Highlights:
- Permits received for the construction of the initial ponding
facility
- The initial ponding facility is part of a joint venture with
Salta Exploraciones S.A., a local consortium of companies with
extensive expertise in the construction of ponding
facilities
- The initial ponding facility is designed for an output of
approximately 2,500 annual tonnes of lithium carbonate equivalent
in 5% lithium concentrate
VANCOUVER, Feb. 21, 2017 /CNW/ - ("Lithium X", or the
"Company") (TSX-V: LIX)(OTCQX: LIXXF) is
pleased to announce that the Company has received permits for the
construction of the initial ponding facility (the
"Facility") to be constructed as part of the Salta
Exploraciones S.A. ("SESA") Joint Venture (the
"JV").
The initial ponding facility is designed for an output of
approximately 2,500 tonnes per annum of lithium carbonate
equivalent ("LCE"). The permits allow for the construction
of brine collection, pumping, piping and ponding facilities
consisting of 62.6 hectares of lined ponds, designed to produce a
high-purity 5% lithium concentrate, at the Company's flagship Sal
de los Angeles project ("SDLA" or the "Project") in
Argentina. The JV ponding facility will cover a maximum
of 100 hectares (approximately 1%) of the 8,156 hectares that
comprise the Sal de los Angeles property. Construction activities
will begin immediately. The Project has not been the subject of a
feasibility study and there is no guarantee the Facility will
successfully produce a commercial product on a profitable basis or
at all.
"We would like to thank the Province of Salta and respective
regulatory authorities for their assistance and cooperation in the
granting of this permit," commented Paul
Matysek, Executive Chairman. "This is a key milestone for
our Company and will certainly strengthen and differentiate our
status in a very crowded lithium sector. We look forward to working
closely with the local authorities and workforce in developing
sustainable environmental, work and social programs to ensure we
develop the Facility in harmony with the Puna region."
"The receipt of construction permits for our Facility is a major
landmark for Lithium X and our joint venture with SESA," commented
Brian Paes-Braga, Chief Executive
Officer "We are on the cusp of obtaining our first 5% lithium
concentrate from our pilot pools on site. This is a high
purity brine concentrate that could serve as feed to existing or
new battery grade lithium carbonate and/or lithium hydroxide
plants. We have already been approached by several end users
of the expected concentrate and look forward to initiate testing
with downstream partners."
Under the terms of the JV Agreement, to earn a 50% stake in the
JV Company, SESA must contribute an estimated US$6 million or the required amount for the
construction and operation of an initial 2,500tpa LCE ponding
facility by incurring all construction costs, including one full
year of post-construction operation. Potasio y Litio de
Argentina S.A. ("PLASA"), of which
Lithium X has the right to earn 80% and is 100% owner of SDLA,
shall contribute US$3.3 million for a
30% contributing participation in the JV and the right to
commercialize the lithium products. In addition, PLASA is also
fully carried for the remaining 20% for contributing brine from
existing wells on the Project, including a free-flowing artesian
well that is expected to supply the operation initially.
The Company cautions that the Project has not been the subject
of a feasibility study and there is no guarantee the pilot ponding
facility will successfully produce a commercial product on a
profitable basis or at all. There is a significant risk
that production from the pilot ponding facility will not be
profitable, and the risks are even greater given that no
feasibility study has been prepared. The Company has not
established the economic viability of the proposed operation or any
mineral reserves that would support the same. It also does not
disclose the higher risk of failure of this production decision in
the circumstances. The purpose of the pilot program is not to
commence commercial production but to utilize the expertise and
experience of its new joint venture partner, Salta Exploraciones SA
("SESA") using brine from an existing free flowing artesian well
which will contribute initial brine to the pilot ponding facility.
SESA is a consortium of Argentina based engineering and
construction firms with extensive experience in the design,
construction and operation of lithium brine facilities in
Argentina's Puna region, where the Project is located.
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 goal of becoming a low-cost supplier for the
burgeoning lithium battery industry. Lithium X owns 50%, and has
the option to acquire up to 80%, of the Sal de los Angeles lithium
brine project in the prolific "Lithium Triangle" in mining friendly
Salta province, Argentina. Lithium X's Arizaro project
consists of 33,846 hectares located in one of the district's
largest salars known to contain elevated lithium brine values.
Lithium X is also 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 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.
ON BEHALF OF THE BOARD OF DIRECTORS
"Paul Matysek"
Paul
Matysek
Executive Chairman
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.
References to "production" or "pilot production" herein should
not be construed to imply that the Company's Sal del Los Angeles
Project is in commercial production or that it contains mineral
reserves. Further technical studies will be required to assess the
project's viability. There is no certainty that a potential mine
will be realized or that a production decision will be made.
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.