Categories:
Energy
/
General Market Commentary
Topics:
General Energy
/
General Market Commentary
Pure Energy picks up Lithium X's Nevada assets, combines 10,500 ha landholdings
VANCOUVER (miningweekly.com) – Lithium explorer and project developer Lithium X has agreed to sell its Nevada-based assets to Pure Energy Minerals and become the largest shareholder of the company as it develops the package of Clayton Valley projects surrounding Albemarle's Silver Peak lithium mine, in Nevada.
The partners have signed a definitive contract outlining Lithium X subscribing for 3.57-million units of Pure Energy at a price of C$0.56 for a total subscription cost of C$2-million.
Each unit comprises one Pure Energy common share and one half of a common share purchase warrant, with each whole warrant exercisable at a strike price of C$0.75. The unit price represents a 9.8% premium to Wednesday’s closing price of Pure Energy’s common shares.
Lithium X advised that the subscription proceeds are expected to be spent entirely on the development of the Nevada assets.
"I have a lot of respect for what [Pure Energy director and CEO Patrick Highsmith] and his team have accomplished in Nevada, and their success helped inspire the founding of Lithium X. Lithium X is pleased to become Pure Energy's largest shareholder, and participate in the tremendous upside at Clayton Valley, which hosts North America's only primary producing lithium brine,” Lithium X CEO and a director Brian Paes-Braga stated.
Under the terms of the sale accord, Lithium X will transfer its option from Clayton Valley Lithium to acquire the Clayton Valley North project, and its claims comprising the Clayton Valley South Expansion. The company's Nevada interests, when combined with Pure Energy's Clayton Valley South lithium brine project that has a compliant inferred resource of 816 000 t of lithium carbonate equivalent, will create a combined Clayton Valley project consisting of more than 10 500 ha.
Under the sale, the Lithium X will receive 20.04-million Pure Energy common shares and 2.02-million share purchase warrants as payment for its Nevada interests.