Cypress Development Enters into License Agreement with Chemionex for their DLE Technology & Equipment for Clayton Valley Lithium Project in Nevada
Suite 1610 - 777 Dunsmuir Street, Vancouver, BC, Canada, V7Y 1K4
www.cypressdevelopmentcorp.com
TSX Venture Exchange Symbol: CYP
Email: [email protected]
Telephone: (604) 687-3376
Facsimile: (604) 687-3119
NEWS RELEASE
July 6, 2021
Cypress Development Enters into License Agreement with Chemionex
for their DLE Technology & Equipment for Clayton Valley Lithium
Project in Nevada
Vancouver, BC - Cypress Development Corp. (TSX-V: CYP) (OTCQB: CYDVF)
(Frankfurt: C1Z1) (“Cypress” or “the Company”) is pleased to announce that it has
entered into a shar e purchase and license agreement (the “Agreement”) with
Chemionex Inc. (“Chemionex”), an Ontario based company, and an arm’s length third
party (collectively, the “Sellers”). The Agreement formalizes the terms of acquisition of
a license to use Chemionex’s proprietary technology for Direct Lithium Extraction
(“DLE”) (“the Lionex Process”) at Cypress’ Clayton Valley Project . The acquisition
includes pilot plant equipment designed and constructed by Chemionex, for Cypress,
which uses the Lionex Process (“Pilot Plant Equipment”).
Terms of the Agreement
Under the terms of the Agreement, Cypress shall acquire a 100% ownership in a
numbered private company (“NewCo”), incorporated in Ontario and held 100% by the
Sellers. NewCo owns the Pilot Plant Equipment and a license to use the Lionex
Process for Cypress’ Clayton Valley Lithium Project. The purchase price for NewCo,
payable at closing , comprises CAN$100,000 cash pa yment to the Sellers,
CAN$250,000 cash payable into escrow (“Escrow Cash”) and one million Cypress
shares to be transferred into escrow (“Consideration Shares”) (together the “Purchase
Price”).
The Escrow Cash will be released on delivery of the Pilot Plant Equipment to Cypress’
testing site in Am argosa Valley, Nevada. Cypress will have 12 months following
installation of the Pilot Plant Equipment to determine whether to release the
Consideration Shares to the Sellers. In the event Cypress determines not to release
the Consideration Shares, NewCo will revert back to the Sellers.
The Purchase Price grants full ownership of NewCo to Cypress with no further
payment or royalty obligations for the use of the Lionex Process.
2
The Agreement includes other terms and closing conditions customary for a
transaction of this nature, including TSXV approval of the Consideration Shares.
Bill Willoughby, Cypress CEO, commented: “We are very pleased to have access to
the Lionex Process in our pilot plant. The equipment and technology, along with the
consulting services of Chemionex and owner Craig Brown, will be an integral part of
our testing program. The Clayton Valley Lithium Project is unique in its setting and
physical characteristics of the clay, and this is an excellent opportunity for us to apply
and adapt Chemionex’s DLE technology to our processing solution. If successful,
Lionex will become a valuable asset for Cypress and the project.”
About Cypress Development Corp.:
Cypress Development Corp. is a publicly traded company focused on developing its
100%-owned Clayton Valley Lithium Project in Nev ada, USA. Exploration and
development by Cypress lead to the discovery of a world -class resource of lithium -
bearing claystone adjacent to the Albemarle Silver Peak mine, North America's only
lithium brine operation. The size of the resource makes the Clayt on Valley Project a
premier American source that has the potential to impact the supply of lithium for the
fast-growing energy storage battery market.
Clayton Valley Lithium Project, Nevada claims map:
https://www.cypressdevelopmentcorp.com/site/assets/files/3573/cyp_cypress_-
_albemarle_properties_map.jpg
To find out more about Cypress Development Corp. , visit our website at
www.cypressdevelopmentcorp.com.
To find out more about Chemionex Inc., visit their website at https://chemionex.com.
CYPRESS DEVELOPMENT CORP.
“Dr. Bill Willoughby”
WILLIAM WILLOUGHBY, PhD., PE
Chief Executive Officer
For further information contact myself or:
Don Myers
Cypress Development Corp.
Director, Corporate Communications
Telephone: 604-639-3851
Toll Free: 800-567-8181
Facsimile: 604-687-3119
Email: [email protected]
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE
CONTENT OF THIS NEWS RELEASE.
This release includes certain statements that may be deemed to be "forward -looking
statements". All statements in this release, other tha n statements of historical facts, that
address events or developments that management of the Company expects, are forward -
looking statements. Although management believes the expectations expressed in such
3
forward-looking statements are based on reasonable assumptions, such statements are not
guarantees of future performance, and actual results or developments may differ materially
from those in the forward-looking statements. The Company undertakes no obligation to update
these forward -looking statements i f management's beliefs, estimates or opinions, or other
factors, should change. Factors that could cause actual results to differ materially from those
in forward-looking statements, include market prices, exploration and development successes,
continued a vailability of capital and financing, and general economic, market or business
conditions. Please see the public filings of the Company at www.sedar.com for further
information.