In a press release, the Canadian company said the purchase price consists of 75,000 common shares in Pure Energy stock and payment of $30,000 to TR Trust in consideration for TR Trust’s right, title and interest, as well as a 2% NSR royalty interest, in a share purchase agreement dated February 15, 2016, between Lithium X Energy Corp., 1061582 B.C. Ltd. and LT Capital Holdings. Pure Energy became a party to this agreement when it acquired the mineral claims and made a $2-million investment in Lithium X in May 2017.
“Pure Energy is pleased to have retired the underlying royalty obligation covering part of the Clayton Valley project by amicable arrangement with the previous royalty holder,” Mary Little, Pure Energy’s director, said in a media statement. “The royalty purchase further streamlines the company’s ability to maximize shareholder value.”
The Vancouver-based miner is exploring and developing, together with partner Schlumberger New Energy, the 9,450-hectare Clayton Valley project, the largest mineral land holdings in the area, which adjoins and surrounds on three sides the Silver Peak lithium brine mine operated by Albemarle Corporation.
SNE is developing a lithium extraction pilot plant for the project, which uses a differentiated direct lithium extraction process (DLE) to enable the production of high-purity, battery-grade lithium material while reducing the production time from over a year to weeks.