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Pure Energy Minerals Enters into Agreements to Advance the Clayton Valley Lithium Project
Vancouver, British Columbia--(Newsfile Corp. - May 1, 2019) - Pure Energy Minerals Limited (TSXV: PE) (the "Company" or "Pure Energy") is pleased to announce th
About this update from Pure Energy Minerals Ltd.
[{"type":"text","content":" Vancouver, British Columbia--(Newsfile Corp. - May 1, 2019) - Pure Energy Minerals Limited (TSXV: PE) (the \"Company\" or \"Pure Energy\") is pleased to announce that it has reached agreement with subsidiaries of Schlumberger Limited (collectively, the \"Investor\") on the terms of an earn-in agreement (the \"Earn-In Agreement\") providing for the development of the Company's Clayton Valley lithium project in Nevada (the \"Clayton Valley Project\"). Under the Earn-In Agreement, the Company has granted an option (the \"Option\") in favour of the Investor to acquire all of the Company's interests in the Clayton Valley Project (the \"Transaction\"). The Investor may earn into the Option by constructing a pilot plant for the processing of lithium brine (the \"Pilot Plant\") at its cost and expense. The Investor has a three-year period in which to exercise the Option (commencing on the receipt of the final federal and state permits required to construct the Pilot Plant) and may only exercise the Option if it has completed construction of the Pilot Plant and test work which achieves certain parameters. Upon exercise of the Option, the Company will be entitled to a 3.0% net smelter returns royalty on minerals produced at the Clayton Valley Project and an advance minimum royalty payment of US$400,000 per year starting January 1, 2021 for a period of five years or until the Clayton Valley Project achieves commercial production. The Transaction, which is the result of negotiations between arm's length parties, is subject to the approval of Pure Energy shareholders and other customary conditions (including the approval of the TSX Venture Exchange). The Company has called an Annual General and Special Meeting of its shareholders for May 28, 2019 (the \"Meeting\") to consider and approve the Transaction, and expects the Transaction to become effective shortly following the Meeting. The Company intends to mail an information circular in respect of the Meeting containing additional details regarding the Transaction to Pure Energy shareholders in the coming days. Upon the Transaction becoming effective, the Investor has also agreed to invest US$1,500,000 in the Company on a private placement basis (the \"Placement\") for 32,421,737 common shares to be issued at a price per common share of $0.0615. The Company intends to use the proceeds o...