LithiumBank Announces Option Agreement for Saskatchewan Properties - Receives $8 Million Non-Refundable Deposit - Terminates Pristine Asset Purchase Agreement
LithiumBank Announces Option Agreement for
Saskatchewan Properties - Receives $8 Million
Non-Refundable Deposit - Terminates Pristine
Asset Purchase Agreement
Calgary, Alberta--(Newsfile Corp. - December 21, 2023) -
LithiumBank Resources Corp.
(TSXV:
LBNK)
(OTCQX: LBNKF)
("
LithiumBank
'' or the "
Company
") is pleased to announce it has
entered
into an option agreement dated December 20, 2023 (the "
Option Agreement
") pursuant to which the
Company has granted the optionee the option to purchase one or more of the Company's three lithium
brine projects, Estevan, South and Kindersley (the "
Assets
") located in Saskatchewan, Canada
(collectively, the "
Options
").
Concurrently with entering into the Option Agreement, the optionee has paid to the Company a non-
refundable deposit of $8 million. The optionee may exercise one or more of the Options by paying the
applicable purchase price as set out in the option agreement, less the deposit, to the Company at any
time until March 31, 2024, upon which time the Options shall automatically terminate.
"LithiumBank's objective is to maximize shareholder value and to lay the foundation for a thriving lithium
district in western Canada," commented Paul Matysek, Executive Chairman of LithiumBank. "This option
agreement is further validation of our vision. The agreement provides the Company non-dilutive capital
while also raising the profile and potential of the geological district that includes the Company's Flagship
Boardwalk Project and its larger look-a-like Park Place Project in west central Alberta. We appreciate
the work done by Pristine Lithium and wish them luck in their future endeavours."
Termination of Pristine Asset Purchase Agreement
Further to the Company's news release dated July 31, 2023, the Company announces that it has mutually
agreed with Pristine Lithium Corp. ("
Pristine
") to terminate the asset purchase agreement entered into
in July 2023 pursuant to which Pristine agreed to acquire the Assets.
In connection with the termination,
the Company: (i) paid to Pristine a break-fee of $3.0 million and (ii) returned to Pristine its deposit of
$250,000.
In connection with the Option Agreement, the Company has agreed to pay a cash finder's fee to Kepis &
Pobe Financial Group Inc. equal to 1.6% of the consideration received by the Company pursuant to the
Option Agreement.
The Option Agreement, the Options, and the payment of the finder's fee remains subject to TSX Venture
Exchange acceptance.
About LithiumBank Resources Corp.
LithiumBank Resources Corp. (TSXV: LBNK) (OTCQX: LBNKF), is a publicly traded lithium company
that is focused on developing its two flagship projects, Boardwalk and Park Place, in Western Canada.
The Company holds 2,480,196 acres of brown-field lithium brine permits, across 3 districts in Alberta
and Saskatchewan. In May 2023, LithiumBank completed an initial robust preliminary economic
assessment of its Boardwalk project that targets a 31,350 TPA operation with a USD $2.7B NPV and a
21.6% IRR with the potential for a number of near term enhancements. The Company will continue to de-
risk its assets through detailed geological modelling and advanced engineering.
Commencing in early
2024, several piloting campaigns are planned with capacity to process up to 10,000 L/d of brine and
yield up to 3 kg/d LCE as the Boardwalk Project advances into its feasibility studies phase of
development. The Company also anticipates that the facility will accelerate the development of the
Company's other assets in Western Canada.
For more information see the Company's Boardwalk Lithium Brine Project Preliminary Economic
Assessment Technical report entitled "Preliminary Economic Assessment (PEA) for LithiumBank
Resources Boardwalk Lithium-Brine Project in West- Central Alberta, Canada" effectively dated June
16, 2023 filed on
SEDAR+ (
www.sedarplus.ca
) on June 23, 2023 and on the Company's website
(
www.lithiumbank.ca
).
Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is
no guarantee that all or any part of the mineral resource will be converted into a mineral reserve. The
estimate of mineral resources may be materially affected by geology, environment, permitting, legal, title,
taxation, socio-political, marketing, or other relevant issues. A preliminary economic assessment is
preliminary in nature as it includes a portion of inferred mineral resources that are considered too
speculative geologically to have the economic considerations applied to them that would enable them to
be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment
will be realized.
The scientific and technical disclosure in this news release has been reviewed and approved by Mr.
Kevin Piepgrass (Chief Operations Officer, LithiumBank Resources Corp.), who is a Member of the
Association of Professional Engineers and Geoscientists of Alberta (APEGA) and the Association of
Professional Engineers and Geoscientists of the Province of British Columbia (APEGBC) and is a
Qualified Person (QP) for the purposes of National Instrument 43-101. Mr. Piepgrass consents to the
inclusion of the data in the form and context in which it appears.
Contact:
LithiumBank
Rob Shewchuk
CEO & Director
(778) 987-9767
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.
Cautionary Statement Regarding Forward-Looking Statements
This release includes certain statements and information that may constitute forward-looking
information within the meaning of applicable Canadian securities laws. All statements in this news
release, other than statements of historical facts, including statements regarding future estimates,
plans, objectives, timing, assumptions or expectations of future performance, including without
limitation, that the Company will receive TSX Venture Exchange acceptance, exercise of the Options,
payment of the finder's fee, the target and potential production of the Company's projects and the de-
risking of the Company's assets are forward-looking statements and contain forward-looking
information. Generally, forward-looking statements and information can be identified by the use of
forward-looking terminology such as "intends" or "anticipates", or variations of such words and
phrases or statements that certain actions, events or results "may", "could", "should" or "would" or
occur.
Forward-looking statements are based on certain material assumptions and analysis made by the
Company and the opinions and estimates of management as of the date of this press release,
including that Company will be able to receive TSX Venture Exchange acceptance, that the optionee
exercises the Options, that the Company will be able to achieve its target and potential production and
that that the Company will be able to de-risk its assets.
These forward-looking statements are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity, performance or achievements of the
Company to be materially different from those expressed or implied by such forward-looking
statements or forward-looking information. Important risks that may cause actual results to vary,
include, without limitation, the risk that the Company is unable to receive TSX Venture Exchange
acceptance, the risk that the Options are not exercised, that the Company is unable to achieve its
target and potential production and the risk that the Company will not be able to de-risk its assets.
Although management of the Company has attempted to identify important factors that could cause
actual results to differ materially from those contained in forward-looking statements or forward-looking
information, there may be other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements and forward-looking
information. Readers are cautioned that reliance on such information may not be appropriate for other
purposes. The Company does not undertake to update any forward-looking statement, forward-looking
information or financial out-look that are incorporated by reference herein, except in accordance with
applicable securities laws
.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/191971