Vancouver, British Columbia–(Newsfile Corp. – July 24, 2017) – Rheingold Exploration Corp. (CSE:RGE) (“Rheingold” or the “Company”) — a company currently focused on the exploration and development of natural resource projects targeting metals used in the manufacturing of traditional and innovative batteries, has entered into an Option and Purchase and Sale Agreement with Woodbury Resources, LLC of Denver, Colorado and Bi-Petro, Inc. of Springfield, Illinois, whereby Rheingold has an option to purchase the oil and gas leases located primarily in Cumberland and Jasper Counties, Illinois (“Option Agreement”).
The Option Agreement allows Rheingold to purchase 37,500 acres previously leased for oil, gas and lithium extraction by Woodbury and Bi-Petro in the ‘Woodbury Carper Lithium Resource Project’. The Project represents a lithium resource development opportunity at shallow drilling depths (less than 4,000 feet) in the heartland of the United States, located on fee acreage that is easy to permit and drill, with several existing wells capable of producing large volumes of lithium-rich brine.
Total option purchase price, subject to the Company completing its due diligence, is US$8.0 million, Payable as follows:
- $100 on signing
- $99,900 in 90 days from signing
- $2,000,000 in 6 months from signing, of which the Company may make ½ in Shares
- $2,000,000 in 12 months from signing, of which the Company may make ½ in Shares
- $3,900,000 in 17 months from signing, of which the Company may make ½ in Shares
Hunter Stuart Energy Advisors has previously been hired by Rheingold to locate prospective lithium properties for the Company. Clifford C. Clark, a geologist working with Hunter Stuart Energy Advisors states: “The Carper Sandstone is a known oil and gas producing zone in the State of Illinois with several hundred wells that have produced oil from the Carper. The optioned property covers an accumulation of Mississippian-age Carper Sandstone that was deposited in an ancient delta referred to as the ‘Woodbury Carper Delta’.”
“The lithium was discovered as a result of drilling three exploratory wells in the search for oil and gas from the New Albany Shale and Carper Sandstone. All three wells had significant shows of oil in the Carper Sandstone at 3,600-3,800 feet and shows of gas in the New Albany Shale at 4,000-4,100 feet, which led the operator to set production casing and test the wells,” explains Clark.
Clark continues: “Two wells that are included in the assets under the Option Agreement have produced brine from the Carper Sandstone that have been tested for lithium content (tests are not NI 43-101 compliant). The lithium readings from known and credible laboratories were measured at 108 ppm and 243 ppm . The Carper brine from the #1 Swim Well measured at 108 ppm lithium in a test performed by XENCO Labs of Midland, Texas, an accredited laboratory, using EPA6010B methods. The Carper brine from the #2 Holsapple Well measured at 243 ppm lithium in a test performed by TechLabUSA in Ft. Collins, Colorado, also an accredited laboratory using EPA6010B methods.”
Clark believes more testing using advanced methods for determining lithium content is needed to more precisely determine the lithium content of the brine on the optioned properties. Clark concludes: “The leasehold is located in a rural area that has existing road, electrical, and natural gas infrastructure in place. This project is privately owned land and it takes less than a month to get a drilling permit versus sometimes up to years to get a permit on Federal Lands. Assets that would be included under the Option Agreement, and are located in Cumberland County, Illinois, include three wells of which two are producing and the third is not yet completed. It is significant to note that the optioned land has a permitted salt water disposal well, which may be used to dispose of the brines.”
Rheingold’s president, Logan Anderson adds that, “Rheingold is extremely pleased that the Hunter Stuart team, utilizing their experience and database of oil field brine data from over 100,000 wells, has negotiated this option on a highly prospective lithium property in an area of the United States that has immediate access to all of the services needed.”
The technical portions of this press release were prepared by Clifford C. Clark a Licensed Professional Geologist (State of Illinois) and reviewed by Fred J. Bonner P.Geo., a Director of Rheingold and a Qualified Person as defined under NI 43-101.
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ON BEHALF OF THE BOARD
Logan Anderson, President
This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of the Company and certain of the plans and objectives of the Company with respect to the same. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
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