VANCOUVER, Feb. 16, 2016 /CNW/ - Lithium X Energy Corp. ("Lithium X", or the "Company") (TSX-V: LIX) is pleased to announce the signing of an agreement dated February 15, 2016 for the acquisition of a 100% interest in the CVL Lithium Property (the "Clayton Valley South Expansion" or the "Property") in Nevada's Clayton Valley.
The acquisition makes Lithium X the largest claims holder with over 15,020 acres (6,078 hectares) in Nevada's Clayton Valley and land positions both north and south of Albemarle's Silver Peak mine, North America's only lithium producer.
The Company is also pleased to announce the appointment of Mr. William Randall, P Geo, as the new VP of Project Development.
The Clayton Valley South Expansion
The Clayton Valley South Expansion consists of 471 federal placer mining claims, totaling approximately 9,540 acres (3,861 hectares) and is located approximately 30 miles southwest of Tonopah, Nevada, within the Clayton Valley.
The Property is strategically located between and contiguous with the Silver Peak lithium mine operated by Albemarle Corp. on the northern boundary, the Clayton Valley South project operated by Pure Energy Minerals Ltd to the east and the Neptune property owned by Nevada Sunrise Gold Corporation to the west. (Refer to Figure 1: Lithium X Clayton Valley Project, which can also be found on the Company's website, www.lithium-x.com.)
The Company plans to test several potential lithium-bearing aquifers on the Property. The geological structure of the sediment-filled deep basin underlying the claims is a target-rich environment. Analysis of geological, geophysical and drill log data shows evidence of potential lithium-bearing aquifers. Within these sediments there are several known lithium bearing aquifers; these are the salt aquifer system, main ash aquifer, lower ash aquifer and the lower gravel aquifer. Faults within the basin create infiltration barriers that hinder the dilution of lithium brines from the influx of fresh water from the surrounding mountains.
Historic and present drilling programs surrounding the Clayton Valley South Expansion suggest the potential for discovery of lithium-bearing brines. Albemarle wells are less than 300 feet from the Property and current drilling by Pure Energy is estimated to be 800 feet from the Property.
"With this acquisition, Lithium X has established the dominant land position in the Clayton Valley, while we continue to build a first class management team with extensive lithium experience," commented President and CEO, Mr. Paes-Braga.
Consideration for the acquisition consists of a cash payment of US$350,000 and 4,000,000 common shares of the Company to the vendor. A finder's fee of 295,000 common shares of the Company is payable to a third party.
The acquisition of the Property is expected to close on or before February 26, 2016 and is subject to certain conditions including, but not limited to, receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
Strengthening the Lithium X Management Team
The Company also announces the appointment of William Randall as the new VP of Project Development. Mr. Randall is a professional geologist and qualified person ("QP") with extensive executive and technical experience in lithium exploration and development in the Clayton Valley and in South America.
For almost a decade Mr. Randall has led numerous exploration programs, including drill campaigns in Nevada's Clayton Valley and high-altitude salars throughout South America.
Mr. Randall was raised in Argentina, educated in Canada and is fluent in both English and Spanish. He will be VP of Project Development for the Company on Clayton Valley exploration programs and instrumental in finding, analyzing and conducting due diligence on other assets.
Mr. Randall has been granted 300,000 stock options for a period of 5 years based on the closing price of the market on February 16, 2016.
"I have known Will for many years and he brings a wealth of knowledge and experience in the lithium space. He is particularly well-suited in developing our existing assets as well as expansion plans for the future," said Executive Chairman Mr. Matysek.
Mr. Randall will assume the responsibilities of Mr. Timothy Oliver. Mr. Oliver resigned as VP of Project Development to pursue other opportunities.
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 focus on becoming a low-cost supplier for the burgeoning lithium battery industry. The Company is 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 Energy Corp 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.
Lithium X will also be presenting at the Subscriber Investment Summit in Toronto on March 5, 2016. More information is available at www.subscribersummit.com and a video of the presentation will be available online following the event.
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.
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.
Image with caption: "Figure 1: Lithium X Clayton Valley Project (CNW Group/Lithium X Energy Corp.)". Image available at: https://photos.newswire.ca/images/download/20160216_C5106_PHOTO_EN_621343.jpg
For further information: Brian Paes-Braga, President and CEO, Director, Tel: 604-609-5137, Email: email@example.com; Investor Relations, Mario Vetro, Tel: 604-687-7130 ext. 105, firstname.lastname@example.org