TORONTO, April 25, 2018 /CNW/ - Namibian lithium developer
and emerging lithium concentrate producer Desert Lion Energy Inc.
(TSXV: DLI) ("Desert Lion" or the "Company") is
pleased to announce that it has delivered the first shipment of
lithium concentrate product to the port of Walvis Bay in
Namibia in accordance with the
terms of its offtake agreement (the "Offtake Agreement")
with Chinese lepidolite converter and offtake partner Jiangxi
Jinhui Lithium Co. Limited ("Jinhui"). The first
shipment is expected to be approximately 30,000 tonnes (t) of
lithium concentrate material, which will generate gross revenues of
approximately $3.8 million for the
Company.
Under the terms of the Offtake Agreement Jinhui is required to
purchase all lithium concentrate product from Phase 1 of the
Company's production plan, which the Company estimates to be
approximately 150,000t – 160,000t of lithium concentrate for the 12
to 18 month period.
Payment for this shipment has been collateralized by the
delivery of an irrevocable and unconditional letter of credit by
Jinhui in favour of Desert Lion in an amount equal to 110% of the
purchase price of the shipment.
"The delivery of the first shipment of lithium concentrate
represents a significant milestone for Desert Lion, which
demonstrates the production chain is operational from reclaiming,
sorting and processing all the way through to delivery of product
to our offtake partner at the port of Walvis Bay," commented
Tim Johnston, President and Chief
Executive Officer of Desert Lion. "We look forward to continuing to
execute this phase of production, while moving towards the
production of higher value products and large-scale mining in the
second half of 2018/2019."
The Company plans to publish a mineral resource estimate and
preliminary economic assessment in respect of the Company's lithium
project in Namibia (the
"Project") in the second quarter of 2018.
Qualified Persons Consent
Tim Johnston, CPEng, President
and Chief Executive Officer of the Company, and a Qualified Person
as defined by National Instrument 43-101 has reviewed and approved
the scientific and technical information contained in this news
release and was responsible for verifying the data herein.
About Desert Lion Energy
Desert Lion Energy is an emerging lithium development company
focused on building Namibia's
first large-scale lithium mine to be located approximately 210 km
from the nation's capital of Windhoek. The Company's Rubicon and Helikon
mines are located within a 301 km2 prospective land
package, with known lithium bearing pegmatitic mineralization and
the Company is currently in Phase 1 of its production plan,
producing and exporting lithium concentrate from stockpiled
material. The project site is accessible year-round by road and has
access to power, water, rail, port, airport and communication
infrastructure.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking information"
within the meaning of applicable securities laws. Generally, any
statements that are not historical facts may contain
forward-looking information, and forward-looking information can be
identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget"
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or indicates that certain actions, events or results
"may", "could", "would", "might" or "will be" taken, "occur" or "be
achieved." Forward-looking information includes, but is not limited
to: statements and expectations regarding the size of the initial
shipment under the Offtake Agreement, the exercise of the
conversion option by Jinuui pursuant to the Offtake Agreement, the
anticipated timeline for publication of the mineral resource
estimate and preliminary economic assessment; and the Company's
planned work program for the Project and its exploration and
development schedule and timetable.
Forward-looking information is based on certain factors and
assumptions management believes to be reasonable at the time
such statements are made, including but not limited to, continued
exploration activities, lithium and other metal prices, the
estimation of initial and sustaining capital requirements, the
estimation of labour and production costs, the estimation of
mineral reserves and resources, assumptions with respect to
currency fluctuations, the timing and amount of future exploration
and development expenditures, receipt of required regulatory
approvals, the availability of necessary financing for the Project,
permitting and such other assumptions and factors as set out
herein.
Forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of the
Company to be materially different from those expressed or implied
by such forward-looking information, including but not limited to:
risks related to changes in lithium prices; sources and cost of
power and water for the Project; the estimation of initial capital
requirements; the lack of historical operations; the estimation of
labour and operating costs; general global markets and economic
conditions; risks associated with exploration, development and
operations of mineral deposits; the estimation of initial targeted
mineral resource tonnage and grade for the Project; risks
associated with uninsurable risks arising during the course of
exploration, development and production; risks associated with
currency fluctuations; environmental risks; competition faced in
securing experienced personnel; access to adequate infrastructure
to support exploration activities; risks associated with changes in
the mining regulatory regime governing the Company and the Project;
completion of the environmental assessment process; risks related
to regulatory and permitting delays; risks related to potential
conflicts of interest; the reliance on key personnel; financing,
capitalization and liquidity risks including the risk that the
financing necessary to fund continued exploration and development
activities at the Project may not be available on satisfactory
terms, or at all; the risk of potential dilution through the
issuance of additional common shares of the Company; the risk of
litigation.
Although the Company has attempted to identify important
factors that cause results not to be as anticipated, estimated or
intended, there can be no assurance that such forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance
on forward-looking information. Forward-looking information is made
as of the date of this presentation and the Company does not
undertake to update or revise any forward-looking information this
is included herein, except in accordance with applicable securities
laws.
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 Note Regarding Potential Quantity of Stockpiled
Material
The potential quantity of stockpiled material located on the
property as disclosed herein is an estimate only and is conceptual
in nature; there has been insufficient exploration to define a
mineral resource and it is uncertain if further work will result in
this estimate being delineated as a mineral resource. Estimates
provided are based on initial prospecting work completed by the
Company.
SOURCE Desert Lion Energy