(TheNewswire)
VANCOUVER, BC – TheNewswire - September 28, 2023 - One World Lithium Inc. (CSE:OWLI)(OTC:OWRDF) (the “ Company ” or “ OWL ”) is pleased toannounce subsequent to its press release of February 21, 2023, it hassigned an Assignment and License Agreement (the “ Definitive Agreement ”) with MatterGreen LLC (“ MG ”), an arm’slength Oregon limited liability company, pursuant to which MG shallfile and assign to OWL (the “ Assignment ”) two separate patentapplications for Lithium Carbonation that is a lithium extractiontechnology (together, the “ OWL Patent Applications ”). Following theAssignment, OWL will be the sole and exclusive owner of the OWL PatentApplications and, under the terms of the Definitive Agreement, MG willbe continuing to develop the technology on behalf of OWL tocommercialize OWL’s ability to extract Lithium in a commercial andcost-effective producing plant.
The OWL Patent Applications are for natural brine andfor slurries made from pegmatite, clay, volcanic rock andsediment . Additionalpatents may be filed in the future as a result of the research &development (“ R&D ”) work to be carried out withMG.
More specifically, MG will conduct and manage thedevelopment, testing and, R&D laboratory work associated with thecommercialization of the technology and the associated patentapplications. This is a major milestone for OWL to be part of theseR&D operations related to the OWL Patent Applications, which willbe conducted with MG. Accordingly, OWL has agreed to fund a portion ofMG’s development to assist in the furtherance of the R&Dlaboratory work. OWL has also agreed to file for an extension of itsNon-Exclusive Research and Evaluation with an Option (the“ DOE Option ”) from the United States Department of Energy NationalEnergy Technology Laboratory (“ DOE ”) which OWL hasfiled. For more information on the DOE Option,please see OWL’s news releases dated March 23, 2022, April 28, 2022,and May 17, 2022, filed under its profile on SEDAR .
MG states, “The objective is to commercialize the OWLPatent Application technology which seeks to rapidly, economically,and environmentally extract Lithium and to generate Lithium Carbonatedirectly from a brine while reducing presently common consumables inexisting production practices including adsorbents, absorbents,membranes and electrodes, and environmental burdens originating fromsubstantial uses of local fresh water, acids, and solidchemicals.”
BASIC TERMS OF THE DEFINITIVEAGREEMENT
Pursuant to the terms of the Definitive Agreement, OWLwill acquire the OWL Patent Applications in consideration for:
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a 5% gross royalty (the Royalty ”) payableto MG during the pendency of the OWL Patent Applications and for alltimes before they are issued from all income received by OWL for theremoval of any substance, that is, removal of lithium and/or anybyproducts utilizing the OWL Patent Applications during the term ofthe patents issued in connection with the OWL Patent Applications,which Royalty shall increase to 7% following the issuance of at leastone of the patents under the OWL Patent Applications;
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the issuance of up to 2,000,000 common shares (each, a Share ”) in the capital of OWL at a deemed price per common shareequal to the greater of (a) the price per Share on the last trading day before the issuances described below, and(b) the lowest price per Share permitted by the policies of theCanadian Securities Exchange ( CSE ”), as follows: 1,000,000 Shares as ofthe date of the Assignment of the OWL Patent Applications; 500,000Shares upon receipt by OWL of the first deliverable of a small scaledemo unit that will produce lithium carbonate; and 500,000 Shares uponcompletion of a pilot site demo unit that will produce lithiumcarbonate from brine and/or slurries;
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5% of the net proceeds from the sale of OWL PatentApplications and the technology developed by the project during thependency of the OWL Patent Applications and for all times before theyare issued, which amount shall increase to 7% following the issuanceof at least one of the patents under the OWL Patent Applications;and
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the payment by OWL of 50% of the legal costs of MGassociated with the completion of the Assignment, capped atUS$22,500.
