VANCOUVER, BRITISH COLUMBIA–(Marketwired – Feb. 9, 2016) – ALIX RESOURCES CORP. (“Alix” or the “Company”) (TSX VENTURE:AIX)(FRANKFURT:37N) announces the signing of an option agreement with Lithium Australia NL (“LIT”) (ASX:LIT) to jointly explore and develop the Electra lithium project in Sonora, Mexico. Agreement terms are set out below. Alix and LIT will also work to define a percentage interest whereby Alix will share an interest in successful lithium extraction from clay technology patents arising from the joint efforts in Mexico. This transaction is subject to regulatory approvals.
Alix and Lithium Australia NL will harness the expertise of both companies and their strategic partners to advance the Electra Project which hosts projected extensions of the Sonora lithium clay deposit located in Mexico under development by Bacanora Minerals Ltd. and Rare Earths Minerals PLC (REM). Kappes Cassiday and associates (Nevada) will provide valuable processing expertise. In-field lithium assaying capability will be provided by SciAps (Boston-based instrumentation company specializing in portable analytical instruments). Alix offers an integrated exploration team, complete with seasoned professionals fluent in Spanish and English, covering legal, logistics and tenure activities, from offices based in Vancouver, Canada and Hermosillo, Mexico. It is anticipated that field crews will return to the properties shortly to commence an exploration program designed and approved by the management of both LIT and ALIX. The location of the Electra project in northern Sonora allows for year round access and field activities.
Also in conjunction with this transaction, LIT will work with clay samples taken from the Electra concessions in an effort to develop a disruptive lithium extraction technology. Lithium clay deposits have presented significant challenges and the application of the best available technology will be key to commercializing these occurrences. Adoption of mineral separation technology form other industries may allow the production of a beneficiated product, to reduce capital and operating costs.
Mike England, President of Alix states, “This transaction will see the Electra project advanced with dilution not being a factor, a very favorable development for Alix shareholders given market conditions.”
Alix – LIT agreement terms:
|BINDING FARM IN TERMS|
|Earn in||Phase 1 – LIT may earn a 25% interest in the Project by;|
|–||The issue of 500,000 Fully paid ordinary LIT shares to Alix (following LIT shareholder approval due to no placement capacity, EGM to be held within 60 days of this term sheet)|
|–||The issue of 500,000 Partly paid LIT contributing shares paid to A$0.0001 each (A$0.2499 unpaid) to Alix (following LIT shareholder approval due to no placement capacity, EGM to be held within 60 days of this term sheet)|
|–||Expenditure of A$150,000, spent entirely on phase one work. Alix to be the operator|
|–||LIT to subscribe for CAD$100,000 private placement in Alix Resources at CAD$0.05 per share and a 1 for 1 attaching CAD$0.075 one year warrant.|
|Phase 2 – LIT may earn a 49% interest in the Project by;|
|–||The issue of 500,000 Fully paid ordinary LIT shares to Alix|
|–||The issue of 500,000 Partly paid LIT contributing shares paid to A$0.0001 each (A$0.2499 unpaid) to Alix|
|–||Expenditure of a further A$250,000 within 12 months of signing. Alix – LIT combined board to agree on scope of work, LIT to have deciding vote.|
|Phase 3 – LIT may earn a 65% interest in the Project by;|
|–||The issue of 1,500,000 Fully paid ordinary LIT shares to Alix|
|–||Expenditure of a further A$1,100,000 within 24 months of signing. Alix – LIT to manage all work program facets.|
|–||Cash Payment of A$250,000|
ON BEHALF OF THE BOARD
Michael England, President, CEO, Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com).