Highlights:
- Large land position of approximately 26,300 acres
surrounding Silver Peak Mine owned and operated by the world's
largest lithium producer
- Lithium X to become the largest shareholder of Pure Energy,
holding 19.99% and appoint Board Member by way of the sale of
Clayton Valley South and NSP claims
and a Private Placement
- Pure Energy to leverage existing relationships and emerging
new processing technology across entire land package
VANCOUVER, May 11, 2017 /CNW/ - Lithium X Energy
Corp. (the "Company"(TSXV: LIX) (OTCQX: LIXXF)) is
pleased to announce that it has entered into Definitive Agreements
with Pure Energy Minerals Inc. ("Pure Energy") for the sale of its
interests in Nevada (the
"Sale"). In connection with the Sale, the Company is also
subscribing for 3.571 million units ("Units") of Pure Energy at a
price of C$0.56 for a total
subscription cost of C$2 million (the
"Subscription"). Each Unit consists of one Pure Energy common
share and one half of a common share purchase warrant, with each
whole warrant exercisable at a price of C$0.75. The Unit price represents a 9.8%
premium to yesterday's closing price of the Pure Energy common
shares. The subscription proceeds are expected to be spent
entirely on the development of the Nevada assets.
Brian Paes-Braga, CEO and a
Director of Lithium X, commented, "We are very pleased to partner
with Pure Energy to consolidate our Clayton Valley projects and
create the leading American lithium developer. I have a lot of
respect for what Patrick and his team have accomplished in
Nevada, and their success helped
inspire the founding of Lithium X. Lithium X is pleased to become
Pure Energy's largest shareholder, and participate in the
tremendous upside at Clayton Valley, which hosts North America's only primary producing lithium
brine."
Under the proposed Sale, the Company will be transferring to
Pure Energy, all its interests in Nevada, consisting of its option from Calyton
Valley Lithium Inc to acquire the Clayton Valley North project, and
its claims comprising the Clayton Valley South Expansion. The
Company's Nevada interests, when
combined with Pure Energy's Clayton Valley
South lithium brine project (consisting of approximately
4,450 hectares and having a 43-101 inferred mineral resource
containing approximately 816,000 metric tonnes of lithium carbonate
equivalent), will create a combined Clayton Valley project
consisting of more than 10,500 hectares (approximately 26,300
acres). (Refer to Figure 1: Clayton Valley Ownership Map,
which can also be found on the Company's website,
www.lithium-x.com.)
Under the Sale, the Company will receive 20.038 million Pure
Energy common shares and 2.022million share purchase warrants in
consideration for its Nevada
interests. Completion of the Sale and the Subscription will
result in the Company becoming the largest shareholder of Pure
Energy, holding 19.99% of the outstanding common shares, together
with share purchase warrants that, if exercised immediately, would
increase its interest to 22.5%.
In connection with these transactions, the Company and Pure
Energy will also enter into an investor rights agreement under
which, for a period of two years following completion of the
transactions: the Company will be subject to certain restrictions
on the disposition of its Pure Energy common shares and the Company
will vote its Pure Energy common shares in the manner recommended
by Pure Energy's management. In addition, so long as it
holds 5% or more of the outstanding Pure Energy common shares, the
Company will be entitled to appoint one director to Pure Energy's
board and to pre-emptive rights to maintain its interest on any
future proposed financing by Pure Energy.
Completion of the Sale and the Subscription is expected to occur
prior to the end of May, but is subject to usual closing
conditions, including receipt of all required regulatory and other
approvals.
Patrick Highsmith, CEO and
Director of Pure Energy, commented "This is an important step in
the consolidation of North
America's only productive lithium brine district. It is
exciting to team up with Lithium X in this fashion so that we can
leverage their business acumen alongside our technical expertise in
Clayton Valley. These new near-term growth targets on the Lithium X
properties will only enhance the potential value of the new lithium
processing technologies we have been advancing."
Clive Ashworth, CEO of
stated that "GeoXplor and Clayton Valley are delighted to
have helped facilitate this important new development. The
combined strengths of these two companies in Clayton Valley assures
its development into North
America's most important source of lithium."
On a related note, the Company further reports on its Phase 1
exploration program, led by GeoXplor Corp at its Clayton Valley
North Lithium Project. Hole LX-01 was drilled to a total
depth of 1,218 feet (371 metres) and intersected the targeted basal
gravel aquifer at an approximate depth of 938 feet (286 metres)
over a total vertical thickness of approximately 260 feet (79
metres). Additional aquifers were intercepted above the basal
gravel layer, including the main ash layer which is believed to be
one of the targeted production horizons of the neighbouring Silver
Peak mine wells. Brines were intercepted at various horizons,
with maximum lithium values of 61 mg/l encountered in the basal
gravel aquifer.
The technical information contained in this news release has
been reviewed and approved by Lithium X's Vice-President of Project
Development, William Randall, P.Geo,
who is a Qualified Person as defined under NI 43-101
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 its Clayton Valley project in Nevada. The Company's flagship project is the
Sal de los Angeles lithium brine project, in which it owns 50%
interest, with an option to acquire up to 80%. The project
consists of 8,154 hectares covering 95% 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.
Lithium X will also own 19.99% of Pure Energy Minerals, a
company exploring and developing a large land package surrounding
Albemarle's Silver Peak lithium mine in Clayton Valley,
Nevada.
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.