Following the Assignment, OWL has also agreed tolicense back to MG perpetual, non-exclusive, royalty bearing worldwidelicense to use the OWL Patent Applications and any technology orimprovements from MG’s lab work (the “ License Back ”). Inconsideration for the License Back, MG shall pay OWL a 5% grossroyalty back from all income received by MG from the use, sale orlicense from the License Back during the pendency of the OWL PatentApplications and for all times before they are issued, which amountshall increase to 7% following the issuance of at least one of thepatents under the OWL Patent Applications. The License Back may not beused in connection with any activities directly related to theextraction of lithium and it related elements from natural brines andfrom slurries made from pegmatite, clay, volcanic rock andsediment.
Closing of the Assignment remains subject to a numberof conditions, including, among others, receipt of all requisiteregulatory, including the CSE, shareholder and third party consents ifrequired, waiver and approvals for the Assignment, as applicable, andother conditions customary for transaction of this nature. There canbe no assurance that the Assignment will be completed as proposed orat all.
MatterGreen LLC’s Founder
Dr. Jinichiro Nakano , whospecialized in Material Science and Engineering, graduated with a PhDfrom McMaster University. Prior to founding MG, Jinichiro was aPrincipal Scientist and Technical Fellow with the DOE National EnergyTechnology Laboratory in Oregon where he developed novel energy andmaterial technologies that resulted in 8 patents and 12 internationalrecognitions.
About One World Lithium Inc.
One World Lithium Inc. remains focused on properties ofmerit that may contain lithium in a brine. The Company is also focusedon commercial application of its Direct Lithium Extraction Technology.OWL intends to license or joint venture its technology to current andfuture lithium carbonate producers and consumers. For moreinformation, visit: https://oneworldlithium.com .
On b e h alf o f t h e B o a rd o f D i r e c t o r s of O n e Wo r l d Li th i u m In c .
“ Do u g l as F u l cher”
P r esi d e n t a n d C h i ef Execu t ive O ff i c er
For further information please visit www.oneworldlithium.com or email info@oneworldlithium.com or call 1-604-564-2017 Extension-3.
Forward-Looking Information: Thispress release may include forward looking information within themeaning of Canadian securities legislation. Forward-lookinginformation is based on certain key expectations and assumptions madeby the management of the OWL, including, but not limited to: (i) theclosing of the Assignment and, in connection therewith, the receipt ofany necessary third party approvals including, but not limited to,that of the CSE, the United States Patent and Trademark Office(“ USPTO ”) or the DOE, asapplicable; and (ii) OWL’s and MG’s collective abilities tocommercialize the OWL Patent Applications technology. Although OWLbelieves that the expectations and assumptions on which such forwardlooking information is based are reasonable, undue reliance should notbe placed on the forward-looking information because OWL can give noassurance that they will prove to be correct. There can be noassurance that such statements will prove to be accurate and actualresults and future events could differ materially from the thoseanticipated in such statements, important factors that could causeactual results to differ materially from the company’s expectationsinclude: (i) the inability of OWL and MG to close the Assignment; (ii)the inability of OWL and MG to receive CSE or USPTO approval for theAssignment; (iii) the inability of OWL and MG to commercialize the OWLPatent Applications; (iv) OWL’s inability to execute its businessplan and raise any required financing, (iv) risks and marketfluctuations common to the mining industry and lithium sector inparticular, and (v) advancements in other new direct lithiumextraction technologies. Ongoing labour shortages, inflationarypressures, rising interest rates, the global financial climate and theconflict in Ukraine and surrounding regions are some additionalfactors that are affecting current economic conditions and increasingeconomic uncertainty, which may impact the Company’s operatingperformance, financial position, and future prospects. Collectively,the potential impacts of this economic environment pose risks that arecurrently indescribable and immeasurable. No assurance can be giventhat any of the events anticipated by the forward-looking statementswill occur or, if they do occur, what benefits the Company will obtainfrom them. The Company does not undertake any obligation to updatesuch forward?looking information whether because of new information,future events or otherwise, except as expressly required by applicablelaw.
Ne it he r th e CSE no r i t s M a r k e t Re gu la to r ( a s tha t t e r m is de f in e d in th e p o li c ies o f th e CSE) acc e p ts r e s pon s ibility f o r th e adequac y o r accu r ac y o f th is rel ea s e . The CSE has not, in anyway, passed upon the merits of the Assignment and associatedtransactions and has not, in any way, approved or disapproved of thecontents of this news release.
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