made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: completion of satisfactory due diligence by each of Bearing and Li3, , the absence of a material adverse change in the Maricunga Property, the receipt of all necessary regulatory and shareholder approvals to complete the proposed transaction with Li3 and results of future exploration activities . Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times. Except as required by law, Bearing does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.