VANCOUVER, British Columbia, Sept. 16, 2015 (GLOBE NEWSWIRE) -- Pure Energy Minerals Limited (TSX-V:PE) (FRANKFURT:A111EG) (OTCQB:HMGLF) (the "Company" or "Pure Energy") is pleased to announce that the Company has entered into an agreement with Tesla Motors Inc. ("Tesla") dated September 15th, 2015 (the "Agreement") for the potential supply of lithium hydroxide (the "Product") that Pure Energy plans to produce from the Company's Clayton Valley, Nevada Lithium Brine Project (the "Project"). Pure Energy will conduct a mining study in the form of a Preliminary Economic Assessment, Pre-Feasibility Study or Feasibility Study to confirm the technical feasibility and economic viability of the Project.
Provided that Pure Energy meets certain terms and conditions related to project execution, product quality and timing of delivery, the Agreement establishes a commitment for an annual purchase volume of product over a period of 5 years by Tesla and/or its authorized purchasers. The Agreement sets a predetermined price that is below current market rates and is aligned with Tesla's goal to continuously reduce the cost of its lithium ion batteries. It is proposed that the Product will be used in the battery cell manufacturing process of Tesla's rapidly growing electric vehicle and stationary storage business units, which are located approximately 3.5 hrs. drive from the Project. Any deliveries from Pure Energy will cover a portion of Tesla's needs with the remainder to come from other sources.
Robert Mintak, Pure Energy CEO, commented, "This agreement with Tesla is a significant milestone that validates Pure Energy's lithium brine project and business development model, and is an important step in the development of the Project. Pure Energy is aligned with both Tesla's and the State of Nevada's development objectives, and we hope to positively contribute to Nevada's booming clean energy based economy."
Certain information relating to future pricing formula and forecasted deliveries has been omitted on the basis of confidentiality and on the basis that the Agreement is subject to various conditions in relation to project execution, product quality, pricing and timing of delivery.
The Company's primary strategy is to advance the Project through to production.
For greater details about the Project, please refer to the Company's Technical Report dated July 17, 2015, available under the Company's profile at www.sedar.com.
About Pure Energy.
Pure Energy is an integrated lithium mining and processing developer with a focus on green 'cradle to cradle' lifecycle solutions for lithium supply in North America. Pure Energy is currently advancing the Clayton Valley South Lithium Brine Project, located in the same basin as, and contiguous to, the only producing lithium operation in the United States, Albemarle's Silver Peak lithium brine mine. The Company has focused its business plan on producing high value lithium compounds such as Lithium Carbonate (Li2CO3) and Lithium Hydroxide (LiOH.H2O), which are primarily used in the emerging lithium ion battery market.
About the Clayton Valley South Lithium Brine Project.
The Company is in the process of developing the mineral properties comprising the Project. We note, further to Pure Energy's announcement of July 28, 2015 of an inferred resource estimate on the Project of 816,000 metric tonnes of lithium carbonate equivalent, that Pure Energy has not yet established a probable or proven mineral reserve in respect of the Project.
The next phase of that process will be the completion of a preliminary economic assessment on the Project, which the Company hopes to complete in Q2 2016.
The ability of the Company to satisfy the terms of the Agreement is dependent upon the discovery of economically recoverable reserves, the ability of the Company to obtain necessary financing to complete the development, obtaining all necessary approvals and constructing a mine and processing facilities at the Project and the achievement of commercial production of lithium hydroxide. There can be no assurance that the conditions to supply Product under the Agreement will be met. Lastly, investors are cautioned that without a Pre-Feasibility or Feasibility study prepared in accordance with NI 43-101 there can be no assurance that the Agreement will result in an actual producing lithium mine.
Qualified Person and Quality Control/Quality Assurance
Gerhard Jacob, P.Geo, EFG (European Geologist), is a qualified person as defined by NI 43-101, and has supervised the preparation of the scientific and technical information that forms the basis for this news release. Mr. Jacob, P.Geo is not independent of the Company as he is a director.
On behalf of the Board of Directors
"Robert Mintak"
Chief Executive Officer
"Reader Advisory
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