Introduction
In April 2016, Enertopia (TOP) strategically decided to expand into Lithium in the Nevada region, as it hosts the largest known lithium resources in America today. Nevada also exhibits favorable geological parameters for the discovery of Lithium brine deposits. The Tesla Gigafactory and Clayton Valley Lithium processing centers are also in close proximity to Enertopia Lithium exploration targets.
During Enertopia’s history, directly and indirectly through associates, it has obtained and utilized valuable knowledge in sometimes diverse sectors. These have included the latest thinking in metallurgy from the mining and resource sectors; the utilization of advanced technologies in renewable energy and water filtration; and the delivery of nutrients and also minerals in the pursuit of maximizing botanical growth. Separately, each of these had its own applications within specific fields. Together, the Company has realized there is great potential for a unique understanding and perspective that can be of value to all. In order to maximize the potential of the unifying concepts of the above technologies and more, Enertopia has decided to attempt to leverage its unique knowledge base and assemble disparate knowledge bases with specific applications to the Lithium market.
Nevada Projects
The Attributes for all projects include:
• Low Gravity & Low Basin
• Large Closed Basin
• Lithium-Bearing Source Rocks
• Geothermal Clusters
• Multiple Tertiary Calderas
The three properties are: Edwards Creek, Smith Creek, Big Smoky
Recent Developments
April 26, 2016: Enertopia Announces New Lithium Business Division and Closed Letter of Intent
Enertopia entered into a letter of intent (“LOI”) dated April 21, 2016 with S P W Inc. (the “Vendor”) respecting the proposed option to purchase a 100% interest in approximately 2,560 acres of placer mining claims in Nevada, USA. These placer mining claims are subject to a 1.5% NSR from commercial production with the Company able to buy back the NSR at the rate of $500,000 per 0.5% NSR.
Upon execution of the LOI, the Company provided a USD$7,000 deposit to the Vendor. In order to earn its 100% interest, the Company is required to make aggregate cash payments of USD$60,500 over one year and issue an aggregate of 3,500,000 shares of its common stock on signing of the Definitive agreement and up to an additional 3,000,000 success shares based on the successful drilling of a Lithium enriched brine aquifer with a minimum Lithium average content of 300 ppm over 100 feet of liquid brine reservoir.
May 12, 2016: Enertopia Announces Closed Definitive Agreement in Lithium exploration
Enertopia announced that it closed the Definitive Agreement on May 12, 2016 with the Vendor respecting the option to purchase a 100% interest in approximately 2,560 acres of placer mining claims in Churchill, Lander and Nye Counties Nevada, USA. These placer mining claims are subject to a 1.5% NSR from commercial production with the Company able to buy back the NSR at the rate of $500,000 per 0.5% NSR.
Upon execution of the Definitive Agreement, the Company paid USD$12,000 to the Vendor and issued 3,500,000 shares as directed on closing. In order to earn its 100% interest, the Company is required to make remaining cash payments of USD$33,500 over one year and issue up to an additional 3,000,000 success shares based on the successful drilling of a Lithium enriched brine aquifer with a minimum Lithium average content of 300 ppm over 100 feet of liquid brine reservoir. “The Company looks forward to the exploration and drilling phase on the Central Nevada Lithium Brine Project and providing project updates on a continuous basis as exploration unfolds,” said Robert McAllister, President.
June 8, 2016: Enertopia Closes Financing and Provides Lithium Project Update
On May 20, 2016 Enertopia raised $96,200, and finalized the financing with an additional $45,250. Shares were issued at CAD$0.015 with a full warrant at US$0.05 during the first 18 months and US$0.10 after 18 months until they expire on June 8, 2019.
Enertopia has been soliciting drilling quotes for its three projects due east from Reno, Nevada. The Company will provide a drilling update once permits, drilling contractor has been selected and funds properly allocated for such drilling program or programs. Concurrently with this process the Company is also looking at a more detailed surface program in the Big Smoky, Edwards and Smith valley projects.
“We are very encouraged by the increasing pace of advanced exploration in the Big Smoky Valley by 3rd parties which we believe validates our project selections. Mineral exploration is high risk, but high reward. However Lithium is one of the few metals markets that’s in need of growing supply as Lithium becomes a larger component of our advancing technological society. Year over year and decade over decade the percentage of demand growth for Lithium is expected to lead all metals markets going forward.” Stated President Robert McAllister
June 16, 2016: Enertopia Announces Surface Exploration Program
Enertopia engaged McKay Mineral Exploration, LLC to conduct the first auger sampling program on the Company’s three Nevada Lithium projects. The auger program has been designed to test for Lithium and associated minerals at near surface depths of up to 9 feet depending on hosted sediment conditions. Sampling, bagging and shipments of all samples will be taken and completed as per best industry practice and standards. This first sampling program, in conjunction with compilation of existing data, will help optimize the next phase of exploration.
