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Western Lithium Starts Planned Lithium Demonstration Plant to Validate Low Cost Lithium Extraction Nevada Deposit
Feb. 13, 2014 10:30AM PST
Battery MetalsWestern Lithium USA Corporation, (TSX:WLC, OTCQX:WLCDF) has received a milestone payment of US$1.5 million pursuant to the Royalty Purchase Agreement with Orion Mine Finance (Master) Fund I LP, the company’s largest shareholder and a major New York investment fund, to be put towards building the planned Lithium Demonstration Plant expected to be operational in the fourth quarter of 2014
Western Lithium USA Corporation, (TSX:WLC, OTCQX:WLCDF) has received a milestone payment of US$1.5 million pursuant to the Royalty Purchase Agreement with Orion Mine Finance (Master) Fund I LP, the company’s largest shareholder and a major New York investment fund, to be put towards building the planned Lithium Demonstration Plant expected to be operational in the fourth quarter of 2014. Western Lithium intends to use the plant to collect design data for a definitive feasibility study and to demonstrate the viability of producing low cost lithium carbonate from its Kings Valley lithium-rich hectorite clay deposit in Nevada. The company has received a USA patent for its proprietary process for separating lithium and potassium byproduct compounds from lithium-rich clays. Based on its NI 43-101 Prefeasibility Study, the Project is forecast to have a comparably low first-quartile cost structure against new and incumbent lithium producers, and to generate a net present value of US$552 million at a discount rate of 8%.
Western Lithium CEO, Jay Chmelauskas commented:
In 2014, we see potential for renewed interest towards the expansion of the lithium sector, due to the rising adoption by mainstream consumers of hybrid, plug-in and electric vehicles, and energy storage devices that use lithium ion batteries. Lithium ion technology is becoming ubiquitous in products ranging from lithium battery powered bikes to garden tools. We are aggressively planning to have the Lithium Demonstration Plant operational in Germany in the fourth quarter of 2014, at a fully permitted facility complete with utilities and laboratory support. We will invite potential strategic partners, investors and stakeholders to visit the demonstration plant in Germany, where we expect to be able to demonstrate the advantages and cost competitiveness of producing lithium carbonate from our unique lithium clay.”