MGX expands petro-lithium land holdings in Alberta, Utah

VANCOUVER (miningweekly.com) – Lithium-focused junior MGX Minerals has significantly expanded its petro-lithium land-holdings in North America by claim staking, expanding its portfolio in Alberta and Utah.

The Vancouver-based miner, which operates lithium, magnesium and silicon projects throughout British Columbia and Alberta, as well as petro-lithium exploration projects in Utah, acquired more metallic and industrial mineral permits covering more than 133 000 ha in Alberta. The new permits are located within the Leduc (9 216 ha), Swan Hills (110 592 ha) and Nipisi (13 824 ha) formations.

In total, MGX now holds permits over 600 000 ha throughout Alberta. The company also has exploration-level agreements in place with major oil and gas companies throughout the province to conduct well sampling.

At its Lisbon Valley petro-lithium project, in Utah, MGX has also acquired a further 301 mineral claims covering 251 ha within the Paradox basin in the southeast of the state. The new claims further increase the company's Lisbon Valley land package, to 9 623 ha. MGX also recently announced an earn-in agreement to explore 111 mineral claims in the Cane Creek area of the Paradox basin.

The Lisbon Valley oil- and gasfield is located about 64 km southeast of Moab, Utah, in the salt anticline belt on the southwest edge of the Paradox basin, in San Juan county. Historic lithium brine content has been reported as high as 730 parts per million lithium. The company noted that the region is home to the former Rio Algom uranium mill facility, an active copper mine operated by Lisbon Valley Mining, and a natural gas processing plant.

As consideration for staking the Utah claims, the company paid a fee of $19 565 to Plateau Ventures and a fee of $9 375 to the Alberta government to acquire the permits.

MGX has also entered an engagement letter with Mackie Research Capital to act as lead agent and sole bookrunner, on a best-efforts basis, in connection with a proposed private placement for up to C$5-million through issuing special warrants.