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VANCOUVER, BC –TheNewswire -
The two divisional patent applications are for natural brine and for slurries made from pegmatite, clay, volcanic rock and sediment(the “OWL Divisionals”).Additional patents may be filed in the future as a result of the research & development (“R&D”) work to be carried out with MG.
The LOI is a non-binding agreement and sets out the principal terms on which the parties have agreed to complete the Assignment and License Back (as defined below). Subject to satisfactory due diligence and successful additional negotiations, the parties intend to enter into a definitive agreement with respect to the Assignment and License Back (the “Definitive Agreement”) within 60 to 90 days of the entry of the LOI.
The Basic Terms of the LOI
Pursuant to the terms of the LOI, OWL will acquire the OWL Divisions in consideration for:
a 7% gross royalty (theRoyalty”) payable to MG from all income received by OWL from any process, procedure or product utilizing the OWL Divisionals during the term of the Royalty;
the issuance of 2,000,000 common shares (each, aShare”) in the capital of OWL, as to 1,000,000 Shares upon the completion of the Assignment, 500,000 Shares upon receipt by OWL of the first deliverable of a small pilot plant that will produce lithium carbonate, and 500,000 Shares upon completion of a commercial size pilot plant that will produce lithium carbonate from brine and/or slurries. This full-scale pilot plant is the second deliverable that will complete the two-year research and development program;
7% Net Proceeds from the sale of OWL Divisionals and the technology developed by the project; and
the payment by OWL of 50% of the legal costs associated with the completion of the Assignment, capped at OWL contributing
US$22,500 .
In addition to the above, OWL has also agreed to fund certain R&D operations related to the OWL Divisionals, which will be conducted with MG. Accordingly, OWL has agreed to fund MG’s monthly management fees of
Following the Assignment, OWL has also agreed to license back to MG perpetual, non-exclusive, royalty bearing worldwide license to practice the OWL Divisionals and any technology or improvements arising out of MG’s lab work (the “License Back”). In consideration for the License Back, MG shall pay OWL a 7% gross royalty back from all income received by MG from the use, sale or license from the License Back.
MG states, “The objective is to commercialize OWL’s technology that rapidly, economically, and environmentally extract Lithium and to generate Lithium Carbonate from a brine using an advanced carbon dioxide injection process and to reduce presently common consumables in existing production practices including adsorbents, absorbents, membranes and electrodes, and environmental burdens originating from substantial uses of local fresh water, acids, and solid chemicals.”
MG’s Founder
Dr. Jinichiro Nakano, who specialized in Material Science and Engineering, graduated with a PhD from
Jack is a Physical and Chemical Engineer, co-founder of
About
On behalf of the Board of Directors of One World Lithium Inc.
“Douglas Fulcher”
President and Chief Executive Officer
For further information please visitwww.oneworldlithium.comor emailinfo@oneworldlithium.comor call1-604-564-2017 Extension-3.
Forward-Looking Information: This press release may include forward looking information within the meaning of Canadian securities legislation. Forward-looking information is based on certain key expectations and assumptions made by the management of the OWL, including, but not limited to: (I) the entry into of the Definitive Agreement and timing thereof, (II) the ability of the OWL Divisions, following the Assignment and further R&D, to change the lithium extraction industry, and (III) OWL’s and MG’s collective abilities to commercialize the OWL Divisionals technology. Although OWL believes that the expectations and assumptions on which such forward looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because OWL can give no assurance that they will prove to be correct. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from the those anticipated in such statements, important factors that could cause actual results to differ materially from the company’s expectations include: (I) inability of OWL and MG to agree upon the essential terms for the Assignment and, as a result, the Definitive Agreement, (II) the inability of OWL and MG to commercialize the OWL Provisions; and (III) OWL’s inability to execute its business plan and raise any required financing, (IV) risks and market fluctuations common to the mining industry and lithium sector in particular, and (V) advancements in other new separation technologies. The ongoing COVID-19 pandemic, labour shortages, inflationary pressures, rising interest rates, the global financial climate and the conflict in
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined inthe policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
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