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Last updated on April 16, 2014 at 7:48 EDT

Canada Lithium Granted up to $6.5 million for Lithium Metal Pilot Plant from Federal Sustainable Development Program

February 15, 2013

TSX: CLQ; U.S. OTC: CLQMF

TORONTO, Feb. 15, 2013 /CNW Telbec/ – Canada Lithium Corp. (TSX: CLQ)
(U.S. OTC: CLQMF) announced today that the Company has been selected to
receive a grant of up to $6.5 million from the Government of Canada
through  Sustainable Development Technology Canada (SDTC).

The grant was awarded to Canada Lithium to construct a pilot plant to
test the viability of refining lithium metal from the Company’s lithium
products, soon to be produced from the new mine and process plant
currently being commissioned near Val d’Or, Québec.

“Our Government is doing its part to encourage innovation and the next
wave of clean technologies to help protect our environment and create
high-quality jobs,” said the Honourable Joe Oliver, Canada’s Minister
of Natural Resources. “Investment in projects such as these
demonstrates our leadership in driving a vibrant clean technology
industry in Canada.”

“It is an honor to be chosen for the SDTC program, which funds projects
aimed at creating jobs in Canada’s dynamic cleantech sector,” said
Canada Lithium President and CEO Peter Secker. “It also fits well with
our strategic goal to broaden our product offering, the core of which
will be lithium carbonate, but with higher-value downstream products
such as lithium hydroxide and lithium metal.”

“As a component of electric-vehicle batteries, lithium is in high demand
worldwide and an important tool for the cleantech sector,” said Dr.
Vicky Sharpe, President and CEO of SDTC. “The technology being
developed in this project has the potential to reduce total EV battery
costs, thereby increasing the rate of EV up-take. This represents an
exciting development for Canada’s cleantech sector and an opportunity
to reach markets overseas.”

Lithium metal is used as the cathode material for primary lithium
batteries, lithium metal polymer batteries and in the newly developed
lithium-air battery designs. In addition, it is increasingly used in
aluminum alloys in aerospace applications and for the production of
butyl lithium products. The current market price for 99.9% lithium
metal is quoted at over $60,000 per tonne by Metal Prices (www.metalprices.com).

The company is proposing to commence construction of a
200-tonne-per-annum pilot plant on the Québec Lithium site towards the
end of Q3, 2013. The objective of the pilot plant is to produce
battery-grade, 99.95% lithium metal for metallurgical acceptance
testing in Québec and Asia. The production of lithium metal consumes
significant quantities of electrical power; therefore, the location of
a new plant in Québec relies upon utilising competitively priced
electrical power from Hydro-Québec. If the pilot plant proves a
success, Canada Lithium could potentially commence construction of a
2,000-tonnne-per-annum lithium metal plant, perhaps as early as Q4,
2014.

Canada Lithium is nearing the end of the commissioning phase of its
$207-million open-pit mine and process plant.  First shipment of
lithium carbonate is anticipated at the end of March, 2013.  The
company has also completed designs for a lithium hydroxide circuit and
sodium sulphate circuit at the plant.

About Canada Lithium Corp.

The Company holds a 100% interest in the Québec Lithium Project near Val
d’Or, the geographical heart of the Québec mining industry. It has
completed construction and is in the commissioning phase of an open-pit
mine and on-site processing plant with estimated capacity to produce
approximately 20,000 tonnes of battery-grade lithium carbonate
annually. Metallurgical tests have produced battery-grade lithium
carbonate samples. A five-year off-take agreement for a minimum of
12,000 tonnes per year was recently signed with Tewoo-ERDC, one of
China’s largest commodities traders. A second off-take for up to 5,000
tonnes per year was recently signed with Marubeni Corp., a major
Japanese commodities trading company. Lithium carbonate is used in
lithium-ion batteries that power consumer electronics (laptops,
tablets, etc.), power-grid storage facilities and electric and hybrid
vehicles.  The Company trades under the symbol CLQ on the TSX and on
the U.S. OTCQX under the symbol CLQMF.

About SDTC

On behalf of the Government of Canada, Sustainable Development
Technology Canada (SDTC) helps commercialize Canadian clean
technologies, readying them for growth and export markets.  With a
portfolio of companies under management valued at more than $2B, SDTC
is demonstrating that cleantech is a driver of jobs, productivity and
economic prosperity. SDTC operates two funds aimed at the development
and demonstration of innovative technological solutions.  The $590
million SD Tech Fund(TM) supports projects that address climate change,
air quality, clean water, and clean soil.  The $500 million NextGen
Biofuels Fund(TM) supports the establishment of first-of-kind large
demonstration-scale facilities for the production of next-generation
renewable fuels.

