TORONTO, March 13, 2018 /CNW/ - Namibian lithium developer
and lithium concentrate producer Desert Lion Energy Inc. (TSXV:
DLI) ("Desert Lion" or the "Company") is pleased to announce that
it has entered definitive Transfer Agreements for the acquisition
of Exclusive Prospecting License 5555 and 5718 (the "Proposed
Transaction"), both located adjacent to its existing Exclusive
Prospecting Licenses ("EPL") 5439, where the historic Rubicon and
Helikon lithium mines are located (Figure 1).
EPL 5718 covers an area of 200km2 and is located
immediately adjacent to and south of Desert Lion's existing EPL
5439 and contains known Lithium – Cesium – Tantalum ("LCT") type
pegmatite occurrences. EPL 5555 covers an area of
553km2 and is located adjacent and immediately west of
EPL 5439, and also is believed to contain multiple LCT type
pegmatite occurrences and workings.
In separate Transfer Agreements, Desert Lion has agreed to pay
aggregate consideration of approximately C$180,000 for each of EPL 5555 and EPL 5718, of
which C$30,000 was paid in cash on
execution of the respective Transfer Agreement. An additional cash
payment of approximately C$100,000
will be paid on closing of each transaction and Desert Lion will
issue the respective vendors, in aggregate, a number of common
shares of Desert Lion equal to C$50,000 and at a price per share equal to the
closing price of Desert Lion's common shares on the TSX Venture
Exchange on the day immediately prior to closing.
Both EPLs are largely underexplored with respect to lithium
mineralization, and contain host Pan African age (500Ma) syn and
post tectonic granites that are considered to be the source of LCT
type pegmatites. Abundant late stage pegmatites intrude throughout
the EPL area, and these are thought to have been emplaced during
the end of phases of granite intrusion. The proposed acquisition of
these two EPLs represents an opportunity for the Company to
increase its ground holding in this prospective part of the
southern pegmatite field in Namibia's Erongo region. Upon closing of the
Proposed Transaction, the Company's ground holding in Namibia will cover a total of
1,054km2.
Closing of the Proposed Transaction is subject to receipt of
approval of the transfer of the EPL's to Desert Lion by the
Namibian Ministry of Mines and Energy as well as any required
regulatory approvals, including the TSX Venture Exchange.
"We are excited to have acquired EPL 5555 and 5718," commented
Tim Johnston, president and CEO of
Desert Lion Energy Inc. "These EPLs represent significant
optionality for our organic growth profile, which we plan on
testing as we move forward with our 2018 exploration program."
Qualified Person's Statement
The accuracy of the scientific and technical information in this
news release has been verified and approved by Mike Venter, Pr.Sci.Nat and VP Exploration for
Desert Lion, who is a Qualified Person as defined by National
Instrument 43-101 – Standards of Disclosure for Mineral Projects
("NI 43-101").
About Desert Lion Energy
Desert Lion Energy is an
emerging lithium development company focused on building
Namibia's first large-scale
lithium mine to be located 30 km south east of Karibib and
approximately 210 km from the nation's capital of Windhoek. The Company's Rubicon and Helikon
mines is located within a 301 km2 prospective land
package, with known lithium bearing pegmatitic mineralization and
the Company is currently in Phase 1 of its production plan,
producing lithium concentrate from stockpiled material. The project
site is accessible year-round by road and has access to power,
water, rail, port, airport and communication infrastructure.
Forward-Looking Statements
This news release
contains "forward-looking information" within the meaning of
applicable securities laws. Generally, any statements that are not
historical facts may contain forward-looking information, and
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget" "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or indicates
that certain actions, events or results "may", "could", "would",
"might" or "will be" taken, "occur" or "be achieved."
Forward-looking information includes, but is not limited to:
statements and expectations; and the Company's applications for
additional licenses.
Forward-looking information is based on certain factors and
assumptions management believes to be reasonable at the time
such statements are made, including but not limited to, continued
exploration activities, lithium and other metal prices, the
estimation of initial and sustaining capital requirements, the
estimation of labour and production costs, the estimation of
mineral reserves and resources, assumptions with respect to
currency fluctuations, the timing and amount of future exploration
and development expenditures, receipt of required regulatory
approvals, the availability of necessary financing for the Project,
permitting and such other assumptions and factors as set out
herein.
Forward-looking information is 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 information, including but not limited to:
risks related to changes in lithium prices; sources and cost of
power and water for the Project; the estimation of initial capital
requirements; the lack of historical operations; the estimation of
labour and operating costs; general global markets and economic
conditions; risks associated with exploration, development and
operations of mineral deposits; the estimation of initial targeted
mineral resource tonnage and grade for the Project; risks
associated with uninsurable risks arising during the course of
exploration, development and production; risks associated with
currency fluctuations; environmental risks; competition faced in
securing experienced personnel; access to adequate infrastructure
to support exploration activities; risks associated with changes in
the mining regulatory regime governing the Company and the Project;
completion of the environmental assessment process; risks related
to regulatory and permitting delays; risks related to potential
conflicts of interest; the reliance on key personnel; financing,
capitalization and liquidity risks including the risk that the
financing necessary to fund continued exploration and development
activities at the Project may not be available on satisfactory
terms, or at all; the risk of potential dilution through the
issuance of additional common shares of the Company; the risk of
litigation.
Although the Company has attempted to identify important
factors that cause results not to be as anticipated, estimated or
intended, there can be no assurance that such forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance
on forward-looking information. Forward-looking information is made
as of the date of this presentation and the Company does not
undertake to update or revise any forward-looking information this
is included herein, except in accordance with applicable securities
laws.
SOURCE Desert Lion Energy
