NRG Metals Announces Strategic Alliance with Chemphys
October 18 2017 - 6:00AM
InvestorsHub NewsWire
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Vancouver, BC / October 17, 2017 -- InvestorsHub
NewsWire -- NRG Metals Inc. (“NRG” or the
“Company”) (TSX-V: NGZ) (OTCQB: NRGMF) (Frankfurt OGPN), is pleased to
announce that it has entered into a Letter of Intent (“LOI”) with
Chengdu Chemphys Chemical Industry Co., Ltd. (“Chemphys’) located
in Chengdu, China, regarding the further exploration and
development of the Hombre Muerto North Lithium Project (“HMNLP”).
The LOI also includes a Lithium Offtake Sales Agreement and various
other terms as discussed below.
ABOUT CHEMPHYS
Chemphys was established in 1998, and has since grown into a
high-tech enterprise, both ISO9001 and ISO14001 certified. The
company specializes in the production of high purity (99.99%)
Lithium Carbonate and battery grade Lithium Hydroxide for the
manufacturing of cathode materials and electrolytes of lithium ion
batteries. Chemphys was one of the first Chinese suppliers to
export high purity Lithium Carbonate and battery grade Lithium
Hydroxide to leading cathode materials and lithium
hexafluorphosphate manufacturers in Japan and South Korea. Chemphys
also produces 99.995% Lithium Carbonate which is used to
manufacture single crystal substrates for surface acoustic wave and
integrated optic devices. In addition, the company produces high
purity Lithium Carbonate and Boric Acid for the production of
fusion fluxes, Lithium Borates for XRF analysis, and numerous other
specialized materials. Chemphys has a strong research and
development capability and works closely with customers to develop
new materials. Chemphys product is recognized by all major lithium
ion battery materials manufacturers and is an integral part of the
electric vehicle supply chain.
TERMS OF LOI
The purpose of the LOI is to combine the development expertise
of NRG, with the high purity processing expertise of Chemphys. As a
part of this process, the two parties intend to complete a private
placement as described below for the financing of the HMNLP, which
is currently under exploration. The intent is to quickly evaluate
the project, and if deemed feasible (upon the completion of
exploration and due diligence, and satisfactory studies which may
include a Preliminary Economic Assessment), rapidly move the
project into production. In addition, NRG has agreed to an off-take
agreement with Chemphys for the sale of any lithium produced at
HMNLP, as well as a first right of refusal and first right of offer
for the sale of lithium produced at any other projects that NRG
moves forward, board representation and certain anti-dilution
provisions and a use of proceeds agreement.
The private placement discussed above will be placed with
investors acceptable to Chemphys. The private placement will
consist of units at CDN$0.10 per unit. Each unit will be comprised
of one common share and one transferable common share purchase
warrant exercisable for a period of three years at an exercise
price of CDN$0.20 per warrant. The total financing will represent
no less than 15% of the issued and outstanding shares of the
Company and it is anticipated that the financing will be
approximately 14,000,000 units for gross proceeds of CDN$1.4
million. The private placement funding was price protected
September 29, 2017 with the TSX Venture Exchange, will be reviewed
by the Exchange, and is subject to Exchange and Regulatory
Approval. No finder’s fee will be payable in connection with this
transaction.
Company President Adrian F.C. Hobkirk is quoted “We are very
pleased to have developed a relationship with one of the most
recognised producers of high purity lithium in the world. The
financial and technical support of Chemphys will greatly increase
the path for NRG to become a near term lithium producer in
Argentina. We are excited to be fast tracking and commencing the
exploration program at HMNLP. This project along with the drill
program at Salar Escondido will help NRG meet these
goals.”
Ms. Alison Dai, of Chemphys is quoted “We are excited to
establish a strategic partnership with NRG who have an
experienced team in place to develop the HMNLP and Salar Escondido.
We look forward to working closely with NRG’s team to
expedite the projects into production.”
On behalf of the board of directors of NRG Metals Inc.,
Adrian F.C.Hobkirk
President and C.E.O.
T: 714.316.3272
E: ahobkirk@nrgmetalsinc.com
W: www.nrgmetalsinc.com
The TSX Venture Exchange has not reviewed the content of
this news release and therefore does not accept responsibility or
liability for the adequacy or accuracy of the contents of this news
release.
This news release is not for distribution or dissemination in
the United States and accordingly, shall not constitute an offer of
securities in the United States. The securities that may be issued
pursuant to this news release are not currently qualified by
prospectus or registered under the U.S. Securities Act of 1933, as
amended (the “Securities Act”), or the laws of any state, and may
not be offered or sold in the United States, or to, or for the
account or benefit of United States persons (as defined in
Regulation S under the Securities Act) or persons in the United
States absent registration or an applicable exemption from the
registration requirements. The securities are subject to resale
restrictions under applicable securities laws.
This news release contains certain “forward- looking statements”
within the meaning of Section 21E of the United States Securities
and Exchange Act of 1934, as amended. Except for statements of
historical fact relating to the Company, certain information
contained herein constitutes forward- looking statements.
Forward-looking statements are based upon opinions and estimates of
management at the date the statements are made, and are subject to
a variety of risks and uncertainties and other factors which could
cause actual results to differ materially from those projected in
the forward looking statements. The reader is cautioned not to
place undue reliance on forward-looking statements. The transaction
described in this news release is subject to a variety of
conditions and risks which include but are not limited to:
regulatory approval, shareholder approval, market conditions, legal
due diligence for claim validity, financing, political risk,
security risks at the property locations and other risks. As such,
the reader is cautioned that there can be no guarantee that this
transaction will complete as described in this news release. We
seek safe harbour.
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