The last time we mentioned LITHIUM X ENERGY C COM NPV (OTCMKTS:LIXXF) here on Street Register was back in June, and we were talking about the company’s Pure Energy mineral holdings in Nevada. This week, we’re focused on a recent announcement concerning its holdings in Salta province, Argentina.
For those who may not be familiar with LIXXF, it is a lithium exploration and development company with a goal of becoming a low-cost supplier for the burgeoning lithium battery industry.
LITHIUM X ENERGY C COM NPV (OTCMKTS:LIXXF) made it known last week that it has successfully completed the consolidation of the Sal de los Angeles (“SDLA”) project so that it now controls 100% of the mineral titles contained within the brine bearing regions of the Diablillos basin.
The consolidation involved the acquisition of 2,700 hectares of claims from Borax Argentina S.A. (“Borax”) replacing the usufruct Lithium rights previously held by the Company over the Borax claims and an agreement to acquire a further 700 hectares currently owned by South American Salars S.A. (“SAS”) for a total consideration of 650,000 common shares of Lithium X, USD $1,000,000 and a 1% Net Revenue Royalty over the SDLA project.
Brian Paes-Braga, President & CEO remarks “The execution of these agreements, coupled with the earlier purchase of Aberdeen’s portion of Potasio y Litio de Argentina, will ultimately give Lithium X one hundred percent ownership of the Diablillos basin. This significantly simplifies and de-risks potential future development of the salar.”
The Orocobre Agreements result in Lithium X being the sole owner of all mineral titles on the salar and covers the entirety of the known brine-bearing aquifers. The Orocobre Agreements also include other provisions related to artesian brine management, which is the source of brine for the Initial Ponding Facility. The artesian brine will be captured, pumped and piped to the Initial Ponding Facility evaporation ponds where it will undergo evaporation-based metallurgical processing.
Subject to the completion of the Agreements, the project will consist of a total of 8,854 hectares covering 100% of Salar de Diablillos, and has a 43-101 mineral resource estimate of 1.037 million tonnes of lithium carbonate equivalent.
The Company also has a second Argentinian project, the Arizaro lithium brine project, consists of 33,846 hectares covering part of the western and eastern portions of the Salar de Azario, one of the largest known salt lakes in the world. (Source: Lithium-X.com)
One of the reasons why we’ll continue to track LIXXF, in addition these recent operational advances, is the lithium industry as a whole. According to a report by Commodity Inside, lithium demand is growing rapidly due to a rising demand for electrical grid storage, along with mobile device technology’s high reliance on lithium batteries. It cites an exponential expected growth for the electrical vehicles market as another source of a major upcoming spike in demand for lithium ion batteries over the next decade. The same report named Orocobre, the company with which LIXXF has established the aforementioned agreement, as the only industry player to have added capacity during the last decade.
We’ll await the finalization of the agreements and have a close eye on LIXXF stock in meantime. Folliwng along with the story is 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.