Cautionary Statement Regarding Forward-Looking Information

This press release contains “forward-looking information” within the
meaning of Canadian securities legislation. Forward-looking information
is based upon the Company’s beliefs, estimates and opinions as at the
date of this press release, which the Company believes are reasonable,
but no assurance can be given that these will prove to be correct.
Furthermore, the Company undertakes no obligation to update or revise
forward-looking information contained herein if these beliefs,
estimates and opinions or other circumstances should change, except as
otherwise required by applicable law.

Forward-looking information relates to future events or to future
conditions, performance or results of operations and reflects current
expectations or beliefs regarding such matters including, but not
limited to, information or statements with respect to: (i) the amount
of mineral resources; (ii) exploration, development and production
activities, including information regarding the potential
mineralization and resources; (iii) the amount of future output over
any period; (iv) net present value and internal rates of return of the
mining operation; (v) assumptions relating to capital costs, operating
costs and other cost metrics; (vi) assumptions relating to gross
revenues, operating cash flow and other revenue metrics; (vii)
assumptions relating to future price and demand for lithium and other
macroeconomic metrics; (viii) exploration and development plans,
including anticipated costs and timing thereof, time frames for
completion, and anticipated time to production; (ix) mine potential and
expected mine life; and * sources of and anticipated financing
requirements.

All information other than matters of historical fact may be
forward-looking information. In some cases, forward-looking information
can be identified by the use of words such as “seek”, “expect”,
“anticipate”, “budget”, “plan”, “project”, “estimate”, “assume”,
“continue”, “forecast”, “intend”, “believe”, “predict”, “potential”,
“target”, “strategy”, “goal”, “may”, “could”, “would”, “might”, or
“will” and similar words or phrases (including negative variations)
suggesting future outcomes or statements regarding an outlook.

Forward-looking information is based upon certain assumptions by the
Company or its consultants and other important factors that, if untrue,
could cause the actual results, performances or achievements of the
Company to be materially different from future results, performances or
achievements expressed or implied by such information. Such information
is based on numerous assumptions regarding present and future business
strategies and the environment in which the Company will operate in the
future, including the price of lithium, anticipated costs and ability
to achieve goals. Certain important factors that could cause actual
results, performances or achievements to differ materially from those
in the forward-looking information include, but are not limited to: (i)
required capital investment and estimated workforce requirements; (ii)
estimates of net present value and internal rates of return; (iii)
future demand and market prices for lithium; (iv) receipt of regulatory
approvals on acceptable terms within commonly experienced time frames;
(v) anticipated timelines for the commencement of production; (vi)
anticipated timelines for community consultations and the impact of
those consultations on the regulatory approval process; and (vii)
future exploration plans and objectives.

By its nature, forward-looking information involves known and unknown
risks, uncertainties and other factors which may cause actual results,
performance or achievements, or industry results, to differ materially
from those expressed or implied by such forward-looking information.
Some of the risks and other factors that could cause actual results to
differ materially from those expressed in the forward-looking
information contained in this press release include, but are not
limited to, risks and uncertainties relating to: (i) the interpretation
of drill results, the geology, grade and continuity of mineral deposits
and conclusions of economic evaluations; (ii) results of feasibility
studies, and the possibility that future exploration, development or
mining results will not be consistent with the Company’s expectations,
(iii) the outcome of litigation in which the Company is or may in the
future become involved; (iv) risks relating to possible variations in
reserves, grade, planned mining dilution and ore loss, or recovery
rates and changes in project parameters as plans continue to be
refined; (v) mining and development risks, including risks related to
accidents, equipment breakdowns, labor disputes (including work
stoppages and strikes) or other unanticipated difficulties with or
interruptions in exploration and development; (vi) risks related to the
inherent uncertainty of production and cost estimates and the potential
for unexpected costs and expenses; (vii) risks related to future
commodity demand and price and foreign exchange rate fluctuations;
(viii) the uncertainty of profitability based upon the cyclical nature
of the industry in which the Company operates; (ix) risks related to
failure to obtain adequate financing on a timely basis and on
acceptable terms or delays in obtaining governmental approvals or in
the completion of development or construction activities; * risks
related to environmental regulation and liability; (xi) political and
regulatory risks associated with mining and exploration; (xii) risks
related to the uncertain global economic environment; and (xiii) other
risks and uncertainties related to the Company’s prospects, properties
and business strategy. Although the Company has attempted to identify
important factors that could cause actual results or events to differ
materially from those described in the forward-looking information,
readers are cautioned that this list is not exhaustive and there may be
other factors that the Company has not identified. Readers are
cautioned not to place undue reliance on forward-looking information
contained in this press release. All forward-looking information
contained in this press release or incorporated by reference herein is
expressly qualified by this cautionary note.

SOURCE Canada Lithium Corp.


Source: PR Newswire