Apex To Purchase 100% of Lithium Brine Property In Nevada, USA
Suite 615- 625 Howe Street
Vancouver, British Columbia, Canada V6C 2T6
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Not for distribution to United States newswire services or for release publication, distribution or
dissemination directly, or indirectly, in whole or in part, in or into the United States.
Apex To Purchase 100% of Lithium Brine
Property In Nevada, USA
Vancouver, January 9, 2024 - Apex Resources Inc. (“Apex” or the “Company”) (TSXV: APX) is pleased to
announce that it has entered into a share purchase agreement (the “SPA”) to acquire all the shares of an
arm’s length corporation holding a 100% option over the consolidated mineral rights of the Lithium Creek
Property (the “Property”) in Nevada, USA (the “Acquisition”).
Acquisition Highlights
• Consolidation of a large scale land package, comparable in size and geology to Albemarle’s
Silver Peak Mine in Clayton Valley, Nevada.
• Location: Situated off a major highway, in an area of historic basin development and geology
associated with lithium mineralization.
• Very Limited Modern Exploration: Lithium exploration and development has not been seriously
conducted in the area.
• Significant Infrastructure in Place: The district has substantial infrastructure including roads,
railways, highways, permits, national and local power and a skilled workforce in neighboring towns
and cities.
• Accelerated Pathway to Exploration: Utilizing the infrastructure and a Tier 1 exploration
team can result in accelerated results.
Mr. Jay Roberge, President Apex Resources Inc. stated, "We are very pleased to announce this acquisition
which offers Apex shareholders exposure to the potential of a low -cost lithium brine project targeting a
“Made in America” battery supply chain , ideally located in the prolific State of Nevada, home to the only
commercial lithium brine production in the USA and the first Tesla Gigafactory in the USA.”
The Lithium Creek Property
The Lithium Creek Property consists of 40 claims covering 800 acres of unpatented placer mining claims
located on public lands controlled by the Bureau of Land Management , within Churchill County, Nevada,
USA.
Surface mapping , shallow brine sampling and nearby producing geothermal aquifers provides strong
evidence for a large, preserved and untapped lithium-boron bearing brine body to exist proximal to two
lithium-boron prospects, each displaying brines with lithium in anomalous concentrations at shallow depths.
Lithium Creek Location Map
https://apxresources.com/site/assets/files/5405/location-map.jpeg
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Lithium bearing brines were discovered in shallow waters (1-2 meters below surface) via sampling from a
series of historic shallow wells and hand dug pits. Laboratory analyses indicate lithium concentrations range
from 18 mg/L in shallow surficial groundwater brines to 330 mg/L proximal to property claims. Boron is also
present at concentrations up to 400 mg/L. Modern exploration for lithium and boron bearing brines or clays
have not been attempted in this part of Nevada.
The prospects are in or near outflow zones from geothermal upwelling in the vicinity of certain geothermal
systems. Geothermal fluid is understood to liberate lithium from rhyolitic tuffs and lithium bearing clays. This
upwelling appears to manifest at the ground surface as an area of diffuse perennial discharge of brine
waters with concentrations of lithium ranging up to 20 mg/L in the creek flowing through the southern portion
of the property and is expected to influence the potential lithium brine reservoir in the basin.
The conceptual model for the property is similar to the conceptual model for Clayton Valley , Nevada.
Clayton Valley contains the only commercially operating closed basin lithium brine mine operation in North
America. The model holds that groundwater recharge from infiltration of precipitation and underflow through
lithium rich volcanic material collects in a structurally closed basin where it can be enriched and
concentrated through geothermal processes.
Geothermal waters in Clayton Valley historically emanated as surficial geothermal springs with lithium
concentrations of approximately 40 mg/L prior to brine pumping. These geothermal waters are expected to
be of meteoric source with elevated temperatures due to the high geothermal gradients in the region. The
model suggests some of these waters make their way through the basin fill in Clayton Valley via fault planes,
joints, and other natural fractures. Basin fill materials, containing lithium in solid form, are then leached by
interaction with the local groundwater. This interaction could release lithium that is absorbed or associated
with highly soluble phases. Lithium contained in the exchangeable layers of clays may also be released
due to the increased weathering rates of the elevated temperature fluids and cation exchange through
contact with basin inflow water. These interactions likely have been occurring over the timeframe of the
Pliocene and are conceptual to the formation of the lithium brines that are produced from Clayton Valley.
The conceptual model described for the lithium brine system at Clayton Valley also fits the conceptual
model for lithium brine occurrence at the Property. Existing data strongly suggests the project claims are
located within hydraulically closed basins with multiple structural boundaries. The claims are expected to
be proximal to discharge zones from convective upwelling of geothermal systems. Drill results from a
proximal geothermal field suggest brines generated from these systems are in contact with smectite clays,
rhyolitic ash flows and tuffs which could provide ample source material for soluble lithium. Figure 2 provides
a conceptual model for the Clayton Valley lithium brine deposit and the Lithium Creek brine prospect.
