LITHIUM X ENERGY C COM NPV (OTCMKTS:LIXXF) is a penny stock in the lithium space that has grabbed hold of the attention of traders during the stock’s recent breakout move. The main catalyst for the action of late has been the company’s announcement that it has entered into a definitive agreement with Aberdeen International Inc. for the purchase of Aberdeen’s remaining 50% interest in Potasio y Litio de Argentina S.A. which controls 100% of the Sal de los Angeles Project.
According to the release, the Company originally acquired from Aberdeen a 50% interest in the Sal de los Angeles Project, together with an option to acquire an additional 30% interest (for a total interest of 80%) upon completion of a feasibility study and issuance to Aberdeen of $5 million in common shares of LIXXF.
LITHIUM X ENERGY C COM NPV (OTCMKTS:LIXXF) trumpets itself as a company that operates as a lithium exploration and development company in Argentina and the United States.
As noted, LIXXF owns a 50% interest in the Sal de los Angeles project comprising 8,156 hectares located in Salta Province, Argentina. It also owns a 100% interest in the Clayton Valley South project consisting of 477 federal placer mining claims covering approximately 9,540 acres located to the southwest of Tonopah, Nevada; and holds an option to acquire a 100% interest in the NSP Lithium claims covering approximately 5,480 acres located in northern Clayton Valley, Nevada.
Lithium X holds option agreements on 15,020 acres (6,078 hectares) in Nevada’s Clayton Valley and land positions both north and south of Albemarle’s Silver Peak lithium brine mine, North America’s only lithium producer, making the Company the largest claim holder in the Clayton Valley. Clayton Valley North covers approximately 5,480 acres (2,217 hectares) in northern Clayton Valley, Nevada. The claims are contiguous to private lands and placer claims belonging to the lithium production facility of Albemarle Corporation. Historic drill information and a geophysical survey show the property covers basin-fill sediments which are similar to the sediments currently producing lithium brines. Two Albemarle production sized wells lie along the boundary. The Company has also acquired the Clayton Valley South Expansion (“Clayton Valley South”), totaling approximately 9,540 acres (3,861 hectares). The property is strategically located contiguous to the Silver Peak lithium mine operated by Albemarle Corp. on the northern boundary, the Clayton Valley South project operated by Pure Energy Minerals Ltd to the east and the Neptune property owned by Nevada Sunrise Gold Corporation to the west.
The company was formerly known as Royce Resources Corp. and changed its name to Lithium X Energy Corp. in November 2015. Lithium X Energy Corp. was founded in 1997 and is headquartered in Vancouver, Canada.
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As most OTC traders know, the lithium space was burning red hot at the start of 2017, and through much of 2016. But many stocks in the space started to suffer this Spring. LIXXF has been one of the sturdier names in the space, holding up well during the corrective phase. That’s why it’s interesting to see it move above recent range resistance over short timeframe charts in the last few days. A move above the $1.75 level would be extra important in definitively marking a breakout. The Aberdeen transaction could be a key ingredient in that type of move.
Brian Paes-Braga , CEO and a Director of Lithium X, commented, “This transaction marks another milestone for Lithium X, as the Company will now control 100% of PLASA, the Argentine subsidiary that fully controls the Sal de Los Angeles Project. This transaction provides Lithium X with the ultimate flexibility in developing the project and more easily delivers shareholder value over the long term.”
The chart shows 9% tacked on to share pricing for the listing in the past month. Market participants may want to pay attention to this stock. LIXXF has evidenced sudden upward volatility on many prior occasions. In addition, the listing has benefitted from a jump in recent trading volume to the tune of 12% over the long run average.
Currently trading at a market capitalization of $115.5M, LIXXF has a significant war chest ($19M) of cash on the books, which must be weighed relative to virtually no total current liabilities. The company is pre-revenue at this point. This may be a very interesting story and we will look forward to updating it again soon. For continuing coverage on shares of $LIXXF stock, as well as our other breakout stock picks, sign up for our free newsletter today and get our next hot stock pick!