TORONTO, June 25, 2018 /CNW/ - Namibian lithium developer
and emerging lithium concentrate producer Desert Lion Energy Inc.
(TSXV: DLI) (OTCQB: DSLEF) ("Desert Lion" or the
"Company") today announces the grant of a 60-day extension
to the Company's off-take partner, Jiangxi Jinhui Lithium Co.
Limited ("Jinhui"), on their option to purchase 15% of the
common shares of Desert Lion for approximately C$13.0MM.
The lithium concentrate product, which was shipped to
China on April 24, 2018, is currently clearing customs and
is awaiting release. Jinhui will now have until August 22, 2018 to elect to exercise its equity
option. All other terms and conditions of the Offtake Agreement
remain unchanged.
"This extension demonstrates Jinhui's and Desert Lion's
continued commitment to this long-term partnership. We look forward
to growing this partnership in the months to come," stated Mr.
Johnston.
Production Update
The Company is currently producing coarse concentrate from
stockpiled material at an average rate of 500 tonnes (t)/day. The
second shipment of 30,000t of concentrate is expected to be
delivered to Walvis Bay in late July/early August, with a total of
60,000t of lithium concentrate expected to be produced by the end
of Q3 2018.
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 approximately 210km
from the nation's capital of Windhoek. The Company's Rubicon and Helikon
mines are located within a 301km2 prospective land
package, with known lithium bearing pegmatitic mineralization and
the Company is currently in Phase 1 of its production plan,
producing and exporting 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.
Cautionary Note Regarding 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 regarding the targeted additional
tonnage of lithium concentrate production from Phase 1 operations;
the exercise of the equity option by Jinhui pursuant to the Offtake
Agreement; and the Company's planned work program for the Project
and its exploration and development schedule and timetable.
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 the
estimation of targeted production tonnages from Phase 1 operations;
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.
NEITHER 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
SOURCE Desert Lion Energy
