Vancouver, BC – 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
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).
