BRISBANE, Australia, Oct. 4, 2017 /CNW/ -- Orocobre Limited (ORE: ASX, ORL: TSX) (Orocobre) is pleased to announce the execution of agreements with Lithium X Energy Corp. (TSXV: LIX) (OTCQX: LIXXF) ("Lithium X") in respect of tenure held by Orocobre subsidiaries, Borax Argentina S.A. ("Borax") and South American Salars S.A. ("SAS") at the Salar de Diablillos.
Lithium X through its wholly-owned subsidiary, Potasio Lithio de Argentina S.A. (PLASA) will acquire 2,700 hectares of tenements from Borax over which Lithium-X currently holds usufruct rights for the extraction of lithium brines. Lithium-X will also acquire a further 700 hectares owned by SAS which had been excluded from the Advantage Lithium transaction (ASX release 28 March 2017). These tenements will be consolidated into the PLASA project, Sal de los Angeles (SDLA) in Salta Province, Argentina.
Under the agreement:
- PLASA acquires mineral title to the Borax and SAS tenements
- PLASA grants a usufruct right in favour of Borax over the Borax tenements in relation to the extraction of surface ulexite mineralisation
- PLASA agrees to pay to Borax US$250,000 and to issue 650,000 common shares of Lithium X to Borax or its nominee
- PLASA acquires the SAS tenements for consideration of US$750,000 payable to Orocobre upon certain conditions being met by SAS
- PLASA and Borax agree to cancel the existing 1.5% Mine Mouth Royalty1 on the Borax held tenements, in consideration of a 1% Net Revenue Royalty over the entire SDLA project, and
- Orocobre and PLASA mutually release each other from any potential or existing claims due to past activities by either party.
Managing Director Richard Seville commented, "This transaction further clarifies the focus on our world class Olaroz lithium facility and simplifies the current tenement position at Diablillos. The royalty we have retained also provides for a potential income stream in the future."
About Orocobre Limited
Orocobre Limited (Orocobre) is a dynamic global lithium carbonate supplier and an established producer of boron.
Orocobre is dual listed on the Australia and Toronto Stock Exchanges (ASX: ORE), (TSE: ORL). Orocobre's operations include its Olaroz Lithium Facility in Northern Argentina, Borax Argentina, an established Argentine boron minerals and refined chemicals producer and a 35% interest in Advantage Lithium.
For further information, please visit www.orocobre.com.
1 Mine Mouth Royalty is calculated as revenue less all costs incurred from the point of brine extraction.
SOURCE Orocobre Limited