The last time we mentioned LITHIUM X ENERGY C COM NPV (OTCMKTS:LIXXF) the company had just appointed a new Chief Financial Officer, Mr. Bassam Moubarak CPA, CA, who was brought in to spearhead the Company’s financial reporting and regulatory compliance, as well as corporate development activities.
Subsequent to our article on LIXXF, which came on the 1st of May, the stock did see a moderate yet respectable run on the chart from 1.355 to 1.73, which worked out to a 28.1% swing. That was followed by a consolidation down to current levels in the 1.40’s but a reversal and another leg-up is not out of the question here, which is part of the reason why we wanted to swing back around and talk about LIXXF again.
LITHIUM X ENERGY C COM NPV (OTCMKTS:LIXXF) announced this week that it has completed transactions with Pure Energy Minerals Limited (“Pure Energy”), consisting of the sale of its interests in Nevada (the “Sale”) and its subscription for 3.571 million Pure Energy units for at a total subscription cost of C$2 million (the “Subscription”).
The Sale and Subscription were completed on the terms previously announced by the Company on May 11, 2017. Completion of the Sale and the Subscription results in the Company participating in Nevada’s Clayton Valley solely through its holding of 19.99% of Pure Energy’s outstanding common shares and Pure Energy share purchase warrants that, if exercised immediately, would increase the Company’s ownership interest to 22.5%. The Company has agreed not to exercise any share purchase warrants of Pure Energy if, upon exercise, the Company would become a ‘Control Person’ (as such term is defined in the policies of the TSX Venture Exchange) unless Pure Energy has obtained the prior approval of its shareholders and of the TSXV, as applicable.
The Company continues to be fully funded for all current work programs, with approximately C$22.5 million in cash and no debt.
On completion of the Sale and the Subscription, the Company holds a total of 23,609,620 common shares of Pure Energy and 3,808,004 share purchase warrants, exercisable for a period of 3 years (subject to acceleration) entitling Lithium X to acquire 3,808,004 common shares of Pure Energy at a price of C$0.75 per common share. The Units (each consisting of one common share of Pure Energy and one half of a share purchase warrant) were purchased from Pure Energy’s treasury at a price of C$0.56 per Unit. The remaining 20,038,182 common shares of Pure Energy and 2,022,290 share purchase warrants were issued by Pure Energy to the Company in consideration for the sale of the Company’s Nevada interests to Pure Energy. Other than the securities issued by Pure Energy under the Sale and the Subscription, the Company holds no other securities of Pure Energy, and is not acting jointly or in concert with any other person. The Company will be holding its interest in Pure Energy solely for investment purposes. (Source: Canada Newswire)
We will be interested to continue following the activity in LIXXF moving forward as once it achieves solid support there could be reasonable chance at a significant bounce play. We urge readers to follow along with us, and how to do that is really quite easy. Simply stay locked to Street Register for updates, and we’ll deliver important developments on LIXXF as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in LIXXF stock, short or long.