$ENRT Lithium LOI NEWS OUT!
Enertopia Announces New Lithium Business Division and
Closed Letter of Intent
Vancouver, BC—Enertopia Corporation (ENRT-OTCQB) (TOP-CSE) (the "Company" or "Enertopia") announces that it has created a new business division that will be dedicated to creating value through natural resource acquisition in the Lithium brine exploration and exploitation sector.
The Company is pleased to announce that it has entered into a letter of intent (“LOI”) dated April 21, 2016 with S P W Inc. (the “Vendor”) respecting the proposed option to purchase a 100% interest in approximately 2,560 acres of placer mining claims in Nevada, USA. These placer mining claims are subject to a 1.5% NSR from commercial production with the Company able to buy back the NSR at the rate of $500,000 per 0.5% NSR.
During Enertopia’s history, directly and indirectly through associates, it has obtained and utilized valuable knowledge in sometimes diverse sectors. These have included the latest thinking in metallurgy from the mining and resource sectors; the utilization of advanced technologies in renewable energy and water filtration; and the delivery of nutrients and also minerals in the pursuit of maximizing botanical growth. Separately, each of these had its own applications within specific fields. Together, the Company has realized there is great potential for a unique understanding and perspective that can be of value to all.
In order to maximize the potential of the unifying concepts of the above technologies and more, Enertopia has decided to attempt to leverage its unique knowledge base and assemble disparate knowledge bases with specific applications to the Lithium market. Lithium is a 21st Century metal that is just now coming into prominence due the accelerating pace of technological change. It was only ten years ago that technology allowed fracking to go mainstream and in the past five years this technology has shaken the World oil, natural gas and LNG markets. We could see Lithium and other new storage technologies having similar disruption capabilities over the coming decade.
Upon execution of the LOI, the Company provided a USD$7,000 deposit to the Vendor. In order to earn its 100% interest, the Company is required to make aggregate cash payments of USD$60,500 over one year and issue an aggregate of 3,500,000 shares of its common stock on signing of the Definitive agreement and up to an additional 3,000,000 success shares based on the successful drilling of a Lithium enriched brine aquifer with a minimum Lithium average content of 300 ppm over 100 feet of liquid brine reservoir.
“The lithium market is undergoing a structural shift with accelerating demand growth and many analysts believe this rapid growth rate will be sustainable well into the next decade. Today’s Technologies now allow for easy access for the night time storage of electricity at far lower rates than daytime peak demand hours, so whether one is using Tesla’s Powerwall Lithium battery storage system or AES Energy Lithium Storage, it has never been easier to find a storage platform for electricity. Hopefully our society will move to storing more energy at night instead of letting it go down the line unused and thus wasted while we are sleeping. Today our society has the technology options to produce and capture electricity like never before. Rather than building expensive, environmentally destructive and outdated hydro projects that could burden our children with even more debt for decades to come we need to look forward into the next decade and not backwards. The Company believes that its learned knowledge in the mining and clean tech sector’s and network of technical advisors offer the ability for the Company to leverage this knowledge to being a potential low cost producer in the Lithium sector,” said Robert McAllister, President.
The proposed transaction remains subject to, among other things, the Company and the Vendor entering into a formal agreement, completion of satisfactory due diligence by the Company and receipt of all requisite regulatory and other approvals. There can be no assurance that the acquisition will be completed as proposed or at all.
