VANCOUVER, Nov. 8, 2017 /CNW/ - Advantage Lithium Corp. (the "Company" or "Advantage Lithium") (TSX Venture: AAL) (OTCQX: AVLIF) – Mr. David Sidoo, President and CEO, announces that the Company and its exploration partner Nevada Sunrise Gold Corporation (TSXV: NEV) ("Nevada Sunrise") (together, the "Vendors") have signed an asset purchase agreement (the "Agreement") to effect the sale of the Clayton Northeast Project ("Clayton NE") to Pure Energy Minerals Limited of Vancouver, B.C., Canada (TSXV: PE) ("Pure Energy"). Clayton NE is located adjacent to the Silver Peak lithium brine mine in Esmeralda County, Nevada, the only producing lithium mine in North America.
Said Mr. Sidoo, "I have complete faith in the ability of the Pure Energy team to bring further value to the Clayton NE Project and the other properties currently held by Pure Energy in the Clayton Valley. I have a lot of respect for Patrick Highsmith and Paul Matysek of Lithium X based on their previous success together at Lithium One. By agreeing to combine all of our projects into the new consolidated Clayton Valley Project we look forward to Pure Energy delivering even more shareholder value in the near future to all of the combined Clayton Valley assets."
The purchase price for Clayton NE is 7 million common shares of Pure Energy (the "PE Shares"). The PE Shares will be issued to the Vendors by Pure Energy on closing of the transaction (the "Closing"), which is expected to occur on or before November 30, 2017. The Company will receive 4.9 million PE shares. Prior to Closing the Company intends to fully exercise its option to earn a 70% participating interest in Clayton NE.
The Vendors have agreed to voluntary restrictions on the trading of the PE Shares for a period of 27 months with partial quarterly releases commencing after 18 months. In addition, the Vendors have agreed that for a period of 24 months following Closing, they will vote their respective PE Shares at meetings of shareholders of Pure Energy in favour of all matters proposed by Pure Energy's management.
Closing of the transaction is subject to normal conditions precedent for a transaction of this nature including receipt by Pure Energy of acceptance of the transaction by TSX Venture Exchange.
About Advantage Lithium Corp.
Advantage Lithium Corp. is a resource company specializing in the strategic acquisition, exploration and development of lithium properties and is headquartered in Vancouver, British Columbia. The common shares of the company are listed on the TSX Venture Exchange (TSX-V:AAL), and the company is also traded on the OTCQX Best Market in the U.S. (OTCQX: AVLIF). The company has acquired a 100% interest in five projects in Argentina and has acquired a 75% interest in a sixth, called Cauchari. The Cauchari project is located just 20 km south of Orocobre's flagship Olaroz Lithium Facility.
Certain information contained in this press release constitutes "forward-looking information", within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "is expected", "intends", or "has the potential to". Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of Advantage that involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. The forward-looking statements included in this press release are made as of the date of this press release and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
Neither 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 release.
SOURCE Advantage Lithium Corp
For further information: David Sidoo, President & CEO, Tel: 604.343.3760 | Fax: 604.683.1585, Email: [email protected]