Mr. Jared Lazerson reports
MGX MINERALS FURTHER EXPANDS LITHIUM LAND POSITION TO 300,000 HECTARES IN ALBERTA
MGX Minerals Inc. has entered into an agreement with the Brookes Heyman lithium syndicate to acquire a 100-per-cent undivided interest in 160,000 hectares of lithium exploration permits in the province of Alberta.
The permits encompass known historic high-grade lithium values (greater than 100 milligrams per litre) as reported in the province of Alberta industrial minerals database. MGX now controls a significant portion of lithium-bearing areas throughout the province of Alberta. This includes large strategic land blocks located throughout Mackenzie county of northwestern Alberta with close proximity to historic oil fields. MGX's lithium brine-bearing land position now spans over 300,000 hectares (1,160 square miles) with significant holdings in the geologically favourable areas of Mackenzie, Fox Creek and Red Deer.
Major existing infrastructure including wells, roads and power are available on MGX's lithium properties along with the support of nearby oil field services. MGX continues to focus on leveraging existing infrastructure in co-operation with oil and gas operators and all levels of government with the explicit goal of moving to immediate test production and test processing of lithium brine. Alberta offers the unique advantage in the global lithium race of massive existing infrastructure associated with lithium brine-bearing areas and large existing historical databases essentially, in these areas, eliminating the need for conventional exploration drilling.
In connection with the agreement, MGX has agreed to issue one million common shares of the company, with 333,000 shares due at closing and an additional 333,000 shares due on the first and second anniversaries. The company will also issue cash payments totalling $60,000, with $20,000 due at closing and an additional $20,000 due on the first and second anniversaries. MGX has also granted a 2-per-cent net smelter royalty to the syndicate, of which 1 per cent may be repurchased by the company for a one-time cash payment of $1-million.
This press release was prepared under the supervision and review of Andris Kikauka, PGeo, vice-president of exploration for MGX Minerals. Mr. Kikauka is a non-independent qualified person within the meaning of National Instrument 43-101 standards.
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