Montreal, Quebec / TheNewswire / August 8, 2018 - St-Georges Eco-Mining Ltd. (CSE: SX) (OTC: SXOOF) (FSE: 85G1) is pleased to announce that it has signed a binding term sheet with Hipo Resources Ltd (ASX: HIP), a public company based in Australia.
St-Georges has agreed to provide research and development utilizing products, extraction methods and proprietary technology to develop Hipo's Democratic Republic of Congo lithium project in separation, recovery, and purification of lithium from its lithium-bearing material.
In consideration for the R&D, which will include engineering services, and once a definitive agreement has been entered into, Hipo Resources Ltd. will issue to St-Georges up to 27,000,000 common shares of its capital stock. The issuance will be done in stages over a 36-month period commencing on the date of execution of the definitive agreement, contingent on St-Georges reaching certain performance benchmarks over the 36-month period according to the schedule below:
1,500,000 shares at signing
8,500,000 shares at Stage 1 Benchmark completion: which is defined by the delivery of an independent laboratory report commissioned by St-Georges, indicating positive viable lithium recoveries.
8,500,000 shares at Stage 2 Benchmark completion: defined by independent report describing results of initial pilot mining operations and the processing of a minimum of one (1) metric ton in a simulated industrial environment.
8,500,000 shares at Stage 3 Benchmark completion: defined by the receipt of either: a Preliminary Economical Assessment Report (PEA); a commercialization decision; the third (3rd) year anniversary of this agreement assuming all other issuances have been made.
St-Georges has agreed that shares issued will be subject to a 36 months escrow period.
The Parties will establish a royalty stream on the commercial output of the Kamola Lithium Project for the entire mine life subject to Hipo using St-Georges technology, which will be opposable to any successors of Hipo as a lien on the mining assets. St-Georges and Hipo will negotiate a right of first refusal in favour of Hipo. The royalty, of which further details will be defined in the definitive agreement within the guidelines of the "Royalty Formula" of the binding term sheet, will take the form of a 5% Net Revenue Interest or Net Revenue Return.
A further news release will be disseminated once the definitive agreement has been concluded. The definitive agreement will be subject to acceptance of the board of directors of both companies and subject to review by regulatory authorities.
Enrico Di Cesare, VP, Metallurgy & Director of St-Georges commented "St-Georges continues to apply innovation with known technologies coupled with newly developed technologies to address gaps for the recovery of non-traditional lithium resources. Our focus remains greener, less chemicals and more usable by-products unlocking value in non-traditional resources as the next generation of lithium supply to the growing battery market and its needs for this commodity.
Di Cesare further stated "Innovation is being applied to concentrating Lithium in Bonnie Claire clay in Nevada USA, which is owned by Iconic Minerals Ltd (TSX-V: ICM). In addition, St-Georges is also looking to initiate development with similar strategies for hard rock deposits in North America and other parts of the world. We do value and look forward to working with Hipo Resources in advancing the lithium potential of their DRC project."
ON BEHALF OF THE BOARD OF DIRECTORS
"Enrico Di Cesare"
ENRICO DI CESARE, DIRECTOR, VICE-PRESIDENT RESEARCH & DEVELOPMENT
St-Georges is developing new technologies to solve the some of the most common environmental problems in the mining industry. The Company controls directly or indirectly, through rights of first refusal, all the active mineral tenures in Iceland. It also explores for nickel on the Julie Nickel Project & for industrial minerals on Quebec's North Shore and for lithium and rare metals in Northern Quebec and in the Abitibi region. Head quartered in Montreal, St-Georges' stock is listed on the CSE under the symbol SX, on the US OTC under the Symbol SXOOF and on the Frankfurt Stock Exchange under the symbol 85G1.
The Canadian Securities Exchange (CSE) has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this release.