April 14, 2020 / Vancouver, BC / NRG Metals Inc. (“NRG” or the “Company”) (TSX-V: NGZ) (OTCQB: NRGMF) (Frankfurt OGPN), the Company is pleased to announce it has entered into a cooperation agreement with Sino Lithium Materials Pty Ltd (Sino Lithium) and Chengdu Chemphys Chemical Industry Co. (Chemphys)(collectively Sino Li) for the advancement and development to potential lithium production, of the Hombre Muerto North Lithium Project (HMN Li Project), located in Salta Province, Argentina.
Sino Li has developed a proprietary lithium extraction process which could represent an alternative to the conventional evaporation process currently used in the industry. The process has the potential to significantly increase lithium recovery and reduce the production lead time compared the conventional processes. A summary of the agreement terms are as follows:
- Stage 1: Sino Li shall conduct laboratory analysis of brine from the HMN Li Project to determine the suitability its proprietary extraction technology. Upon completion of the analysis, the parties may decide to proceed to stage 2.
- Stage 2: Sino Li at its cost, shall engineer and build a pilot plant unit for testing at its China facility. Sino Li shall use synthetic brine calibrated to the project’s chemistry, and also a bulk brine sample obtained from the project, to demonstrate the results obtained in Stage 1 at its facility in China. Sino Li shall bear the total cost of the process which will be completed under the supervision of a Qualified Person as defined in National Instrument 43-101.
- Stage 3: Upon obtaining satisfactory results in Stage 2, Sino Li shall work with NRG to ship the pilot plant to the HMN Li Project site for testing utilizing Sino Li technical expertise. At the completion of this stage, Sino Li shall be deemed to have earned a 15% working interest in the HMN Li Project.
- Stage 4: Upon completion of Stage 3, Sino Li and NRG shall select an appropriate engineering firm, acceptable to NI 43-101 standards, to complete a Feasibility Study. NRG shall be responsible for 70% of the costs and Sino Li shall be responsible for 30% of the costs. Upon completion of a bankable positive feasibility study, Sino Li will be deemed to have earned a 30% working interest in the HMN Li Project.
NRG will remain the operator of the project. The parties shall work collectively under the Project Advisory Board using best business practices to ensure the timely development of the project. Subject to the earn in above, at funding, NRG and Sino Li shall be subject to straight line dilution. NRG and Sino Li intend to complete a formal Definitive Agreement prior to the initiation of Stage 3.
Stage 1 test work has begun at the Chemphys laboratory in Chengdu, China. Chemphys has over 20 years of lithium experience specializing in high purity (99.99+%) lithium carbonate and battery grade lithium hydroxide for the manufacturing of cathode materials and LiPF6 (key raw material for electrolyte) of lithium ion batteries. Their products are recognized by major lithium ion battery materials manufacturers and is an integral part of the electric vehicle supply chain.
On behalf of the board of directors of NRG Metals Inc.:
Adrian F. C. Hobkirk
President and Chief Executive Officer
Investors / Shareholders Call 855-415-8100 / email@example.com
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