MGX Minerals Acquires 100% Interest in Alberta Lithium Properties

Spotlight Companies |

MGX Minerals, Inc. (CSE: MGX), a diversified Canadian mining company, announced today that they have entered into a purchase agreement with Zimtu CapitalCorp. (TSX.V: ZC), DGResource Management Ltd., and Ridge Resources Ltd. to acquire a 100% undivided interest in 12 Metallic and Industrial Mineral Permits and Permit Applications encompassing 96,000 hectares throughout the Province of Alberta.

The Properties were acquired based on compilation of historic oil and gas well data and known geology. Lithium, potassium, and magnesium rich brines have been identified with historic levels of lithium reported up to 140 Mg/L. This is the highest reported levels of lithium for existing wells in the province as reported in the industry database. The company is currently in discussion with scientists, geologists and engineers, along with oil industry experts, to determine the best path forward for the development of MGX's lithium assets.

“MGX has acquired these Permits with the long-term strategic goal of turning Alberta’s barren oil fields into producers of lithium compounds used in the new energy industry,” said Jared Lazerson, President and CEO of MGX Minerals. “We believe Alberta offers a significant advantage over traditional lithium brine locations globally with an extensive infrastructure including roads, equipment, skilled labor and capital.

The Vancouver-based company is engaged in the acquisition and development of industrial mineral deposits in western Canada that offer near-term production potential, minimal barriers to entry and low initial capital expenditures. Among their long-term strategic business objectives includes constructing a quarry mine and processing plant to produce magnesium oxide from Driftwood Creek.

This month alone, MGX Minerals has reported a number of operational highlights, including:

  • Announcing the approval of the company’s Mining Lease application for its Driftwood Creek magnesium project by the Chief Gold Commissioner of the Province of British Columbia.
  • Entering into a comprehensive development agreement with Dominion Excavating Ltd, with Dominion providing services for MGX’s promising Driftwood Creek Property in southeastern British Columbia in exchange for an equity stake, including road construction and mine development.

MGX Minerals continues to show strong growth prospects in 2016. With this significant purchase agreement, the company has now made their move into the lithium sector. “Large lithium resources have traditionally been associated with remote locations and long development times,” said Lazerson. “We may have solved this problem.”

For more information about MGX Minerals, visit www.mgxminerals.com.

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