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
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.
For further information: Brian Paes-Braga, President and CEO, Director, Tel: 604-609-6113, Email: [email protected]; Investor Relations, Timothy McKenna, Toll Free (Canada & US): 1-888-760-5498, US: +1-732-331-6457, Email: [email protected]