June 28, 2016: Enertopia Revolutionizing Lithium Industry with Technology
Enertopia engaged with a leading North American brine water recovery company from the United States taking part in revolutionizing Lithium processing technology that could change the current footprint in this industry. Enertopia has contracted with a leading North American company in the field of mobile brine recovery to evaluate the feasibility of recovery of lithium from brine with mobile recovery technology. The first phase of our analysis has just been successfully completed.
The goals of this first phase analysis were 1) to find if the Lithium could be processed from various brine sources and converted into high purity 99.5% Li2CO3 and 2) what the probable cost per tonne would be based on various brine concentrations.
The purpose of these samples was to determine how the proposed technology and recovery would be impacted by differing chemical compositions and values of Lithium in the brines. The four samples had Lithium values of 40, 97, 190 and 423 parts per million (ppm). The focus was to find out what Lithium concentration in the brine would be needed for economic recovery. The first phase analysis showed that lithium in the brine at a concentration level of 100 (ppm) could be feasibly recovered into 99.5% LiPO4 with a recovery rate of 95% of the Lithium contained in the brine. Cost for that recovery was estimated at $3,500 per ton of LiPO4. The cost to recover lithium as Li2CO3 at a grade of 99.5% was estimated to be $5,500 per ton based on a Lithium concentration of 100 ppm in the brine. Using higher Lithium concentrations in brine (>400 ppm) the cash cost to process Lithium battery grade Li2CO3 potentially drops below $1,800 per tonne based on the results from this first phase analysis. No credits for potassium or boron recovery were used in making cost estimates.
The second phase analysis will consist of bench tests on 5 gallon brine samples collected from field sources or synthetic samples if field samples are unavailable These tests will be used to verify the first phase results and to look at ways to further drive down the cost of Lithium production.
Upon a successful second phase testing, the third phase would involve a construction and testing of a pilot plant with a run rate of 50 gallons per minute (gpm). If proven economically viable, the use of the proposed mobile technology could offer a fast track to production that could be executed in months rather than years typical with most mining projects - and at a far smaller capex.
“Enertopia is excited with the success of the first phase analysis and how these numbers compare with the current processing costs from current and near term Lithium producers as stated in the Macquarie Lithium Research Report dated May 31, 2016. Enertopia looks forward to the second phase analysis and our ongoing exploration work at our three Nevada Lithium brine projects and continuing due diligence in the mineral sector. Modern technology is revolutionizing ways and providing a better way to mine and protect our environment. We are enthusiastic in becoming leaders in this evolution,” Stated President and CEO Robert McAllister
Capital Markets Information
Shares Outstanding: 84,778,460
Options: 3,210,000
Warrants: 24,912,139
Fully Diluted: 112,900.599
Share Price (June 30, 2016): $0.04
Market Cap: $2.97M
Management & Directors
Robert McAllister
President, CEO, Secretary and Director
Mr. McAllister has served as our president since November 2007 and as a director since April 2008. Mr. McAllister was responsible for Investor and Corporate communications for mining and oil & gas companies in the past. From Aug 2008 to Sept 2011 Mr. McAllister was involved in the restructuring of a public international Oil & Gas company and took it from zero revenue and in debt to cash flow positive before leaving in the fall of 2011. Mr. McAllister has also provided and written business and investment articles from 1996 to 2006 in various North American publications focused on oil & gas and mining companies.
Bal Bhullar CPA, CGA, CRM
CFO, Director
Ms. Bal Bhullar has over 23 years of diversified entrepreneurial, financial and risk management experience in both private and public companies, in the industries of technology, film, mining, marine, oil & gas, energy, transport, and health and wellness industries. Among some of the areas of experience, Ms. Bhullar brings expertise in entrepreneurial, financial & strategic planning, operational & risk management, regulatory compliance reporting, business expansion, start-up operations, financial modeling, program development, corporate financing, and corporate governance/internal controls. Previously, Ms. Bhullar has held various positions as President of BC Risk Management Association of BC, and has served and currently serves as Director and CFO of private and public companies.
Kevin M. Brown
Director
Mr. Brown brings over 15 years of diversified financial and business management experience in private companies, covering the high-tech, mining, and the health and wellness industries.
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