LSC Lithium Announces Closing of Joint Venture With Litica Resources, a Pluspetrol Company, and Receipt of Regulatory Approval to Explore Arizaro Salar
TORONTO, Nov. 12, 2018 (GLOBE NEWSWIRE) — LSC Lithium Corporation (“LSC” or together with its subsidiaries, the “Company”) (TSXV:LSC) is pleased to announce that it has closed the previously announced joint venture (the “Joint Venture”) with Litica Resources, a wholly owned subsidiary of Pluspetrol (“Litica Resources”), a leading private oil and gas company. LSC and Litica Resources have entered into the 40/60 Joint Venture to explore and develop tenements on the Salar de Arizaro lithium project (“Arizaro Project”) in the Salta Province of Argentina. LSC is also pleased to announce that it has received Environmental Impact Assessment (“EIA”) approval for the Joint Venture to commence advanced lithium exploration activities at the Arizaro Project.
The Company’s President and CEO, Ian Stalker, commented, “We are very pleased to announce the closing of the Joint Venture with Pluspetrol. Pluspetrol has a track record of success in the oil and gas industry and one of the principle objectives of the Joint Venture is to lever the technical experience of Pluspetrol and apply it to the lithium industry to successfully advance the Arizaro Project. We are excited about Pluspetrol’s commitment to the lithium business and look forward to the long-term partnership as we commence work at Arizaro.”
LSC has received all the required permitting for the Joint Venture to begin advanced exploration at the Arizaro Project. The parties have agreed to a results driven three-phase exploration work program whereby Litica Resources, as operator, will commence with geological mapping, surface geophysical surveys, followed by sub-surface brine sampling and core drill holes to evaluate the brine chemistry and host rock parameters, with the intention of completing a maiden resource statement. The first stage of the exploration program is expected to commence imminently.
Pursuant to the terms of the Joint Venture, Litica Resources will be the operator of the Arizaro Project and has committed a total of US$6,868,000 to LSC and the Joint Venture over the three-stage exploration program to maintain its 60% ownership. In connection with the closing of the Joint Venture, LSC has received an initial lump-sum payment of US$625,000 from Litica Resources.
Pluspetrol is a private, independent, international company with over 40 years of experience in the exploration and production of oil and gas. Present in Angola, Argentina, Bolivia, Colombia, Netherlands, Peru, United States, Uruguay and Venezuela, Pluspetrol promotes energy development and fosters activities at an international level. Pluspetrol is a leader in the operation of high-pressure gas fields and the extraction of oil in mature fields with secondary and tertiary recovery. With a view to the future, the company is making significant investments in Argentina, and it is particularly well-positioned in the Neuquén Basin in Argentina, the location of the Vaca Muerta shale formation, one of the largest unconventional oil and gas reservoirs.
Engagement of Marketing Consultant
LSC has engaged Digital257 Technologies Inc. (“Digital257”) for a committed period of 12 months to provide digital media and capital markets communications services (inclusive of marketing fees and expenses) at a cost of USD$20,833 per month (with approximately half of the amount allocated to third party marketing fees and other third party expenses) which amount has been pre-paid by LSC for the committed period of the contract. Digital257 is a private firm specializing in investor relations and strategic and digital communications. Digital257’s services include initiating and maintaining contact with the financial community, the Company’s shareholders, investors and other stakeholders for the purpose of increasing awareness of the Company and its activities. To the knowledge of LSC, Digital257 does not have any interest, directly or indirectly, in the Company or its securities, or any right or intent to acquire such an interest. The appointment of Digital257 is subject to TSX Venture Exchange approval.
ABOUT LSC LITHIUM CORPORATION:
LSC Lithium has amassed a large portfolio of prospective lithium rich salars and is focused on developing its material projects: Pozuelos and Pastos Grandes Project, Rio Grande Project and Salinas Grandes Project. All LSC tenements are located in the “Lithium Triangle,” an area at the intersection of Argentina, Bolivia, and Chile where the world’s most abundant lithium brine deposits are found. LSC Lithium has a land package portfolio totaling approximately 300,000 hectares, which represents extensive lithium prospective salar holdings in Argentina.
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Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or future performance, including statements regarding the timing for commencing exploration on the Arizaro Project, likelihood of future opportunities, timing and ability to complete a maiden resource statement on the Arizaro Project, ability to obtain any regulatory approvals, if applicable, ability and timing to complete the work-program, results and outcome of the work program on the Arizaro Project, ability of both LSC and Pluspetrol to fund the Joint Venture and ongoing relationship with Pluspetrol. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on LSC’s current belief or assumptions as to the outcome and timing of such future events. Whether actual results and developments will conform with LSC’s expectations is subject to a number of risks and uncertainties including factors underlying management’s assumptions, including risks related to: title, permitting and regulatory risks; exploration and the establishment of any resources or reserves on the Arizaro Project or other LSC properties; volatility in lithium prices and the market for lithium; exchange rate fluctuations; volatility in LSC’s share price; the requirement for significant additional funds for development that may not be available; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; regulatory, political or economic developments in Argentina or elsewhere; litigation; title, permit or license disputes related to interests on any of the properties in which the Company holds an interest; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the Company’s properties; risks and hazards associated with the business of development and mining on any of the Company’s properties, the ability to the Company to raise funds to carry on its operations, the ability of the Company to advance its projects, future demand of lithium as a critical commodity, and the outcome of the closing of the Transaction. Actual future results may differ materially. The forward-looking information contained in this release is made as of the date hereof and LSC is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein. For more information see the Company’s filing statement on SEDAR at www.sedar.com.
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The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release.