LiCo Energy Metals Provides a Company Update and Announces a Consolidation
TSX VENTURE: LIC
September 11, 2018 / TheNewswire / Vancouver, British Columbia - LiCo Energy Metals Inc. ("the Company" or LiCo") TSXV: LIC, OTCQB: WCTXF would like to provide its shareholders with additional information regarding its financial state, exploration programs and corporate events.
As mentioned in the May 14, 2018 shareholder update news release, since the completion of LiCo's Phase 1 diamond drilling programs at the end of the 2017 calendar year, Company management has been reviewing various financing options that will allow it to continue to move forward its promising lithium projects in Nevada and Chile, as well as, its Ontario cobalt projects (Teledyne Cobalt and Glencore Bucke) in Canada. The Company plans to commence an exploration program shortly on its Canadian cobalt properties as part of its flow-through financing obligations for funds raised earlier. As per the recently approved option agreement, Surge Exploration Inc., will fulfil its obligations with a complimentary exploration program on both the Glencore Bucke and Teledyne properties into 2019 and beyond.
Mr. Rick Wilson, President and CEO of LiCo states "The Company's working capital, although sufficient to maintain company operations into 2020, was inadequate to allow the Company to undertake several separate exploration programs at the same time. LiCo has made a concerted effort to evaluate its current exploration programs in order to make sure that they fit with the Company's objectives and working capital position. To this end, LiCo management will continue to look for well-financed partners in order to allow LiCo to use its remaining exploration dollars wisely, while increasing the value of its key exploration properties."
Mr. Wilson continues, "Furthermore, the Company now needs to enact a financing strategy that would allow it to explore its properties and increase the value of its mineral assets beyond 2020. Given the continued weakening of junior mining equity financing markets and the relatively large number of Company common shares already issued and outstanding, management believes that a common share consolidation will position the company correctly for a future financing event. In order for the Company to seek new business opportunities and better finance the Company, the Board of Directors have approved and authorized a consolidation of the Company's issued and outstanding shares on a 10 old for 1 new basis, consolidating its 185,651,472 currently outstanding shares to 18,565,147 shares."
The Company will not be issuing fractional shares as a result of the consolidation. Instead, all fractional shares equal or greater to one-half will be rounded to the next whole share. The Company's outstanding stock options and share purchase warrants will be adjusted upon completion of the consolidation.
The Company does not intend to change its name or seek a new stock trading symbol from the Exchange in connection with the Consolidation. The Company's shares will continue to trade under the symbol "LIC". The consolidation remains subject to final acceptance by the Exchange.
A letter of transmittal will be sent to the registered shareholders providing instructions to surrender the share certificates evidencing their pre-consolidated common shares for replacement certificates of LiCo Energy Metals Inc. representing the number of post-consolidated common shares they are entitled to as a result of the consolidation. Until surrendered, each certificate representing the pre-consolidated common shares will be deemed to represent the number of post-consolidated common shares of LiCo Energy Metals Inc. that the holder thereof is entitled to as a result of the consolidation.
About LiCo Energy Metals: https://licoenergymetals.com/
LiCo Energy Metals Inc. is a Canadian based exploration company whose primary listing is on the TSX Venture Exchange. The Company's focus is directed towards exploration for high value metals integral to the manufacture of lithium ion batteries.
Cobalt Ontario Properties: The Company has entered into an Option Agreement with Surge Exploration Inc. ("Surge") whereby Surge can earn an undivided 60% interest in the Glencore Bucke and the Teledyne Cobalt Properties, located in Cobalt Ontario subject to certain cash, share and exploration payments to LiCo. Upon Surge having exercised the Option, Surge will have earned an undivided 60% interest in the Cobalt Properties, and the parties will enter into a Commercially Reasonable and Definitive Joint Venture Agreement.
LiCo has received an independent third-party fairness opinion dated May 23, 2018 from Bruce Laird, P.Geo. relating to the Cobalt Properties. The fairness opinion confirms and concludes the terms of the Option Agreement between the Company and Surge is fair to the shareholders of the Company.
