Cypress Development Enters into License Agreement with Chemionex for their DLE Technology & Equipment for Clayton Valley Lithium Project in Nevada

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[{"type":"text","content":" VANCOUVER, British Columbia, July 06, 2021 (GLOBE NEWSWIRE) -- Cypress Development Corp. (TSX-V: CYP) (OTCQB: CYDVF) (Frankfurt: C1Z1) (“Cypress” or “the Company”) is pleased to announce that it has entered into a share 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 payment 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 Amargosa 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. 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 ...

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