MGX Minerals is pleased to report the Company has entered into an agreement with the Brookes Heyman Lithium Syndicate to acquire a 100% undivided interest in 160,000ha of lithium exploration permits in the Province of Alberta.
The Permits encompass known historic high-grade lithium values (>100 mg/L) 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-favorable 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 cooperation 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 totaling CA$60,000, with CA$20,000 due at closing and an additional CA$20,000 due on the first and second anniversaries. MGX has also granted a 2% Net Smelter Royalty to the Syndicate, of which 1% may be repurchased by the Company for a one-time cash payment of CA$1 million.
MGX Minerals (CSE:XMG) is a diversified Canadian mining company engaged in the acquisition and development of industrial mineral deposits in western Canada that offer near-term production potential, minimal barriers to entry and low initial capital expenditures.
The Company operates the Driftwood Creek magnesium project located in the East Kootenay Region of British Columbia. MGX has recently received approval of a 20 year mining lease for Driftwood and bulk sampling is currently underway.