May 13 2013
Western Lithium USA Corporation is pleased to announce that it has been awarded a Patent from the United States Government (US 8,431,005) for its lithium extraction process that was filed in June 2011.
The invention relates to the separation of lithium and potassium compounds from lithium-containing materials, primarily ores such as hectorite and other lithium-rich clays. The process is summarized in Western Lithium's NI 43-101 compliant Pre-Feasibility Study that was filed on SEDAR in January 2012. The Pre-feasibility Study demonstrated a pre-tax net present value of US$552 million with an internal rate of return of 24% at an 8% discount rate. The Company believes that the patent will help to protect the intellectual property that has been developed by the Company through comprehensive engineering and pilot testing over the past several years.
A lithium demonstration plant is the next step to determine operating parameters that are commercially scalable to support the detailed design of a lithium production facility. The Company recently engaged an engineering design firm based in Denver, USA to assist in the design of the demonstration plant. The Company is also seeking technical partners and equipment manufacturers to participate in building and operating the demonstration plant. The Company has received US$11 million from first tranche of the Royalty Financing (see the Company's news release dated February 6, 2013), of which US$1 million is allocated to advance the lithium demonstration plant design. A further US$9 million second tranche of the Royalty Financing will be funded to build the demonstration plant, once certain regulatory milestones are achieved in Nevada.
Update on Hectatone™ Organoclay for Oilfield Applications
In the near term, the Company has focused its attention on developing a product line of Hectatone™ organoclay drilling products to sell into the oil and gas drilling markets. Hectatone™ is a thermally stable drilling mud additive that can be used under high pressure and high temperature (HPHT) environments. HPHT environments are encountered for certain shale and deep offshore oil and gas deposits.
During the next week, the Company expects to place its first order for major lead-time equipment items to construct the planned 10,000 ton per year organoclay facility in Nevada. The construction of the organoclay plant is expected to be complete and ready for commissioning in early 2014. The Company recently completed pilot scale Hectatone™ production at facilities in North Carolina and St Louis during the month of April to test and refine product performance in diesel and mineral oil.
Qualified Person
Disclosure of a scientific or technical nature in this news release has been reviewed and approved by Dennis Bryan, who is considered a Qualified Person under the terms of National Instrument 43-101.
Source: http://www.westernlithium.com/