On August 8, 2016, Dajin Resources announced that Dajin's wholly owned Argentinian subsidiary, Dajin Resources S. A., has signed a binding Memorandum of Understanding ("MOU") with Lithium S Holdings Corporation ("Lithium S") whereby Lithium S has been granted an option to earn a 51% interest in Dajin's lithium properties in Argentina (the "Project).
On October 27, 2016, Dajin reported that it has completed a Share Purchase agreement with Lithium S whereby Lithium S will earn a 51% interest in Dajin Resources S.A. by making a payment of $1.0M in cash (which has been paid) and expending a total of $2.0M on mineral concessions held by Dajin Resources S.A.
Lithium S has also completed a $500,000 non-brokered private placement financing of units (the "Units") with Dajin at a price of $0.18 per Unit. Each Unit is comprised of one common share of Dajin and one share purchase warrant of Dajin exercisable into one common share at $0.25 expiring two years from the date of issuance. These securities have a 4 month hold period expiring February 26, 2017.
Lithium S is a wholly owned subsidiary of LSC Lithium Inc. ("LSC"). LSC is a minerals exploration company working with the Enirgi Group Corporation ("Enirgi Group"), a Canadian company based in Toronto. Together, they are focused on the development of Lithium brines in Argentina. LSC was co-founded by Stephen Dattels and Michael Beck, who are well known mining financiers having developed many successful mining projects internationally.
On July 7, 2016, Enirgi Group announced positive results of the Definitive Feasibility Study (DFS) for the Salar del Rincón Lithium project ("Rincon Project"), located in Salta province, Argentina. Enirgi Group owns 100% of the Rincón Project through its wholly owned subsidiary ADY Resources. The project's lithium carbonate plant will be designed to process 50,000 tonnes of battery grade lithium carbonate per year directly from raw, unconcentrated brine using Enirgi Group's proprietary lithium extraction technology. This technology is developed in-house by Enirgi Group's Innovation Division in cooperation with the Australian Nuclear Science and Technology Organisation (ANSTO).
On February 22, 2017, it was announced that Oakham Capital Corp. has changed its name to LSC Lithium Corp. (LSC) and closed its previously announced qualifying trasaction, consisting of the acquisition of all of the issued and outstanding common shares in the capital of LSC Lithium Inc. by way of a three-cornered amalgamation pursuant to the provisions of the Business Corporations Act (British Columbia). On February 28, 2017 LSC started trading publicly on the TSX Venture Exchange under the trading symbol "LSC-V".
On June 2, 2017 Dajin Chief Operating Officer and Director Catherine Hickson, Director Mark Coolbaugh and Technical Board member, Roberto Page were welcomed at Enirgi Group Corporation’s (“Enirgi Group”) newly commissioned Salar del Rincón Lithium carbonate processing plant (the “DXP Plant”) in Salta Province, Argentina. The visit was an opportunity for the group to view the DXP Plant in operation and see the changes to the facility since their last visit in August of 2016. The DXP Plant utilizes Enirgi Group’s proprietary Direct Xtraction Technology (the “DXP Technology”) process to produce lithium carbonate directly from raw, unconcentrated brine in less than 24 hours without the use of a network of solar evaporation ponds. The DXP Technology was developed in-house by Enirgi in cooperation with Enirgi Group’s technology partners, the Australian Nuclear Science and Technology Organization (“ANSTO”). An earlier visit in August 2016 was when Dajin and LSC Lithium Corporation (“LSC”) were entering into a Memorandum of Understanding on a transaction that eventually led to the signing of an earn-in agreement between the two companies. As per the agreement, LSC paid $1,000,000 to Dajin with a commitment to expend another $2,000,000 on the Dajin holdings in Salinas Grandes, Guayatayoc and elsewhere in Jujuy Province in order to obtain a 51% interest in Dajin Resources S.A.Figure 1: Salar del Rincón is a large internally drained basin near the border between Argentina and Chile. The Enirgi Group facility, viewed here looking south across the salar, has been in operation for several years, but just recently completed the building of the DXP Technology Lithium carbonate processing plant. Figure 2: Roadway leading to a well feeding the plant raw brine. The well is approximately 1 km away from the DXP Technology processing plant.
LSC has an agreement with Enirgi Group to process LSC brines from the various salars in their portfolio using Enirgi Group’s DXP Technology. In addition, Enirgi Group holds approximately 18% of LSC and Wayne Richardson is CEO for both companies. Enirgi Group is also the operating company for LSC and the LSC-Dajin agreement. It was for these reasons that the group travelled to Salar del Rincón to view the DXP Plant operations. Dajin management was very pleased with what they observed. Enirgi Group had announced last year that they expected to have the DXP Plant commissioned and operational by Q2 of 2017 – and they have achieved that goal. Dajin, in its deliberations over to who to partner with in Argentina, took into consideration a company with the ability to execute projects within the context of the sometimes challenging environment of Argentina – Enirgi Group has proven they can.Figure 3: Tanks holding raw brine being pumped from the field prior to being feedstock for the chemical operation.
Figure 4: Mark Coolbaugh (left) and Roberto Page (right) viewing apparatus for processing brines.
The DXP Plant is an impressive complex in a salar with good road access from both the east (Salta) and to the west into Chile. The DXP Plant process was developed and validated by Enirgi Group’s Innovation Division based in Sydney, Australia and led by process engineer Cameron Stanton. Cameron’s group formulated the process, then fabricated the components. The plant was run in Australia to show proof of concept before shipping to Argentina. The plant began producing Lithium carbonate in late May, and is working towards third-party concentration and purity verification. Enirgi Group continues to work with ANSTO to confirm the production process, as well as the purity and concentration of the Lithium carbonate being produced.Figure 5: View down a portion of the long dimension of the building housing the main DXP Technology processing plant apparatus.
Figure 6: From left to right: Alejandro Moro, Enirgi Group General Manager, Cameron Stanton, Process Engineer and Enirgi Innovation Division Director, Dajin Resources COO & Director Catherine Hickson and Roberto Page, Dajin Resources Technical Advisor.
The plant uses brines pumped from Salar del Rincón at a distance of about 1 km from the plant and then processes the raw brine through a series of steps to produce Lithium carbonate in under 24 hours. The Lithium carbonate comes out of the dryer facility as a white, crystalline powder. Enirgi Group is calling the plant a “demonstration plant”, but it has substantial size and capacity soon to be verified by ANSTO.Figure 7: Process Engineer and Enirgi Group Innovation Division Director, Cameron Stanton standing beside the conveyor belt taking the just processed and crystallized Lithium carbonate to the bagging apparatus.
Figure 8: The Enirgi Group DXP Technology process takes less than 24 hours to process the raw brine into white crystalline Lithium carbonate ready for shipping.