VANCOUVER, June 29, 2017 /CNW/ - Lithium X Energy Corp.
(the "Company"(TSXV: LIX) (OTCQX: LIXXF)) is pleased to
announce that it has entered into a definitive agreement with
Aberdeen International Inc. ("Aberdeen") for the purchase of
Aberdeen's remaining 50% interest
in Potasio y Litio de Argentina S.A.
(PLASA) which controls 100% of the Sal de los Angeles Project
(the "Acquisition").
The Company originally acquired from Aberdeen a 50% interest in the Sal de los
Angeles Project, together with an option to acquire an additional
30% interest (for a total interest of 80%) upon completion of a
feasibility study and issuance to Aberdeen of $5
million in common shares of the Company ("Lithium X
Shares").
Under the Acquisition, the Company will be acquiring
Aberdeen's remaining 50% interest
in the in the Sal de los Angeles Project by paying to Aberdeen $5
million in cash and issuing 6 million Lithium X
Shares. In addition, if within three years following the
closing, the Lithium X Shares have a volume weighted average
trading price of $3.00 or more during
a period of 20 consecutive trading days, the Company will issue to
Aberdeen an additional 3 million
Lithium X Shares. All Lithium X Shares issued to Aberdeen will be subject to a 4 month hold
period under applicable securities laws, with Aberdeen agreeing to a further 6 month hold
period (for a total hold period of 10 months) in respect of 3
million of the Lithium X Shares issued on closing.
In connection with the closing of the Acquisition, the Company
and Aberdeen will terminate their
existing shareholders' agreement regarding the project company,
Potasio y Litio de Argentina SA, which will be a wholly-owned
subsidiary of the Company following completion of the
Acquisition.
Completion of the Acquisition is expected to occur on or about
July 12th, 2017 but is
subject to usual closing conditions, including receipt of all
required regulatory and other approvals.
Brian Paes-Braga, CEO and a
Director of Lithium X, commented, "This transaction marks another
milestone for Lithium X, as the Company will now control 100% of
PLASA, the Argentine subsidiary that fully controls the Sal de Los
Angeles Project. This transaction provides Lithium X with the
ultimate flexibility in developing the project and more easily
delivers shareholder value over the long term."
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 Metals Limited ("Pure Energy"). The
Company's flagship project is the Sal de los Angeles lithium brine
project, in which it owns a 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 an NI 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 19.99% 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.