VANCOUVER, British Columbia,
May 14, 2019 /CNW/ -- NRG Metals
Inc. ("NRG" or the "Company") (TSX-V: NGZ)
(OTCQB: NRGMD) (Frankfurt: OGPN) has announced a Private Placement
of up to twenty million units at a price of CDN$ 0.225 per unit for gross proceeds of up to
CDN$ 4,500,000. Each unit will
be comprised of one Share and one transferable common share
purchase warrant. Each warrant will allow the holder to
purchase one Share of the Company at a price of CDN$ 0.35 for a period of five years from
closing. The Private Placement will be open to all existing
shareholders of the Company and interested parties who can rely
upon an exemption from the registration and prospectus requirements
of applicable securities laws to participate. The Warrants are
subject to an expiry acceleration provision whereby if the
Company's common shares close at or above $0.50 per share for more than 10 consecutive
trading days, the holder will have 30 days from that date to
exercise the Warrant.
Proceeds from the Private Placement will be used as follows:
- Completion of a Pre-Feasibility Study or Feasibility Study on
the Hombre Muerto North Lithium Project (HMN Lithium Project), as
recommended in the upcoming final PEA CDN$
2,000,000;
- Evaluation and development of alternative lithium extraction
technology specific to the HMN Lithium Project CDN$ 750,000;
- Further project acquisition, property maintenance, corporate
advertising and general working capital CDN$
1,250,000.
A finder's fee of 8% cash and 8% warrants may be payable on a
portion of the private placement.
On April 29, 2019, NRG published
results of a Preliminary Economic Assessment for the HMN Lithium
Project as follows:
HMN Lithium Project PEA Highlights
|
After-tax Net Present
Value (NPV) 8% discount rate
|
$217
million
|
|
After-tax Internal
Rate of Return (IRR)
|
28.0%
|
|
CAPEX Capital
Expenditures
|
$93.3
million
|
|
OPEX Cash Operating
Costs (per metric tonne of lithium carbonate)
|
$3,112
|
|
Average Annual
Production (lithium carbonate) tonnes per year
|
5,000
|
|
Mine Life
|
30 years
|
|
Payback Period (from
commencement of production)
|
2 years 5
months
|
The Preliminary Economic Assessment is preliminary in nature,
there is no certainty that the Preliminary Economic Assessment will
be realized. The economic analysis is based upon mineral resources
that are measured and indicated, but are not mineral reserves, and
have not demonstrated economic viability. The PEA was prepared by
Knight Piesold Consulting (KP) and JDS Energy and Mining (JDS),
both of Vancouver, in accordance
with the standards set out in National Instrument 43-101 Standards
of disclosure for Mineral Projects (NI 43-101), and CIM's Best
Practice Guidelines for Mineral Processing (BPGMP).
Richard Goodwin, P.Eng., Project
Manager for JDS Energy and Mining, Inc., is independent of NRG
Metals Inc. and a 'Qualified Person' as defined under Canadian
National Instrument 43-101. Mr. Goodwin is a mining engineer
and study manager with over 30 years of experience managing mining
operation and projects in various commodities such as base metals,
precious metals, PGMs, and diamonds in various domestic and
international locations. Mr. Goodwin is responsible for the PEA
results, participated directly in the production of this press
release publishing those results, and directly related information
in this press release, and approves of the technical and scientific
disclosure contained herein.
The Company has evaluated the HMN Lithium Project for 11 months,
completing the initial exploration, a resource calculation, and
releasing PEA numbers within that timeframe. The next step of
development is anticipated to be completed by the end of
2019. The HMN Project is strategically located in the Hombre
Muerto Salar, an area of active lithium production by FMC at the
Fenix lithium mine, some 12 kilometers south of the project
area. The project is surrounded by ground now owned by POSCO,
a Korean based lithium producer, as a result of its US$ 280 million purchase of the area from Galaxy
Resources Ltd., an Australian-based producer. Galaxy is also moving
their portion of the Hombre Muerto Salar, the Sal de Vida Project,
to lithium production.
TRADING SYMBOL
Shareholders are advised that the trading symbol for the Company
on the OTCQB Market has been changed back to NRGMF.
On behalf of the board of directors of NRG Metals
Inc.:
Adrian F. C.
Hobkirk,
President and C.E.O.
The TSX Venture Exchange has not reviewed the content of this
news release and therefore does not accept responsibility or
liability for the adequacy or accuracy of the contents of this news
release.
This news release contains certain "forward-looking statements"
within the meaning of Section 21E of the United States Securities
and Exchange Act of 1934, as amended. Except for statements of
historical fact relating to the Company, certain information
contained herein constitutes forward-looking statements.
Forward-looking statements are based upon opinions and estimates of
management at the date the statements are made and are subject to a
variety of risks and uncertainties and other factors which could
cause actual results to differ materially from those projected in
the forward-looking statements. The reader is cautioned not to
place undue reliance on forward- looking statements. We seek safe
harbor.
T: Investors / Shareholders Call 855-415-8100 / Direct to
Adrian Hobkirk 714-316-3272
E: ahobkirk@nrgmetalsinc.com
W: www.nrgmetalsinc.com
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content:http://www.prnewswire.com/news-releases/nrg-metals-inc-announces-private-placement-financing-and-development-timeline-300849609.html
SOURCE NRG Metals Inc.