Glencore Buck Cobalt Project
The Company earned its 100% interest in the Glencore Bucke Property from Glencore Canada Corporation. The Property is subject to a back-in provision, production royalty and off-take agreement with Glencore. The Property is situated in Bucke Township, 6 km east-northeast of Cobalt, Ontario, Strategically, the Glencore Bucke Property consists of 16.2 hectares and sits along the west boundary of LiCo's Teledyne Cobalt Project. The Property covers the southern extension of the #3 vein that was historically mined on the neighbouring Cobalt Contact Property located to the north of the Glencore Bucke Property. Diamond drilling in 1981 on the Glencore Bucke Property delineated two zones of mineralization measuring 150 m and 70 m in length. During the fall of 2017, LiCo completed 21 diamond drill holes totaling 1,900 m. This drill program, along with the Phase 1 diamond drilling program completed on the Teledyne Cobalt Property, satisfied LiCo's flow-through financing obligations. The exploration program at the Glencore Bucke Property also satisfied our contractual obligations to Glencore plc. whereby LiCo was to incur $250,000 of exploration expenditures on the Property within six months of the approval date (see News Release dated September 5th, 2017)
Ontario Teledyne Cobalt Project:
The Company earned its 100% interest in the Teledyne Property, subject to a royalty, in the Teledyne Project located near Cobalt. Ontario. The Property adjoins the south and west boundaries of claims that hosted the Agaunico Mine. From 1905 through to 1961, the Agaunico Mine produced a total of 4,350,000 lbs. of cobalt and 980,000 oz. of silver. A significant portion of the cobalt that was produced at the Agaunico Mine located along structures that extended southward onto the Teledyne property. The Company completed a total of 11 diamond drill holes totaling 2,200 m in the fall of 2017. The drilling has confirmed cobalt mineralization present on the Property which is consistent with historical grades as reported historically by Cunningham-Dunlop (1979) and Bressee (1981), disclosed in earlier news releases. These reports are available in the public domain through MNDM's AFRI database
Chile Purickuta Lithium Project:
The Purickuta Project is located within Salar de Atacama, a salt flat encompassing 3,000 km2, being about 100 km long, 80 km wide and home to approximately 37% of the worlds Lithium production. The salar possesses a very high grade of both Lithium (1,840mg/l) and Potassium (22,630mg/l and is close to power, labour, communications, transportation and other infrastructure. The property of 160 hectares is enveloped by a concession owned by Sociedad Quimica y Minera ("SQM") and lies, significantly, within a few kilometers of the property of CORFO (the Chilean Economic Development Agency) where its leases to both SQM and Albermarle's Rockwood Lithium Corp Together these two companies have combined production of over 62,000 tonnes of LCE (Lithium Carbonate Equivalent) annually making up 100% of Chile's current lithium output. The unique characteristics of Salar de Atacama make finished lithium carbonate easier and cheaper to produce than any of its peer group globally.
Purickuta is a smaller exploitation concession rather than a large exploration concession thereby accelerating the task of taking the project to production once a measured reserve can be established. Currently, the Chilean government retains ownership of lithium separate from other minerals and thus production can only proceed upon receipt of a special lithium operation contract know as a "CEOL". In the future, it will be necessary for LiCo and partner to negotiate a production contract with CORFO concurrently with completing any positive feasibility study. "Chile, which has one of the world's most plentiful supplies of lithium, is pushing ahead with new policies to develop those reserves". (Reuters Jan 2, 2017).
Nevada Black Rock Desert Lithium Project:
The Company has entered into an option agreement whereby the Company may earn an undivided 100% interest, subject to a 3% NSR, in the Black Rock Desert Lithium Project in southwest Black Rock Desert, Washoe County, Nevada.
The Company is planning exploration programs on a number of its properties over the next several months. The technical content of this news release has been reviewed and approved Joerg Kleinboeck, P.Geo., an independent consulting geologist and a qualified person as defined in NI 43-101.
On Behalf of the Board of Directors
Rick Wilson, President &CEO
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 release.
Disclaimer for Forward-Looking Information:
This news release may contain forward-looking statements which include, but are not limited to, comments that involve future events and conditions, which are subject to various risks and uncertainties. Except for statements of historical facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt and security of mineral property titles, availability of funds, and others are forward-looking. Forward-looking statements are not guarantees of future performance and actual results may vary materially from those statements. General business conditions are factors that could cause actual results to vary materially from forward-looking statements.