Western Lithium USA (TSX:WLC, StockForum), a Reno Nevada-based firm engaged in the acquisition, exploration and development of lithium resource properties in Nevada, announced today that the company received a milestone payment of US$1.5 million to be put toward the building of the company's planned lithium demonstration plant.
The monies came as a result of the royalty purchase agreement with Orion Mine Finance, the company's largest shareholder and will assist in making the demonstration plant operational by Q4 2014.
According to the news release, “Western Lithium intends to use the plant to collect design data for a definitive feasibility study and to demonstrate the viability of producing low cost lithium carbonate from its Kings Valley lithium-rich hectorite clay deposit in Nevada (the "Project").”
It then added, “The Company has received a USA patent for its proprietary process for separating lithium and potassium byproduct compounds from lithium-rich clays (see news release dated May 9, 2013).”
And continued, “Based on its NI 43-101 Prefeasibility Study, the Project is forecast to have a comparably low first-quartile cost structure against new and incumbent lithium producers, and to generate a net present value of US$552 million at a discount rate of 8% (see SEDAR filing dated January 27, 2012).”
Jay Chmelauskas, Western Lithium CEO, commented, “In 2014, we see potential for renewed interest towards the expansion of the lithium sector, due to the rising adoption by mainstream consumers of hybrid, plug-in and electric vehicles, and energy storage devices that use lithium ion batteries. Lithium ion technology is becoming ubiquitous in products ranging from lithium battery powered bikes to garden tools.”
He went on, “We are aggressively planning to have the Lithium Demonstration Plant operational in Germany in the fourth quarter of 2014, at a fully permitted facility complete with utilities and laboratory support.”
Then concluded, “We will invite potential strategic partners, investors and stakeholders to visit the demonstration plant in Germany, where we expect to be able to demonstrate the advantages and cost competitiveness of producing lithium carbonate from our unique lithium clay.”
Western Lithium USA was in the news recently when the company announced its Hecatone(TM) Organoclay plant was scheduled for commissioning summer, 2014.
Shares climbed 11.11% on the news to $0.35 per share.
Currently there are 102.1m outstanding shares with a market cap of $35.8 million.