VANCOUVER, May 18, 2016 /CNW/ - Lithium X Energy Corp.
("Lithium X", or the "Company") (TSX-V: LIX) (OTCQB:
LIXXF) is pleased to announce that the Company's has entered into a
binding letter of intent ("LOI") with North South Petroleum Corp
(TSX-V: NAS.H) ("North South") whereby Lithium X will option to
North South, 50% of its wholly owned CVL South Property (the
"Property") located in Nevada's
Clayton Valley.
On signing of the LOI, North South paid a non-refundable deposit
of US$100,000 to the Company. On
closing, as defined below, North South will pay Lithium X
US$1.5 million and issue to Lithium
X, that number of common shares of North Sourth as is equal to
19.9% of the issued and outstanding shares of North South upon
closing the transaction and concurrent financing as defined below.
Within 18 months of closing, North South will fund an exploration
program of a minimum of US$1 million
and complete a National Instrument 43-101 technical report.
If the report confirms an inferred resource of a minimum of 300,000
tonnes lithium carbonate equivalent grading no lower than a 28
parts per million Lithium grade average on the Property, North
South will pay a further US$500,000
to the Company. And within 36 months of closing, complete a further
Phase II minimum US$1 million
program, including completion of a feasibility study or
pre-feasiblity study on the Property and paying US$500,000 to Lithium X.
It shall be a condition precedent to closing that North South
shall have closed a private placement equity financing for gross
proceeds of not less than US$3,000,000 (the Concurrent Financing).
Upon North South completing the above payments and obligations,
it shall have earned an undivided 50% interest in the
Property.
North South shall have a due diligence period (restricted to
legal aspects of the Project) commencing upon the signing of the
Letter of Intent and expiring on May
31st, 2016 (the "Due Diligence
Period").
The parties will diligently and in good faith negotiate a
definitive agreement (the "Definitive Agreement") to be executed by
the parties by no later than the last day of the Due diligence
period. The closing date shall take place on the later of
May 31, 2016 or 3 weeks after receipt
by North South from Lithium X of a 43-101 report on the Property,
addressed to North South (the "Closing Date.") This date may
be extended by 30 days.
On closing the transaction, the Parties shall create a joint
Nevada technical committee
consisting of Marc Bustin,
Paul Matysek, William Randall and Ross
McElroy (that will meet a mimimum of once quarterly)
Lithium X agrees to vote the common shares of North South
received by it pursuant to this Letter of Intent in favour of
management of North South at any general meeting of shareholders of
North South held in the first year after the Closing Date.
Following the Closing Date, Lithium X shall have the right to
participate in all equity financings completed by North South to
the extent required to maintain its percentage equity interest in
North South.
"The opportunity to partner with North South is a tremendous
opportunity for both Companies" stated Brian Paes-Braga, Lithium X President and CEO.
"North South's management team has direct experience developing
mineral discoveries. We look forward to working together to help
fast track and enhance our Clayton Valley assets."
The CVL South Property
The CVL South Property 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. A map of the
Lithium X Clayton Valley Project can be found on the Company's
website, www.lithium-x.com.)
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, a well-known salar with positive
historical economics, grade and size. A 2,500 tonne per year
lithium carbonate equivalent ponding facility on the Sal de los
Angeles property is in the permitting stage and will be built and
operated by Salta Exploraciones S.A. 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.
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.