BlueBird to Acquire Prospective Portfolio of Lithium Projects in Eastern Goldfields Region of Western Australia
200 Burrard Street, Suite 1680
Vancouver, British Columbia, V6C 3L6
Tel: (604) 678‐5308
www.bluebirdbatterymetals.com
BlueBird to Acquire Prospective Portfolio of Lithium Projects in Eastern
Goldfields Region of Western Australia
Vancouver, British Columbia, April 1, 2019 – BlueBird Battery M etals Inc. (TSXV: BATT;
US:BBBMF) (the “Company” or “BlueBird”) is pleased to announce that it has entered into a
binding letter of intent (“ LOI”) to acquire 100% of the shares of Southern Lithium Pty Ltd
(“Southern Lithium”), a private Australian corpor ation. Southern Lithium holds t itle to several
tenements in Eastern Goldfields Region of Western Australia, an area with demonstrated potential
for the discovery of economically viable lithium oxide.
Highlights of Southern Lithium Acquisition:
Twelve (12) tenements totaling 664 km 2 (the “ Southern Lithium Project ”) within the
southern Yilgarn Lithium Province, an area with demonstrated po tential for significant
lithium oxide discoveries including Greenbushes, Mt Caitlin, Mt Marion, Earl Grey, Bald
Hill, Mt Kathleen and Buldania. (Figure 1);
Historical exploration focused on gold and base metal potential which identified numerous
pegmatite swarms, a preferred host rock for lithium mineralizat ion in the region and
elsewhere in Western Australia;
Historical exploration records indicate numerous descriptions o f pegmatite within
Southern Lithium’s assembled land package, offering a compellin g exploration
opportunity;
Western Australia offers excelle nt infrastructure and additiona l refining capacity for
lithium oxide is currently under construction;
Exploration to verify the lithiu m potential of known pegmatites within the acquired land
package is a top priority.
Nav Dhaliwal, CEO of BlueBird, commented, “This strategic acquisition for BlueBird secures a
highly-prospective land position within an emerging hard rock lithium district. With its stable pro-
mining politics and straightforward permitting environment, Western Australia has emerged as a
preferred source of high-quality lithium and tantalum supply. We are excited by the scope of the
opportunity before us. The district has been proven to host large-scale lithium mineralization
associated with pegmatite structures. Several pegmatite targets have been mapped within the
assembled tenements, none of which have been evaluated for lithium. That opportunity, combined
with the well-established infrastructure throughout Western Australia, provides for a particularly
compelling value proposition. We look forward to commencing exploration as soon as possible to
prioritize targets for drilling.”
About the Southern Lithium Project and Pegmatite-Hosted Lithium
The Southern Lithium Project consists of nine granted explorati on licences, three exploration
licence applications and a granted prospecting licence with a total land area of 664 km2. Pegmatite
swarms have been identified throughout the assembled tenements. Elsewhere in the region, similar
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pegmatite swarms are proven to host significant, economically viable lithium oxide mineralization
including:
Earl Grey Development Resources of 189.0 Mt averaging 1.50% L i2O
Mt Marion Producer Resources of 78.0 Mt averaging 1.37% Li 2O
Bald Hill Producer Reserves of 11.3 Mt averaging 1.00% Li 2O
Mt Cattlin Producer Reserves of 7.6 Mt averaging 1.05% Li 2O
Exploration Strategy
Initial exploration will focus on mapping, sampling and imaging of the known pegmatites to define
drill targets for subsequent exploration. Geological mapping and sampling will provide a detailed
understanding of the fractionation and composition of the pegma tites. Areas of interest will be
initially tested by rock chip sampling and soil sampling, where relevant, to define the geochemical
distribution of lithium-tantalum-tin minerals present. A combin ation of magnetics, gravity,
radiometrics and thermal imaging will be utilized to further re fine structure and geometry of the
pegmatite sequences prior to drilling.
Figure 1. Location Plan of Southern Lithium Portfolio in Western Australia
Please visit the website www.bluebirdbatterymetals.com for additional information, maps,
sections, and assay tables related to the Southern Lithium Project.
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Commercial Terms
Under the terms of the LOI, which will be formalized by a definitive agreement, the Company will
acquire a 100% interest in Southern Lithium by issuing common s hares with an aggregate value
of $2,500,000, based on a deemed issue price per share equal to the volume weighted average price
(“VWAP”) of the Company’s shares on th e TSX Venture Exchange for the 30 days prior to the
date of issue, subject to a minimum price of the discounted market price of the Company’s shares
on the day immediately preceding the date of the announcement o f this transaction (“ Minimum
Price”).
If within four years of closing, BlueBird delineates and public ly announces an inferred resource
of a minimum of 15,000,000 tonnes at a grade of greater than 1% Li2O from the Southern Lithium
Project, an additional $1,500,000 of common shares of BlueBird will be issued based on a deemed
issue price per share equal to the VWAP of the Company’s shares on the TSX Venture Exchange
for the 30 days prior to the date of issue, subject to the Minimum Price.
