Definitive Feasibility Study Confirms Positive Outlook for Maricunga Stage One Lithium Brine Project

VANCOUVER, British Columbia, Jan. 20, 2022 (GLOBE NEWSWIRE) -- Bearing Lithium Corp. (“Bearing” or the “Company”) (TSX Venture:BRZ) (OTCQB:BLILF) the Company is pleased to release the results of its updated Definitive Feasibility Study for the Stage One Maricunga Lithium Brine project. The Maricunga project is managed by Minera Salar Blanco (MSB), which is owned by Lithium Power InternationaI Limited (“LPI”) (51.55%), Borda Group in Chile (31.31%) and Bearing Lithium Corp. (“BRZ”) (17.14%).

• Maricunga Stage One DFS delivers US$1.4B NPV (after tax) at an 8% discount rate
  
  
• An IRR of 39.6% and a 2-year payback period
  
  
• OPEX of US$3,718 per tonne of LCE produced
  
  
• Annual EBITDA of US$324M
  
  
• Direct development cost US$419M, Indirect cost US$145M and Contingency US$62M for a total project CAPEX of US$626M
  
  
• 15,200 tonnes of LCE per annum over 20 years

Highlights

• The updated Maricunga Stage One Lithium Brine project’s Definitive Feasibility Study (DFS) supports 15,200 tonnes per annum production of lithium carbonate (LCE) for 20 years.
  
  
• Project NPV¹ (leveraged basis) of US$1.425B (after tax) at 8% discount rate, providing an IRR of 39.6% and a 2-year payback. Estimated steady-state annual EBITDA of US$324M.

¹ Assumes a 50% leverage. On a "100% Equity Basis", the NPV (after tax) is US$1.412B, providing an IRR of 29.3 % and a 2 years and 8 months Payback.

• Project operating cost places Maricunga among the most efficient producers with an OPEX of US$3,718 per tonne not including credit from potassium chloride (KCl) by-product. KCI production was not considered in the DFS.
  
  
• Project direct development cost estimated at US$419M, indirect costs at US$145M and contingency costs at US$62M to provide a total project CAPEX of US$626M.
  
  
• Exceptional ESG profile aims to achieve carbon neutrality once operation beds down, setting new standards for social relationships. Certification process led by Deloitte will continue during upcoming years as the project advances.
  
  
• Project infrastructure including water rights have been secured by long term contracts during project construction and operation. Access to the National Power Grid has been granted, ensuring future power supply including an important component of renewable energy.
  
  
• Revised DFS completed by Tier-1 engineering consultancy Worley to international standards, with cost inputs from EPC contractors to provide greater certainty on cost estimates. The Resource and Reserve estimates were prepared by Atacama Water.