200 tonnes per month lithium chloride
200 tonnes per month lithium carbonate
1500 tonnes per month of lithium chloride brine
VANCOUVER, BRITISH COLUMBIA, CANADA – January 17, 2017.
LITHIUM ENERGY PRODUCTS INC. ("Lithium Energy Products” or “LEP” or the “Company”) (TSX-V: LEP) (FRANKFURT: N8I) today announced that it has signed a Memorandum of Understanding “MOU” for lithium off-take with Sichuan Zhiyuan Lithium Industries “SZLI”, a subsidiary of Shehong Zhiyuan Industry Co. SZLI is a Sichuan based cathode manufacturer.
The MOU calls for 200 tonnes per month of industrial grade lithium chloride and lithium carbonate and 1500 tonnes per month of industrial grade lithium chloride brine.
Purchase price will be based on prevailing market prices at the time the desired products are sold. Market price will be determined from an average of the previous 3 months prices published by LME, Metal Bulletin and Platts.
The MOU establishes the basic terms to be used in a future off-take agreement between LEP and SZLI. The terms are not comprehensive at this time and may be changed as a binding agreement is negotiated over the coming months.
Basil Botha, Chairman and President of LEP said; “This off take agreement is as a direct result of our Corporate Development team’s recent visit to China and our years of building relationships in China. This is an important first step for LEP in building the market side of our business. The buyer understands that we are early stage and that no production decision has been taken and may not be achieved for a few years, however we are also in a position to seek off-take agreements with other producers, so we intend to pursue producers and near term producers in order to begin to supply our customers in China, before we reach production at any of our own projects.
About Lithium Energy Products Ltd.
Lithium Energy Products has 3 highly prospective lithium properties in Nevada and Arizona.
Jackpot Lake –Moapa Valley, Nevada
100% owned - 2800 acres – 140 claims
35 km NE of Las Vegas
1976 USGS completed 129 core samples; highest Lithium value was 550 ppm, average 175 ppm
Spectrographic and atomic-absorption analyses of 135 stream sediment samples confirmed potential for lithium mineral deposits.
Wilcox Playa –Arizona
1400 acres on shore of Wilcox Playa – Dry lake bed
In 1976 USGS identified this area as one of the most prospective locations for lithium brines and highly analogous to Clayton Valley
USGS has identified a 22 sq. mile anomaly with high electrical conductivity, interpreted as subsurface brine field with no hydrological outlet.
Little Rock Lithium Target - Yavapai County – Arizona
High grade, lithium rich lacustrine clay identified.
Target is 2500 metres along strike of basin bounding fault, 300 m perpendicular to the fault and 20 m thick
Strongly clay-altered rhyolite tuff yielded highly anomalous lithium content of 172 ppm.
Hectorite clays from the same late Miocene lacustrine and volcanic strata 40 km east of the target area carry over 2,700 ppm Lithium
Identified via electromagnetic survey in 2007
Paul Sarjeant, P.Geo., is a qualified person as defined by NI 43-101 and has reviewed and approved the technical contents of this news release. Mr. Sarjeant is not independent to the Company as he is a director. The property has not been the subject of a NI 43-101 report.
The company is also the owner of five iron (magnetite) properties in the Red Lake District in the Province of Ontario. The Red Lake District is an established mining region where Lithium Energy Products has two near term development projects, the past producing Griffith mine and the Karas property.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
For further information, please contact:
Lithium Energy Products Ltd.