VANCOUVER, Oct. 4, 2017 /CNW/ - Lithium X Energy
Corp. (TSXV: LIX) (OTCQX: LIXXF) ("Lithium X" or the
"Company") is pleased to announce it has successfully completed the
consolidation of the Sal de los Angeles ("SDLA") project so that it
now controls 100% of the mineral titles contained within the brine
bearing regions of the Diablillos basin. The consolidation involved
the acquisition of 2,700 hectares of claims from Borax Argentina
S.A. ("Borax") replacing the usufruct Lithium rights previously
held by the Company over the Borax claims and an agreement to
acquire a further 700 hectares currently owned by South American
Salars S.A. ("SAS") for a total consideration of 650,000 common
shares of Lithium X, USD $1,000,000
and a 1% Net Revenue Royalty (NRR) over the SDLA project.
Brian Paes-Braga, President &
CEO remarks "The execution of these agreements, coupled with the
earlier purchase of Aberdeen's
portion of Potasio y Litio de Argentina, will ultimately give
Lithium X one hundred percent ownership of the Diablillos basin.
This significantly simplifies and de-risks potential future
development of the salar."
Summary of Borax Argentina and South American Salars
Agreement
Since Q3, 2016 Lithium X has been working on consolidating the
brine bearing areas within the SDLA project by acquiring the
remaining mineral claims held by Borax and SAS. The
Company has successfully entered into agreements (the
"Orocobre Agreements") with Borax, SAS and their parent company,
Orocobre Limited ("Orocobre"), to acquire mineral title as opposed
to the usufruct Lithium rights previously held by Lithium X over
the Borax claims, and an agreement to acquire 100% of the rights to
the SAS claims, subject to certain conditions, for aggregate
consideration of US$1,000,000,
650,000 common shares and a 1% NRR over the SDLA project.
(Refer to Figure 1 : Sal de los Angeles Project).
The Orocobre Agreements, entered into by Lithium X, its
wholly-owned subsidiary, Potasio y Litio de Argentina S.A. ("PLASA"), Orocobre and its
subsidiaries, Borax and SAS, provide for the following
transactions:
- PLASA acquires mineral title to the Borax claims, conceding a
usufruct right in favour of Borax over the Borax claims in relation
to the surface ulexite mineralization;
- PLASA agrees to pay to Borax consideration of US$250,000 and to issue 650,000 common shares of
Lithium X to Borax or its nominee;
- PLASA to acquire the SAS claims for consideration of
US$750,000 upon certain conditions
being met by SAS; and
- PLASA and Borax agree to cancel the existing 1.5% royalty on
the Borax held tenements, in consideration of a 1% Net Revenue
Royalty over the entire SDLA project; and
- Orocobre and PLASA mutually release each other from any
potential or existing claims due to past activities by either
party.
The Orocobre Agreements result in Lithium X, through its
subsidiary PLASA, being the sole owner of all mineral titles on the
salar and covers the entirety of the known brine-bearing aquifers.
The Orocobre Agreements also include other provisions related
to artesian brine management, which is the source of brine for the
Initial Ponding Facility. The artesian brine will be captured,
pumped and piped to the Initial Ponding Facility evaporation ponds
where it will undergo evaporation-based metallurgical
processing.
The Orocobre Agreements are subject to certain conditions
including, but not limited to, receipt of all necessary approvals,
including the approval of the TSX Venture Exchange.
About Lithium X Energy Corp.
Lithium X Energy Corp. is a lithium exploration and development
company with a goal of becoming a low-cost supplier for the
burgeoning lithium battery industry. The Company holds two
projects in in the prolific "Lithium Triangle" in mining friendly
Salta province, Argentina as well as participating in the Clayton
Valley in Nevada through its
ownership interest in Pure Energy Minerals ("Pure Energy"). The
Company's wholly-owned flagship project is the Sal de los Angeles
lithium brine project. Subject to the completion of the
Orocobre Agreements, the project consists of 8,854 hectares
covering 100% of Salar de Diablillos, and has a 43-101 mineral
resource estimate of 1.037 million tonnes of lithium carbonate
equivalent in the indicated category and 1.007 million tonnes of
lithium carbonate equivalent in the inferred category. The
Company's second Argentinian project, the Arizaro lithium brine
project, consists of 33,846 hectares covering part of the western
and eastern portions of the Salar de Azario, one of the largest
known salt lakes in the world. In Nevada, the Company
consolidated its Clayton Valley holdings with those held by Pure
Energy, in the process becoming Pure Energy's largest shareholder,
holding 19.9% of Pure Energy's outstanding common shares and share
purchase warrants that, if exercised immediately, would increase
its ownership interest to 22.5%. Pure Energy's combined holdings in
Clayton Valley consist of more than 10,500 hectares (approximately
26,300 acres).
For additional information about Lithium X Energy Corp., please
visit the Company's website at www.lithium-x.com or review the
Company's documents filed on www.sedar.com. Join the
Company's email list at http://lithium-x.com/subscribe.
ON BEHALF OF THE BOARD OF DIRECTORS
Paul
Matysek
Executive Chairman
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 news release.
This news release contains certain forward-looking
information and forward-looking statements within the meaning of
applicable securities legislation (collectively "forward-looking
statements"). Certain information contained herein constitutes
"forward-looking information" under Canadian securities
legislation. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as
"expects", "believes", "aims to", "plans to" or "intends to" or
variations of such words and phrases or statements that certain
actions, events or results "will" occur. Such information includes,
but is not limited to the use of proceeds from the Offering.
Forward-looking statements are based on the opinions and estimates
of management as of the date such statements are made and they are
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 by such forward-looking statements or
forward-looking information, including the business of the Company,
the speculative nature of mineral exploration and development,
fluctuating commodity prices, competitive risks, and delay,
inability to complete a financing or failure to receive regulatory
approvals. Although management of the Company has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements or forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements and forward looking information. The Company does not
undertake to update any forward-looking statements or
forward-looking information that are incorporated by reference
herein, except as required by applicable securities
laws.
SOURCE Lithium X Energy Corp.