Esstra Announces Acquisition of 5% Equity Interest in Lithium Extraction Technology Company
Vancouver, British Columbia--(Newsfile Corp. - September 3, 2020) - Esstra Industries Inc. (TSXV: ESS) ("Esstra" or the "Company") is pleased to announce that it has acquired a 5% equity interest in ExSorbtion Inc., a private Nevada company ("ExSorbtion"), as set forth in a press release dated July 16, 2020.
ExSorbtion has purchased the global patent and patent-applications portfolio of a selective-adsorption technology for extracting lithium from oilfield and geothermal brines and salars. This technology has demonstrated faster reaction time, higher lithium selectivity and uptake, and longer sorbent life compared to competing selective adsorption technologies (the "Technology"). "Selective Adsorption" is a process similar to ion-exchange, wherein a brine containing lithium is passed through a bed of porous particles (sorbent), and the sorbent selectively adsorbs lithium from the brine. The adsorbed lithium is then extracted from the sorbent using regeneration and other post-processing steps.
The Company paid US$263,160 for the 5% equity interest and in conjunction with the investment, the Company received a license to utilize the Technology on one lithium brine resource selected by Esstra (the "License"). To maintain the License, Esstra is required to pay to ExSorbtion, commencing in the third year after ExSorbtion demonstrates a fully functioning commercial pilot plant (the "Initial Royalty Payment Date"), a sliding scale royalty that starts at 5% of annual gross revenue until US$2 million has been paid, decreasing to 2% and continuing thereafter once US$6 million has been paid (the "Royalty"). The License is also subject to minimum Royalty payments, commencing at US$100,000 on the Initial Royalty Payment Date and increasing by US$50,000 each year thereafter until the sixth year. The Company will now commence sourcing of a location to utilize the License.
On behalf of the Board of Directors,
Esstra Industries Inc.
For further information, please contact the Company at:
This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors should change, except as required by law.
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