07:45:17 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Lithium X Energy NSP property agreement

2015-11-27 20:49 ET - Property Agreement

The TSX Venture Exchange has also accepted for filing documentation pertaining to an agreement dated Nov. 5, 2015, between the company, 1054527 B.C. Ltd., a wholly owned subsidiary of the company, and 1045564 B.C. Ltd. Pursuant to the agreement, the company has acquired 1045564 B.C. in consideration for five million common shares in the company.

1045564 B.C. holds an option to acquire a 100-per-cent interest in the NSP lithium claim group, consisting of 77 unpatented placer claims covering 1,540 acres in Esmeralda county, Nevada, from Clayton Valley Lithium Inc.

In order to exercise the option and earn the 100-per-cent interest in the property, the company must:

  • Pay $100,000 (U.S.) in cash and issue one million common shares to Clayton Valley;
  • Pay $250,000 (U.S.) in cash on each of the first, second, third and fourth anniversaries of the closing date;
  • Issue in total 1,784,448 common shares, in four equal tranches, on each of the first, second, third and fourth anniversaries of the closing date;
  • Expend a minimum of $1-million (U.S.) on the property by the first anniversary of the closing date;
  • Expend a further $1.5-million (U.S.) on the property by the second anniversary of the closing date;
  • Expend a further $2-million (U.S.) on the property by the third anniversary of the closing date;
  • Prepare and deliver a prefeasibility study on the property by no later than the fourth anniversary of the closing date.

In addition, under the option, the company has agreed as follows:

  • Upon completion of an inferred resource calculation that confirms the presence on the property of a minimum of 100,000 tons lithium carbonate equivalent grading at no lower than 28 parts per million lithium grade average, the company shall issue to Clayton Valley one million common shares;
  • Upon completion of an economic feasibility study by the company on the property (on or before the 10th anniversary of the closing date), pay to Clayton Valley $2-million (U.S.) in cash or in shares, or a combination thereof, determined at the election of the company and subject to the approval of the exchange.

Pursuant to the option, Clayton Valley will also obtain a gross value returns royalty equal to 2.5 per cent of the gross value of minerals produced and sold from the property.

Insider or pro group:At the time of agreement, Frank Giustra indirectly held 16.55 per cent of the shares of the company and also indirectly held 20 per cent of the outstanding shares in 1045564 B.C.

Refer to the company's filing statement dated Nov. 20, 2015, on SEDAR for further information.

The company has met the requirements to be listed as a TSX Venture Exchange Tier 2 company. Therefore, effective on Monday, Nov. 30, 2015, the company's listing will transfer from the NEX to the TSX Venture Exchange, the company's tier classification will change from the NEX to Tier 2, and the filing and service office will change from the NEX to Vancouver.

Effective at the opening, on Monday, Nov. 30, 2015, the trading symbol for the company will change from ROY.H to LIX. The company is classified as a mining company.

© 2024 Canjex Publishing Ltd. All rights reserved.