MGX Minerals Announces Unitization of Oil and Gas Leases and Addition of 70,000 Acres Overlying Lithium Brine Claims at Paradox
April 10 2017 - 10:51AM
InvestorsHub NewsWire
MGX Minerals Announces Unitization of Oil and Gas Leases and
Addition of 70,000 Acres Overlying Lithium Brine Claims at Paradox
Basin Utah
VANCOUVER, BRITISH COLUMBIA -- April 10, 2017 -- InvestorsHub
NewsWire -- MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / FKT: 1MG / OTC: MGXMF) is pleased to
provide a project development update for its Paradox Basin petrolithium project.
The Company has begun unitization of designated oil and gas leases
and the staking of overlying mineral claims located contiguous to
its Lisbon Valley mineral claims. The purpose of the unitization is
to eliminate property boundaries, pool mineral interests and
establish the Company’s private partner as unit operator. MGX now
controls more than 94,000 acres of combined oil and gas leases and
mineral claims in the State of Utah. MGX's North American Lithium
Brine claims now exceed 1.7M acres.
MGX and its Utah based partner have completed boundary surveying
and issued mailers to parties within the unit. Additionally, the
Company has submitted a permit to drill along with a surface use
plan of operations to the Bureau of Land Management (BLM). Previous
geological and seismic information is now under review and
preparations have commenced to conduct a 3-D seismic shoot to
understand both lithium and oil-bearing structures.
Consolidation through unitization of the oil and gas leases
represents the most efficient timelines and cost-effective means of
developing the area’s underlying resources.
Engineering of Oil, Gas, and Lithium Wells
MGX is currently in discussion with a US based engineering company
for drilling and operation of multi- zone wells optimized for
maximum flow of oil, gas, lithium and magnesium brine. MGX expects
a project scoping study shortly.
Acquisition of Additional Minerals Claims
MGX as part of the acquisition of mineral claims overlying its
recent oil and gas lease acquisition in the Paradox Basin 4,718
additional mineral claims were acquired. This expanded land
position adds 94,082 acres to the Company’s Paradise Basin
petrolithium project, increasing MGX’s total cumulative minerals
claims to approximately 118,000 acres (see Figure 1), which now
includes the majority of oil, gas, and brine mineral rights within
the area of interest.
Additionally, MGX reports it has amended the previously announced
payment schedule to acquire underlying oil and gas leases (see press release dated March 23,
2017). The amended payment schedule is as follows:
• Non-refundable deposit of $50,000 (paid)
• $500,000 on or before September 1, 2017
• $500,000 on or before March 1, 2018
• $500,000 on or before September 1, 2018
• $450,000 on or before March 1, 2019
Overview of Lisbon Valley Oilfield
MGX’s oil and gas leases overlie the Lisbon Valley oilfield located
approximately 40 miles southeast of Moab, Utah in the salt
anticline belt on the southwest edge of the Paradox Basin in
San Juan county. Historic lithium brine content has been reported
as high as 730 parts per million lithium (Superior Oil 88-21P)
at Lisbon Valley. The region is also home to the former
Rio Algom uranium mill facility, an active copper mine
operated by Lisbon Valley Mining Company, and a natural gas
processing plant.
Figure 1. MGX Minerals’ Cumulative Lisbon Valley Mineral Claims
Qualified Person
The technical portions of this press release were prepared and
reviewed by Andris Kikauka (P. Geo.), Vice President of
Exploration for MGX Minerals. Mr. Kikauka is a
non-independent Qualified Person within the meaning of
National Instrument (N.I.) 43-101 Standards.
MGX is advancing its petrolithium projects into production without
first establishing mineral resources supported by an
independent technical report or completing a feasibility study.
A production decision without the benefit of a technical
report independently establishing mineral resources or
reserves and any feasibility study demonstrating economic and
technical viability creates increased uncertainty and
heightens economic and technical risks of failure.
Historically, such projects have a much higher risk of
economic or technical failure.
About MGX Minerals
MGX Minerals is a diversified Canadian mining company engaged in
the development of largescale industrial mineral portfolios in
western Canada and the United States. The Company operates lithium,
magnesium and silicon projects throughout British Columbia and
Alberta as well as petrolithium exploration in Utah. Learn
more at www.mgxminerals.com.
Contact Information
Jared Lazerson
President and CEO
Telephone: 1.604.681.7735
Web: www.mgxminerals.com
Neither the Canadian Securities Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
Canadian Securities Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Forward-Looking Statements
This press release contains forward-looking information or
forward-looking statements including the completion of the rights
offering (collectively "forward-looking information") within the
meaning of applicable securities laws. Forward-looking information
is typically identified by words such as: "believe", "expect",
"anticipate", "intend", "estimate", "potentially" and similar
expressions, or are those, which, by their nature, refer to future
events. The Company cautions investors that any
forward-looking information provided by the Company is not a
guarantee of future results or performance, and that actual results
may differ materially from those in forward-looking
information as a result of various factors. The reader is
referred to the Company's public filings for a more complete
discussion of such risk factors and their potential effects
which may be accessed through the Company's profile on SEDAR
at www.sedar.com.
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