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MGX Minerals set to expand Utah footprint with new leases
MGX Minerals Inc (CNSX:MGX) has struck a deal, which sees it set to increase its footprint in Utah.
It is set to acquire a 75% working interest in certain oil and gas leases contiguous to its Lisbon Valley petrolithium project via a joint operating agreement with a private vendor.
The leases cover portions of San Juan County, Utah and San Miguel County, Colorado and provide access to the brine-bearing aquifer systems within the Lisbon Valley area of the Paradox Basin.
Once the agreement is closed, preparations will begin to permit the Petrolithium Number 1 borehole well.
The company plans to conduct well-sampling and collect seismic data to advance hydrogeological understanding
MGX is developing large -scale industrial mineral portfolios in western Canada and the USA.
In January this year, the firm successfully extracted lithium from oil sands wastewater, and with partner PurLucid is now preparing for deployment of the pilot plant shortly with commercial scale deployment expected during the second half of this year.
MGX’s process potentially reduces recovery times of lithium and other valuable minerals from 18 months to one day, compared with conventional lithium extraction.
To earn a 75% working interest, MGX must make payments totaling US$2mln on or before September 1, 2018 . It can choose to accelerate payments and issue consideration totaling $1.7mln on or before September 1, 2017, in which case the vendor will waive any additional payments due.
MGX has granted the vendor a ‘carry period’ whereby MGX shall be responsible for all expenses.
This will be satisfied once MGX has made all required payments or drilled at least one well on the Leases on or before February 28, 2020.
Upon satisfying these conditions MGX shall earn an undivided 75% working interest and the seller shall be responsible to contribute proportionate expenses equal to their interest
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/175313/mgx-minerals-set-to-expand-utah-footprint-with-new-leases-175313.html