If within four years of closing, BlueBird announces the execution of an off-take agreement for the
sale of a minimum of 200,000 tonnes of concentrate at a minimum grade of 5% Li 2O from the
Southern Lithium Project or a minimum of 500,000 tonnes of ore at a concentrate grade of greater
than 1.2% Li2O, an additional $1,000,000 of common shares of BlueBird will b e issued based on
a deemed issue price per share equal to the VWAP of the Company ’s shares on the TSX Venture
Exchange for the 30 days prior to the date of issue, subject to the Minimum Price.
A net smelter royalty of 2.5% will apply to all minerals sold from the Southern Lithium Project.
The transaction is subject to the acceptance of the TSX Venture Exchange.
About Lithium in Western Australia
Lithium mineralization was first recognized on a significant scale at the Greenbushes Mine which
initially focused on the exploitation of tin-tantalum mineralization. With the increasing utilization
and strong projected demand for lithium ion batteries, explorat ion across Western Australia
initially targeted former, pegmatite hosted, tin-tantalum operations to evaluate the potential to host
economically significant lithium deposits. This approach was ad opted by explorers throughout
Western Australia leading to the discovery of numerous, pegmatite hosted, lithium oxide deposits.
The table below summarizes the most significant lithium discove ries associated with pegmatites
in Western Australia and is provided for reference only. There are no assurances that BlueBird
will achieve similar results or that the Southern Lithium Project, or any portion of it, will become
a producing mine.
Project Company Mineral Resource (Mt) Grade (Li 2O%)
Greenbushes Mine Albermarle/Tanqui 157 2.25
Earl Grey Deposit Kidman/SQM 189 1.5
Wodgina Mine Mineral Resources 259 1.17
Pilgangoora Mine Pilbara Minerals 226 1.27
Mt Marion Mine Nometals/Gan gfeng 71.3 1.09
Pilgangoora Mine Altura Minin g 50.5 1.01
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Project Company Mineral Resource (Mt) Grade (Li 2O%)
Bald Hill Mine Alliance Mineral Assets 18.9 1.18
Mt Cattlin Mine Galax y Resources 16.7 1.28
MT Kathleen Liontown Resources 21.2 1.4
Total / Average 988.4 1.42
Table 1. Hard Rock Lithium Resources in Western Australia
In the past decade, six new lithium mining operations have atta ined commercial production from
lithium oxide mineralization associated with pegmatites throughout Western Australia. Three new
lithium refineries are being either proposed or currently being constructed in Western Australia as
the area becomes an increasingly important source of global lit hium production. Historical
exploration for gold and base metals has identified large, Archaean aged greenstone belts hosting
large pegmatite bodies that are untested for lithium mineraliza tion and therefore represent a
compelling exploration opportunity.
Lithium oxide from hard rock sources offers reduced development costs and faster production
timelines than other sources of lithium. This is a great advant age over lithium brine exploration
and bankable feasibility cost.
Demand for lithium hydroxide is expected to increase as lithium chemical producers seek greater
supply.
The technical content of this news release has been reviewed an d approved Wes Hanson, P.Geo.,
a director of the Company and a Qualified Person pursuant to Na tional Instrument 43-101. The
qualified person has not yet visi ted the Southern Lithium Proje c t s , a n d t h e r e f o r e h a s n o t y e t
verified the data disclosed, including sampling, analytical, and test data underlying the information
or opinions contained in the written disclosure.
About BlueBird Battery Metals
BlueBird Battery Metals (TSXV: BATT; US: BBBMF) owns a strong, prospective portfolio of
battery metal projects in a sta ble, low-risk jurisdiction. The Company is led by an experienced
team and is aggressively advancing its assets, which collective ly host copper, cobalt, lithium,
nickel, and vanadium mineralization. BlueBird is pursuing a bus iness model that delivers direct
and long-term leverage to the pr ice appreciation in nickel, lit hium and cobalt, three principal
materials in EV and energy storage batteries. The battery meta l sector is overly-reliant on high-
risk mining jurisdictions such as the DRC, the Philippines and South America and this has created
a vulnerable supply chain. In contrast, the Company plans to become a leader in the battery metals
sector by advancing its portfolio in Western Australia, a growing hub of battery metal production,
while also reviewing new acquisition opportunities.
On Behalf of the Board of BlueBird Battery Metals Inc.
Nav Dhaliwal
CEO
For more information, please contact 1-855-584-0160 or [email protected].
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This news release may contain or refer to forward-looking information based on current expectations, including, but
not limited to the Company achieving success in exploring its properties and the impact on the Company of these
events, including the effect on its share price. Forward- looking information is subj ect to significant risks and
uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided
as of the date hereof and we assume no responsibility to up date or revise such information to reflect new events or
circumstances. References to other issuers with nearby projects is for information purposes only and there are no
assurances the Company will achieve similar results.
Neither TSX Venture Exchange, the Toronto Stock Exchange nor their Regulation Services Provider (as that term is
defined in the policies of the TSX Ve nture Exchange) accepts responsibility for the adequacy or accuracy of this
release.