Toronto, Ontario, December 4, 2014: Rodinia Lithium Inc. (“Rodinia” or the “Company”) (TSX-V: RM), announces as a result of a review of the Company’s disclosure record by the Ontario Securities Commission (the “OSC”), the Company is issuing this news release to clarify certain disclosure made by the Company with respect to its technical report entitled, “Preliminary Economic Assessment, Salar de Diablillos Project, Salta, Argentina” dated December 22, 2011 prepared for the Company by SRK Consulting (U.S.) Inc. (the “Technical Report”).
The Company notes that the Technical Report and certain of its investor presentation materials on its website referring to the Technical Report did not include an analysis of after tax economics as required by National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). Accordingly, the Company provides the following summary of the applicable provincial and federal taxes applicable to the Diablillos property, located in Salta, Argentina. Generally speaking, applicable taxes for mining in the Puna region of Salta, Argentina as subject to a federal income tax rate of 35% and export duties, or retentions, of 5% on industrialized products that are exported from the country. However, as per certain resolutions passed by the Argentine Federal Ministry of Economy, lithium, lithium oxide, lithium hydroxide, lithium carbonate and lithium chloride are subject to a special benefit which provides a 5% reimbursement of value of exports of such products extracted from the Puna Region in the Province of Salta. In addition, the Company would be subject to royalties in the amount of 3% payable to the Province of Salta.
Generally speaking, Law Nº 24,196, known as the Federal Mining Investments Promotion Law in Argentina grants several privileges to mining companies registered with the Federal Mining Secretariat. As the Company’s wholly-owned subsidiary which holds the property is registered pursuant to Law Nº 24,196 with the Federal Mining Secretariat, the Company has the benefit of a tax stability regime which provides that for thirty (30) years from the date a feasibility is filed a company will only be subject to the federal, provincial and municipal taxes in effect at the time of filing and that any increase in tax rates or new taxes will not apply to a company so registered. In addition, by virtue of being registered with the Federal Mining Secretariat: (i) sums invested in prospecting, exploration and in any other expenses necessary to determine the feasibility of the project incurred before the filing of the feasibility study enjoy double deductibility; (ii) accelerated depreciation regime is applicable to new mining projects and to the enlargement of the existing ones, as well as all the capital investments made during exploitation; (iii) profits that its shareholders may gain from the contribution of mines or mining rights as capital are exempt from income tax; and (iv) investors may capitalize up to fifty percent (50%) of the assessment of economically exploitable mining reserves certified by an authorized professional.
About Rodinia Lithium Inc.:
Rodinia Lithium Inc. is a Canadian mineral exploration and development company with a primary focus on Lithium exploration and development in Argentina. The Company is also actively exploring the commercialization of a significant Potash co-product that is expected to be recoverable through the lithium harvesting process.
Please visit the Company’s web site at www.rodinialithium.com or write us at email@example.com.
For further information please contact
President and Chief Executive Officer
Tel: +1 (416) 309-2697
Except for statements of historical fact contained herein, the information in this press release may be deemed to constitute “forward-looking information” within the meaning of Canadian securities law. Such forward-looking information may include, without limitation, statements (express or implied) regarding the shares for debt settlement, anticipated timing and results of the development of the Diablillos property and the ability of the Company to complete a strategic transaction. There can be no assurance that such statements (express or implied) will prove to be accurate, and actual results and future events could differ materially from such statements. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
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