- LTMCF’s subsidiary, Kairos Metals, will assume ownership of the company’s copper/gold/silver portfolio
- Lithium Chile owns properties in 14 salars and one laguna complex, covering 152,900 hectares
- Salar de Atacama is the source of 35 percent of global lithium production
- Global demand for lithium-ion batteries is forecast to surpass $53 billion by 2024
Lithium Chile Inc. (TSX.V: LITH) (OTC: LTMCF), a Canada-based company focused primarily on advancing its lithium property portfolio, announced on May 9, 2018, that it had completed the “spin out” transaction of its subsidiary, Kairos Metals Corporation. Kairos Metals will operate as a stand-alone company with ownership of the copper/gold/silver property portfolio previously held within Lithium Chile (http://ibn.fm/aeSpn).
In terms of the transaction arrangement, each Lithium Chile shareholder will receive one common share of Kairos Metals for every four common shares of Lithium Chile held on May 7, 2018. This arrangement remains subject to the final approval of the TSX Venture Exchange. Resulting from this arrangement, Kairos Metals is now a reporting issuer pursuant to applicable securities laws, and it will be focused on advancing a copper/gold/silver portfolio of 28,184 hectares over six projects in Chile.
Shareholders whose Lithium Chile shares are held by a broker or any other intermediary should contact their intermediaries to process application for their Kairos Metals shares pursuant to the arrangement. Registered Lithium Chile shareholders will receive confirmation of a book-entry deposit of their Kairos Metals shares directly from the Kairos Metals transfer agent.
Following the announcement, Steve Cochrane, president and CEO of Lithium Chile, said, “We are pleased with the closing of this transaction. It creates two distinct resource companies that can now focus their energies and resources on developing their respective assets for the benefit of Lithium Chile shareholders.”
Lithium Chile is advancing one of the largest lithium-rich exploration portfolios in Chile, consisting of over 152,900 hectares covering 14 salars, or mineral salt flats, and one laguna complex. These wholly owned properties include 66 square kilometers on the Salar de Atacama. The largest of Chile’s mineral salt flats, it hosts the world’s highest concentration of lithium brine production and is currently the source of around 35 percent of the world’s lithium production.
The company’s portfolio includes properties in other lithium-rich Chilean salars, including Salar de Coipasa, Salar de Helados, Salar de Turi, Salar de Ollague and Salar de Talar. Exploratory surface and near-surface salt and brine sampling programs have been completed on all of Lithium Chile’s properties. These show excellent chemistry of lithium to potassium and lithium to magnesium ratios, which is important for the reduction of overall production cost.
Lithium Chile has identified multiple high-priority brine target areas at its Atacama and Ollague lithium project areas. Salar de Atacama is home to the world’s largest and highest-grade lithium brine producers. It spans an area of 1,200 square miles and is the world’s third largest salt flat after Salinas Grandes, Argentina and El Salar de Uyuni in Bolivia. The company is planning exploration drilling and resource definition drilling programs for 2018.
There has been a surge in global demand for lithium-ion batteries, a market that’s projected to surpass $53 billion by 2024 as governments around the world aggressively seek to ban fossil fuel-powered vehicles (http://ibn.fm/GYGok). This has impelled major automotive manufacturers to invest billions in new technology and electric vehicles powered by these batteries. Chile’s mining-friendly jurisdiction offers Lithium Chile a streamlined permitting process and highly cost-effective lithium production of about $1,800 per ton, as compared to $5,000 per ton in Australia.
For more information, visit the company’s website at http://ibn.fm/LTMCF
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