Alix Resources Corp. (TSXV: AIX) and Lithium Australia(ASX: LIT) updated the market on their progress at their Electra Project in Sonora, Mexico. Sonora is Mexico’s second largest state and the project is located to the northwest of the country.
The Electra Project comprises two concessions, namely the Tule and Tecolote Concession, spanning 22,625 hectares.
Both concessions are thought to contain lithium-bearing clays that extend from the Sonora Lithium Project, a JV between Bacanora Minerals and Rare Earth Minerals (REM). One of the Electra Project concessions is contiguous to the Sonora Lithium Project to the north and the hope is that, through the exploration programme, the Company will be able to prove the existence of lithium-rich clays similar to that of Bacanora/REM. The aim of the partnership between Lithium Australia (LIT) and Alix Resources (Alix) is to provide a superior processing alternative to enhance the value of the lithium-bearing clays.
Consequently, LIT and Alix have signed a definitive agreement to explore the Electra Project, the terms of which entitle Lithium Australia to 49% interest in the Project through the issuance of 1m shares to Alix and expenditures of $400,000.
In addition, Lithium Australia has the option to increase its share in the Electra Project to 65% through a further issuance of 1.5 million ordinary shares to Alix and a cash payment of $250,000.
On the 14th of October, Alix reported that it had achieved its objective on its Tecolote concession. The Company identified two target areas on the said concession. The first target, on the eastern area, is approximately 1,100m long by 250-to-400m wide. The second target measures around 400m by 150m.
Phase 1 reverse circulation (RC) drill program to test the two target areas recently received approval and authorization from the Ejido community regarding the owner/co-op rights. In addition, the Company received an application for the environmental permit on the Tecolote concession to complete up to 25 RC drill holes and rehabilitation of existing roads as needed.
Original Article: http://investorintel.com/technology-metals-intel/alix-lithium-australia-announces-definitive-agreement/
