Marifil Successfully Modifies Lithium Properties Sales Agreement
SPOKANE, WASHINGTON -- (Marketwire) -- 10/20/10 -- MARIFIL MINES LTD. (TSX VENTURE: MFM) ('Marifil' or 'the Company') announces that it has successfully modified the sales agreement for its lithium properties to Renholn International, a private company ('Renholn') (see News Releases Dated August 12, 2010 and September 14, 2010).
Under the original agreement, Renholn had the right to purchase all of the Company's lithium claims in Salta and Catamarca Provinces, Argentina. The Mines Department in Salta Province notified the Company that two of its claims were invalid owing to an obscure technical problem. Renholn agreed to keep the sale agreement in good standing if Marifil would vend in one or more claims of equal value. Subsequently, the Company offered Renholn its Guayatayoc lithium claim in Jujuy Province. Renholn agreed to accept this claim in lieu of the two lost claims if Marifil would provide a NI 43-101 report on this claim. Marifil agreed to do so and expects to have this report finished by mid-November. All other terms of the original agreement remain in force.
Under the terms of the agreement Renholn agrees to pay Marifil $500,000 in cash at a rate of $125,000 on signing the agreement (which sum has been paid) and $125,000 per year for three years. Renholn further agrees to carry out the $2,250,000 minimum exploration programs recommended in the Company's NI 43-101 reports for these properties at the rate of $500,000 in Year 1; $750,000 in Year 2; and $1,000,000 in Year 3. Marifil shall retain a 3% Net Smelter Royalty.
Renholn shall have three years to obtain a listing on the London AIM market for itself or some other Company ('NEWCO-AIM') that will hold the lithium properties. At the date of the AIM listing, Renholn, or NEWCO-AIM, shall issue $4,500,000 worth of shares in NEWCO-AIM to Marifil at the same price as the initial offering price for such shares.
Mr. John Hite, President of Marifil states, 'We are appreciative of Renholn's attitude during this unfortunate episode and pleased that we were able to quickly reach an amicable settlement. Now we expect that Renholn will be moving forward aggressively to develop these important projects.'
This press release has been reviewed and approved by John Hite, President of Marifil Mines Ltd. under whose directions the exploration program is being carried out. Mr. Hite and Mr. Walters are Qualified Persons as defined by National Instrument 43-101.
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For further information regarding Marifil Mines Ltd., please refer to the Company's filings available on SEDAR (Http://www.sedar.com) or at Marifil's Website (Http://www.marifilmines.com).
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Contacts:
Marifil Mines Ltd.
John Hite
President
(208) 443-3198
www.marifilmines.com
Marifil Mines Ltd.
Hugh Oswald
Investor Relations
(604) 684-4743 ext. 243
hugh@ascentacapital.com