RB Energy to Initiate Sale for Aguas Blancas

Battery Metals

RB Energy (TSX:RBI,OTCQX:RBEIF) reported positive progress in the commissioning of its Quebec lithium plant in its recent corporate update, and also reported that it will initiate the sale of its Aguas Blancas iodine operation in order to focus more closely on the lithium space.

RB Energy (TSX:RBI,OTCQX:RBEIF) reported positive progress in the commissioning of its Quebec lithium plant in its recent corporate update, and also reported that it will initiate the sale of its Aguas Blancas iodine operation in order to focus more closely on the lithium space.

As quoted in the press release:

In anticipation of an increased production profile at Quebec Lithium, the Board of Directors has determined that it will focus the Company’s business and management efforts on lithium and as such will consider strategies to strengthen RBI’s balance sheet by reducing the current levels of debt. Further, the Company recognizes that the market is not attributing appropriate value to the Aguas Blancas iodine operation in Chile. The Company’s latest NI43-101 technical report dated December 19, 2013 reported an after-tax net present value of $156 million1 for Aguas Blancas at a discount rate of 10%.

Consequently, upon completion of the convertible debenture offering that the Company is currently undertaking (News Release dated September 15, 2014), the Company plans to initiate a formal process to identify opportunities to maximize value for Aguas Blancas. Any proceeds from a sale of some or all of the Company’s interest in Aguas Blancas as a result of such strategic process would be used to improve the financial position of the Company. If Aguas Blancas were sold in its entirety, RB Energy would become a pure lithium story with the only hard rock lithium operation in North America.

Click here to read the RB Energy (TSX:RBI) press release

See this press release on Marketwire

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