TORONTO, Jan. 22, 2019 /CNW/ - Namibian lithium developer
Desert Lion Energy Inc. (TSXV: DLI) (OTCQB: DSLEF) ("Desert
Lion" or the "Company") is pleased to announce that it
has successfully completed the acquisition of Exclusive Prospecting
License ("EPL") 5718 and has fulfilled its commitments in
connection with the issuance of the Phase 2 Mining License
(ML204).
Closing of EPL 5718
EPL 5718 covers an area of
200km2 and is located immediately adjacent to and south
of Desert Lion's existing EPL 5439 and contains several priority
structural targets that are considered to host Lithium – Caesium –
Tantalum ("LCT") type pegmatites.
As part of the Transfer Agreement, Desert Lion paid
approximately C$130,000 cash and
80,906 common shares of the Company, of which C$30,000 was paid in cash on execution of the
Transfer Agreement. An additional cash payment of approximately
C$100,000 was paid upon completion of
the transfer to Desert Lion.
Desert Lion is currently in the process of completing the
acquisition of an additional EPL, EPL 5555 that covers an area of
553 km2. EPL 5555 is located adjacent to and immediately
west of EPL 5439 and is known to contain several LCT type pegmatite
occurrences and workings.
Both EPL's are largely underexplored with respect to LCT type
pegmatite mineralization, and contain host Pan African age (500Ma)
syn and post tectonic granites that are considered to be sources of
LCT type pegmatites. Abundant late stage pegmatites have been
mapped intruding both EPLs; these are thought to have been emplaced
during the end of phases of granite intrusion and are therefore
considered highly prospective.
The acquisition of EPL 5718 and pending acquisition of EPL 5555
will increase the Company's ground holding in this prospective part
of the southern pegmatite field in Namibia's Erongo Region. Upon closing of the
acquisition of EPL 5555, the Company's ground holdings in
Namibia will cover a total of
1,054km2.
"We are excited to have acquired EPL 5718," commented
Tim Johnston, CEO of Desert Lion
Energy Inc. "This EPL represents significant optionality for our
organic growth profile, which we plan on testing as we move forward
with our 2019 exploration program."
Mining License Share Issuance
Following the issuance
of the Phase 2 Mining License (ML204), announced August 27, 2018, the Company has fulfilled the
requirement of issue of 476,190 common shares to Desert Lion's
local partner group, Huni Holdings (Pty) Ltd.
In accordance with applicable securities laws, the issuances of
common shares described herein are subject to TSXV approval and
will be subject to a hold period of four months and one day from
the date of completion of settlement.
About Desert Lion Energy
Desert Lion Energy is an
emerging lithium development company focused on building
Namibia's first large-scale
lithium mine to be located approximately 210 km from the nation's
capital of Windhoek and 220 km
from the Port of Walvis Bay. The Company's Rubicon and Helikon
mines are located within a 501 km2 prospective land
package, with known lithium bearing pegmatitic mineralization and
the Company is currently in Phase 1 of its production plan,
producing and exporting lithium concentrate from stockpiled
material. The project site is accessible year-round by road and has
access to power, water, rail, port, airport and communication
infrastructure.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking information"
within the meaning of applicable securities laws. Generally, any
statements that are not historical facts may contain
forward-looking information, and forward-looking information can be
identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget"
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or indicates that certain actions, events or results
"may", "could", "would", "might" or "will be" taken, "occur" or "be
achieved." Forward-looking information is based on certain factors
and assumptions management believes to be reasonable at the
time such statements are made, including but not limited to,
continued exploration activities, lithium and other metal prices,
the estimation of initial and sustaining capital requirements, the
estimation of labour and production costs, the estimation of
mineral reserves and resources, assumptions with respect to
currency fluctuations, the timing and amount of future exploration
and development expenditures, receipt of required regulatory
approvals, the availability of necessary financing for the Project,
permitting and such other assumptions and factors as set out
herein.
Forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of the
Company to be materially different from those expressed or implied
by such forward-looking information, including but not limited to:
risks related to changes in lithium prices; sources and cost of
power and water for the Project; the estimation of initial capital
requirements; the lack of historical operations; the estimation of
labour and operating costs; general global markets and economic
conditions; risks associated with exploration, development and
operations of mineral deposits; the estimation of initial targeted
mineral resource tonnage and grade for the Project; risks
associated with uninsurable risks arising during the course of
exploration, development and production; risks associated with the
estimation of targeted production tonnages from Phase 1 operations;
risks associated with currency fluctuations; environmental risks;
competition faced in securing experienced personnel; access to
adequate infrastructure to support exploration activities; risks
associated with changes in the mining regulatory regime governing
the Company and the Project; completion of the environmental
assessment process; risks related to regulatory and permitting
delays; risks related to potential conflicts of interest; the
reliance on key personnel; financing, capitalization and liquidity
risks including the risk that the financing necessary to fund
continued exploration and development activities at the Project may
not be available on satisfactory terms, or at all; the risk of
potential dilution through the issuance of additional common shares
of the Company; the risk of litigation.
Although the Company has attempted to identify important
factors that cause results not to be as anticipated, estimated or
intended, there can be no assurance that such forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance
on forward-looking information. Forward-looking information is made
as of the date of this presentation and the Company does not
undertake to update or revise any forward-looking information this
is included herein, except in accordance with applicable securities
laws.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE
SOURCE Desert Lion Energy