- Permits received for the construction of the initial ponding facility
- The initial ponding facility is part of a joint venture with Salta Exploraciones S.A., a local consortium of companies with extensive expertise in the construction of ponding facilities
- The initial ponding facility is designed for an output of approximately 2,500 annual tonnes of lithium carbonate equivalent in 5% lithium concentrate
VANCOUVER, Feb. 21, 2017 /CNW/ - ("Lithium X", or the "Company") (TSX-V: LIX)(OTCQX: LIXXF) is pleased to announce that the Company has received permits for the construction of the initial ponding facility (the "Facility") to be constructed as part of the Salta Exploraciones S.A. ("SESA") Joint Venture (the "JV").
The initial ponding facility is designed for an output of approximately 2,500 tonnes per annum of lithium carbonate equivalent ("LCE"). The permits allow for the construction of brine collection, pumping, piping and ponding facilities consisting of 62.6 hectares of lined ponds, designed to produce a high-purity 5% lithium concentrate, at the Company's flagship Sal de los Angeles project ("SDLA" or the "Project") in Argentina. The JV ponding facility will cover a maximum of 100 hectares (approximately 1%) of the 8,156 hectares that comprise the Sal de los Angeles property. Construction activities will begin immediately. The Project has not been the subject of a feasibility study and there is no guarantee the Facility will successfully produce a commercial product on a profitable basis or at all.
"We would like to thank the Province of Salta and respective regulatory authorities for their assistance and cooperation in the granting of this permit," commented Paul Matysek, Executive Chairman. "This is a key milestone for our Company and will certainly strengthen and differentiate our status in a very crowded lithium sector. We look forward to working closely with the local authorities and workforce in developing sustainable environmental, work and social programs to ensure we develop the Facility in harmony with the Puna region."
"The receipt of construction permits for our Facility is a major landmark for Lithium X and our joint venture with SESA," commented Brian Paes-Braga, Chief Executive Officer "We are on the cusp of obtaining our first 5% lithium concentrate from our pilot pools on site. This is a high purity brine concentrate that could serve as feed to existing or new battery grade lithium carbonate and/or lithium hydroxide plants. We have already been approached by several end users of the expected concentrate and look forward to initiate testing with downstream partners."
Under the terms of the JV Agreement, to earn a 50% stake in the JV Company, SESA must contribute an estimated US$6 million or the required amount for the construction and operation of an initial 2,500tpa LCE ponding facility by incurring all construction costs, including one full year of post-construction operation. Potasio y Litio de Argentina S.A. ("PLASA"), of which Lithium X has the right to earn 80% and is 100% owner of SDLA, shall contribute US$3.3 million for a 30% contributing participation in the JV and the right to commercialize the lithium products. In addition, PLASA is also fully carried for the remaining 20% for contributing brine from existing wells on the Project, including a free-flowing artesian well that is expected to supply the operation initially.
The Company cautions that the Project has not been the subject of a feasibility study and there is no guarantee the pilot ponding facility will successfully produce a commercial product on a profitable basis or at all. There is a significant risk that production from the pilot ponding facility will not be profitable, and the risks are even greater given that no feasibility study has been prepared. The Company has not established the economic viability of the proposed operation or any mineral reserves that would support the same. It also does not disclose the higher risk of failure of this production decision in the circumstances. The purpose of the pilot program is not to commence commercial production but to utilize the expertise and experience of its new joint venture partner, Salta Exploraciones SA ("SESA") using brine from an existing free flowing artesian well which will contribute initial brine to the pilot ponding facility. SESA is a consortium of Argentina based engineering and construction firms with extensive experience in the design, construction and operation of lithium brine facilities in Argentina's Puna region, where the Project is located.
The scientific and technical content and interpretations contained in this news release have been reviewed and approved by VP of Project Development William Randall, a Qualified Person as defined by NI 43-101, Standards of Disclosure for Mineral Projects.
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. Lithium X owns 50%, and has the option to acquire up to 80%, of the Sal de los Angeles lithium brine project in the prolific "Lithium Triangle" in mining friendly Salta province, Argentina. Lithium X's Arizaro project consists of 33,846 hectares located in one of the district's largest salars known to contain elevated lithium brine values. Lithium X is also exploring a large land package in Nevada's Clayton Valley, contiguous to the only producing lithium operation in North America – Silver Peak, owned and operated by Albemarle, the world's largest lithium producer. Lithium X is listed on the TSXV under the trading symbol LIX.
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
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.
References to "production" or "pilot production" herein should not be construed to imply that the Company's Sal del Los Angeles Project is in commercial production or that it contains mineral reserves. Further technical studies will be required to assess the project's viability. There is no certainty that a potential mine will be realized or that a production decision will be made.
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. 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 and the commencement of trading in the Company's shares. 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.
For further information: Brian Paes-Braga, President and CEO, Director, Tel: 604-609-6113, Email: firstname.lastname@example.org; Timothy McKenna, Investor Relations, Toll Free (Canada & US): 1-888-760-5498, US: +1-732-331-6457, Email: email@example.com