TORONTO, March 21, 2017 /CNW/ - Enirgi Group Corporation ("Enirgi Group" or the "Company") is pleased to announce it has made the strategic decision to establish its Advanced Materials Division ("AMD" or the "Division") in Argentina with the mandate to focus on the development and application of transformative solutions and disruptive technology to sustainably support the production of lithium products in the region. The Division will be headquartered in Salta, Argentina and will bring together human capital and lithium industry experience to manage the expected growth of Enirgi Group's lithium operations (through its wholly-owned subsidiary ADY Resources Limited ("ADY")) and to develop the lithium assets of LSC Lithium Corporation ("LSC") and LitheA Inc. ("LitheA"). The Advanced Materials Division will need to expand its capabilities to prosecute these business plans by creating approximately 15 – 20 new jobs in the near term with additional job opportunities to follow as the Division grows.
For lithium, the establishment of the AMD supports the Company's previously announced plans to create a global lithium business underpinned by a Regional Processing Facility ("RPF") within the "lithium triangle" where some of the world's most abundant lithium brine deposits are located. The RPF is expected to process raw brine that is sustainably extracted from various Salars in the region and sent to the facility to produce high quality lithium products in less than 24 hours without the use of a large network of evaporation ponds.
In July 2016, Enirgi Group announced positive results of its Definitive Feasibility Study for its planned 50,000 tonne per annum lithium carbonate processing plant at its flagship Salar del Rincón project located in the province of Salta, Argentina (the "Rincón Project").
Wayne Richardson, President and CEO of Enirgi Group, commented, "The Advanced Materials Division will be 'the tip of the spear' in the execution of Enirgi Group's longer-term plans to increase its planned production capacity by scaling the Rincón Project into a larger Regional Processing Facility that will utilize Enirgi Group's game-changing DXP Technology for the development of the Salar del Rincón and other lithium brine salars in the region. What is exciting, is that we are building and nurturing skills and expertise in Argentina – skills that are relevant and in demand globally."
At a recent dinner hosted by the Australia-Latin America Business Council in Sydney, Australia, Mr. Richardson spoke in depth with the Vice President of Argentina, Gabriela Michetti, and Juan Procaccini, Executive President and CEO of the Argentina Investment and Trade Promotion Agency, about the positive progress with the demonstration plant being built at the Rincón Project, the successful execution of its strategic relationship with LSC, an emerging lithium producer that trades on the TSX Venture Exchange, and the ongoing positive progress made by the Macri Government to reframe Argentina's economy, which has provided Enirgi Group with the confidence to make this key decision to support the shared goal of placing Argentina and Enirgi Group at the centre of the global lithium supply chain.
Mr. Richardson commented, "The decision to create an Argentine-based Advanced Materials Division and our strategic partnerships within the region help to underpin Enirgi Group's strategy to support the growth of the lithium industry in Argentina and to maximize efficiency in the region to sustainably extract and produce lithium for global markets. I commend President Macri's Government for its many achievements in restoring Argentina's reputation with International Investors who are gaining the confidence required to fund key projects such as Enirgi Group's Rincón Project."
Mr. Richardson is also the President and CEO of LSC, an emerging lithium producer that holds, or has under option, a land package portfolio totaling approximately 270,000 hectares, which represents extensive prospective lithium salar holdings in Argentina. LSC and Enirgi Group announced they had entered into a strategic relationship for the exploration and development of lithium brine projects in Argentina and LSC has exclusive rights to Enirgi Group's DXP Technology in Argentina. Pursuant to that strategic relationship, Enirgi Group is the operator and technology service provider for LSC in Argentina. On March 15, 2017, LSC announced it had exercised its option to acquire 100% of LitheA and its assets in Argentina, subject to receipt of regulatory approval.
Enirgi Group is nearing completion of engineering works and construction on its demonstration plant on site at the Rincón Project and has plans to invest approximately US$720M to build its planned 50,000 tonne per annum lithium carbonate commercial processing plant subject to funding and receipt of necessary approvals. Further progress updates will be released as warranted.
ABOUT ENIRGI GROUP
Enirgi Group is a privately held multinational conglomerate with six unique divisions that own and operate a portfolio of high-quality assets and operations located around the world. Enirgi Group is focused on developing innovative technologies to sustainably progress a number of development projects around the globe with the goal of becoming a leading low-cost, high quality producer of specialty materials and energy storage solutions.
Enirgi Group is wholly-owned by Sentient Group. The Sentient Group Limited is an independent private equity investment firm specializing in the global resources industry with over US$2.7 billion of assets under management in metal, mineral and energy assets across the globe.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements about the Company, the development of the Advanced Materials Division, Rincón Project and its business. Forward-looking statements are statements that are not historical facts and are based on certain assumptions relating, but not limited to: the Company's employment growth in Argentina, the construction of the RPF at the Rincón Project, the potential commercialization of other Salars not owned by the Company, the anticipated cost of investment at the Rincón Project, anticipated mining and processing methods for the Rincón Project, the estimated economics of the Rincón Project, estimated capital costs, timing for commencement of construction and production from the Rincón Project, receipt of necessary funding and permitting for the Rincón Project, the successful commercialization of the DXP Technology, the strategic relationship with LSC Lithium Corporation and LitheA Inc, the application of the DXP Technology to other lithium salars, the ability of Enirgi Group to meet any amount of future lithium demand from its production and global lithium demand and consumption. While the Company considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. The forward-looking statements in this news release are subject to various risks, uncertainties and other factors that could cause the Company's actual results or achievements to differ materially from those expressed in or implied by forward looking statements. These risks, uncertainties and other factors include, without limitation, risks related to uncertainty in the demand for lithium and pricing assumptions; uncertainties related to raising sufficient financing to fund the Rincon Project and RPF in a timely manner and on acceptable terms; uncertainties relating to the successful development of feasibility studies on other Salars to support commercialization; changes in planned work resulting from logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's lithium property; uncertainties involved in the estimation of lithium reserves and resources; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; risks related to projected project economics, recovery rates, and estimated NPV and anticipated IRR and other factors; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof or in regulatory, political or economic developments in Argentina. Forward-looking statements are based on the beliefs, opinions and expectations of the Company's management at the time they are made, and other than as required by applicable securities laws, the Company does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, should change.
SOURCE Enirgi Group Corporation
For further information: Enirgi Group Corporation, Jessica Helm, VP Corporate Communications, 1 Adelaide Street East, Suite 3001, Toronto, Ontario, Canada M5C 2V9, P | + 1 416 365 2783 E | [email protected] W | enirgi.com