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MGX Minerals says lithium bench testing underway on Case Lake bulk sample

Last updated: 00:02 01 Aug 2018 AEST, First published: 19:02 31 Jul 2018 AEST

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The aim of the lab work is to create a 95% purity concentrate

Energy metals group MGX Minerals Inc (CSE:XMG, OTCQB: MGXMF) has anounced another lithium milestone -  the start of bench testing of a 10kg bulk sample, which hails from its Case Lake lithium project in Ontario.

MGX has a 20% working interest in five lithium properties in Ontario, including Case Lake,  which is controlled by Power Metals.

READ THE BIG PIC: MGX Minerals primed for tomorrow's energy revolution with irons in many fires

The aim of the bench testing, which is being carried out by Orion Laboratories and Light Metals International Inc (LMI), is to extract lithium compounds and achieve a 95% pure spodumene concentrate.

Previous work by Orion and LMI has shown that this is achievable.

MGX, Orion and LMI are together jointly developing and working to commercialize a new process for extracting hard-rock lithium.

This technique is modular and highly scalable and has the potential to significantly decrease hard-rock lithium production costs, noted MGX.

MGX has agreed to acquire an initial 50% interest in the technology and associated intellectual property (IP) for an initial cash payment of US$250,000 and 100,000 MGX shares.

Initial proceeds will be used to complete bench-scale laboratory testing of the technology.

READ: MGX Minerals identifies high grade lithium at Paterson Lake; set for geophysical survey at Salinitas lithium project

Upon successful completion of lab testing, MGX has agreed to issue a further 250,000  shares.

The company could then fund development of a modular manufacturing plant, and upon development and testing of that plant, MGX will have the option to issue a further 500,000 shares to LMI.

Then, a joint venture will be formed with MGX holding a 70% interest and LMI a 30% interest.

MGX will have the option to buy a 100% interest in the joint venture at any time for C$10 million.

Shares are unchanged in Toronto at C$0.87.

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on 16/12/17