Image: Conceptional Model for Basin Brine Aquifer System
https://apxresources.com/site/assets/files/5405/lithium-storage-model.jpeg
Exploration work near the discovery area can commence immediately with a view to begin drill testing when
targets are re fined. Press releases should be anticipated regularly over the coming weeks and months,
subject to receiving the necessary regulatory approvals.
Transaction Summary
Pursuant to the SPA dated January 8, 2024 between the Company and 1434001 B.C. Ltd. ("1434001"), the
Company shall acquire all of the shares of 1434001 in exchange for a cash payment of USD $80,000.00
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Vancouver, British Columbia, Canada V6C 2T6
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and the issuance of 18,000,000 common shares of Apex (the "Payment Shares"). The Payment Shares
are subject to release restrictions as follows: 12.5% of the Payment Shares will be released on closing of
the Acquisition and an additional 12.5% of the Payment Shares will be released every 3 months after the
closing date. Upon completion of issuing all Payment Shares, 1434001 will become a wholly -owned
subsidiary of the Company, which holds an exclusive option to acquire a 100% interest in the Property (the
“Option”). There will be no finder’s fees payable with respect to the Acquisition. The terms of the Option
provide for 1434001 to acquire 100% of the Property by completing the following:
Date for Completion Option Payment
(USD)
Exploration & Development
Expenditures (USD)
Down Payment (non refundable) $50,000 (Paid by 1434001)
1st Anniversary of Effective Date* $100,000 $300,000
2nd Anniversary of Effective Date $150,000 $500,000
3rd Anniversary of Effective Date $300,000 $1,000,000
4th Anniversary of Effective Date $600,000 $2,000,000
5th Anniversary of Effective Date $1,200,000 $3,000,000
6th Anniversary of Effective Date $Nil $5,000,000
TOTAL $2,400,000 $11,800,000
*The Effective Date of the Option is August 25th, 2023.
Financing and Issuance of Stock Options
The Company plans to complete a non-brokered private placement financing of up to 11,430,000 units at
a price of $0.07 per unit (the “Unit”) for gross proceeds of up to $ 800,100 (the “Financing”). Each Unit is
comprised of one Apex common share and one share purchase warrant (the “Warrant”). Each Warrant will
be exercisable to acquire one Apex common share at an exercise price of $0.12 . The Warrants will have
an expiry date of two years from the date of issue (the “Expiry Date”). If at any time prior to the Expiry Date,
the Company’s common shares trade at or above a price of $0. 20 per common share on the TSX Venture
Exchange (the “Exchange”) for a period of 10 consecutive trading days commencing four months plus one
day after the issue date, the Company may, at its opti on, accelerate the Expiry Date by issuing a press
release announcing such acceleration (the "Acceleration Press Release”), and, in such case, the Expiry
Date shall be deemed to be the 30th day following the date of issuance of the Acceleration Press Release.
In addition, the Company has granted 1,500,000 incentive stock options to directors, officers, consultants
and advisors to the Company in accordance with the Company’s Stock Option Plan . The incentive stock
options are exercisable at $0.10 per share for a period of five years.
The planned Acquisition, Financing and grant of incentive stock options are subject to approval by the
Exchange. All shares issued pursuant to the SPA, Financing and exercise of warrants will be subject to a
four month hold period from the closing date.
Qualified Person and NI 43-101 Disclosure
The technical information in this news release has been prepared in accordance with Canadian regulatory
requirements as set out in National Instrument 43 -101 and reviewed and approved by Geoffrey Baldwin,
P.G. (Lic. No. 10037) , a Qualified Person who is independent of Apex and who acts as Apex’s Qualified
Person. Mr. Baldwin has sufficient experience relevant to the style of mineralization and type of deposit
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under consideration and to the activity he is undertaking to qualify as a Qualified Person as defined in the
2014 Edition of the “CIM Definition Standards for Mineral Resources & Mineral Reserves .”
About Apex Resources Inc.
Apex is a mineral exploration company engaged in the business of the acquisition, exploration and
development of mineral resource properties. Apex’s common shares trade under the symbol "APX” on the
TSX Venture Exchange (TSX-V).
On Behalf of the Board of Directors of
Apex Resources Inc.
Jay Roberge
President
Ph. +1(778)895-0247 or [email protected] website: www.apexresources.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term in defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: This news release may contain forward -looking information within the
meaning of applicable securities laws (“forward -looking statements”). Forward-looking statements are statements that are not historic al facts
and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimat es,” ‘projects,”
“potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “sho uld” occur. These forward -looking
statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected
in the forward -looking statements, including, without limitation: receipt of regulatory approvals; risks related to fluctuations in metal prices;
uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; ch anges in planned
work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the
perceived potential of the Company’s properties; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties
or interruptions; the poss ibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or
damage resulting from Apex’s operations and other risks and uncertainties. Any forward-looking statement speaks only as of the date it is made
and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any fo rward-looking
statement, whether as a result of new information, future events or results or otherwise.