VANCOUVER, British Columbia, May 10, 2022 (GLOBE NEWSWIRE) -- Ultra Lithium Inc. (TSX-V: ULT – OTCQB: ULTXF) (“Ultra Lithium” or “the Company”) is pleased to announce it has closed the sale of a 60% interest in the Company’s Georgia Lake and Forgan Lake properties (the “Northern Ontario Properties”) to Yahua International Investment and Development Co., Ltd. (“Yahua”) pursuant to the previously announced Purchase, Sale and Joint Venture Agreement (the “Agreement”) (see news released dated April 20, 2022)
Purchase and Sale Agreement
Under the terms of the Agreement Ultra Lithium received payments totalling $5 million from Yahua for a 60% interest in the Company’s subsidiary which holds the Company’s Northern Ontario Properties. The Joint Venture (JV) with Yahua holding a 60% and Ultra Lithium holding a 40% interest has been formed.
Dr. Weiguo Lang, CEO of Ultra Lithium, stated, “We are very excited about this agreement which will not only provide financial strength to the Company but also will bring opportunities for the Northwestern Ontario Lithium exploration projects. We want to closely work with the local communities to develop the Georgia Lake / Forgan Lake properties with financial backing of a large lithium producer in the world. Now that Yahua’s acquisition of a 60% interest in the Northern Ontario Properties has been completed Yahua will invest $3 million into the JV Co. for exploration expenditures. The Company looks forward to embarking on its spring/summer 2022 exploration program.”
Joint Venture
Under the terms of the agreement, Ultra Lithium will continue to pursue acquisition opportunities to increase high-quality hard-rock lithium resources with lithium-bearing pegmatites and continue to explore and discover more lithium resources in Canada for the JV Co.
Corporate governance
The Board of Directors of the JV will have five members, three of whom will be nominated by Yahua International and two by Ultra Lithium. The senior executives of the JV will be nominated and appointed by the Board of Directors. The Parties shall operate and manage the JV in accordance with the terms of the Shareholders Agreement of the Joint Venture.
Prohibition of dilution
The Parties shall retain their equity positions in the JV and prohibit dilution until commencement of commercial production. International Lithium Corp. will retain its 1.5% NSR on the Forgan Lake claims.
Regulatory Approval
The agreement is subject to receipt of all necessary regulatory approvals including the TSX Venture Exchange.
Forgan Lake
The Forgan Lake property consists of approximately 256 hectares land in 20 mining claims located in the Thunder Bay Mining District in Northwestern Ontario, Canada. It is located adjacent to the north of Ultra Lithium’s Lucky Lake claim block comprised of 15 mining claims. The Company intends to start a summer 2022 work program on Forgan Lake which will include surface sampling and ground geophysical surveying. A drill program will commence as soon as permitting and community consultation is completed.
Highlights
- Lithium mineralization is comprised of six spodumene-bearing pegmatites
- Three 2019 grab samples showed lithium values of 6.93% Li2O, 6.90% Li2O and 4.88% Li2O
- Historical exploration in the 1950s’ included 39 drill holes, aggregating 10,561 feet
- Three historical channel cut samples returned average 2.57% Li2O over a width of 21 feet (6.4 m)
- Two historical channel cut samples averaged 4.23% Li2O over 24.5 feet (7.46m)
Georgia Lake
The Georgia Lake property consists of 88 mining claims in the Thunder Bay Mining Division, Northwestern Ontario. The Company is planning a 2000-meter drill program at Georgia Lake to commence in late May after the spring breakup. The Company is in the process of engaging a drilling contractor.
Highlights
- Drilling permit has been received
- Geophysical survey completed winter 2021
- Trenching completed winter 2021
CAUTIONARY NOTE: The historical results presented above are taken from the Ontario Department of Mines Geological Report No. 31 titled, “Geology and Lithium Deposits of Georgia Lake Area”, by E.G. Pye, (1965), and 2009 Assessment work Report by TNR Gold Corp. A qualified person has not done sufficient work to verify the results; therefore, they should not be relied upon and are presented for informational purposes only.
About Yahua
Founded in 1952, Yahua group is one of the earliest chemical companies established after the founding of the People’s Republic of China, currently has two main businesses, lithium industry and civil explosive industry. Yahua is a public company listed in Shenzhen Stock Exchange with the market cap of 34 billion RMB (approximately C$7 billion). It has more than 70 wholly-owned and holding subsidiaries, which are distributed throughout China, Hong Kong, New Zealand, Australia and other countries.
Yahua Lithium is one of the major suppliers of lithium salt products in the world and one of the largest lithium hydroxide suppliers for TESLA. It is specialized in the R&D, manufacturing, and trading of lithium products, with the capacity of 43,000 tons of lithium hydroxide and lithium carbonate. The products are widely used in battery, medicine, metallurgy, petrochemical, glass, nuclear industry and other industries. It has established long-term sales and purchase relationship with Zhenhua Materials, BTR, Xiamen Xiawu, BYD, Beijing Easpring Material Technology Co., Ltd, Ronbay Technology Battery and other domestic cathode materials leading enterprises, as well as Japan and South Korea's well-known cathode materials enterprises, and supply indirectly through industrial chain to BMW, Volkswagen, Weilai and other global new energy automobile enterprises.
Qualified Person
The technical information contained in this news release has been reviewed and approved by Afzaal Pirzada, P.Geo., a qualified person, as defined by NI 43-101 who works as Vice President Exploration of the Company.
ON BEHALF OF THE BOARD OF DIRECTORS
“Kiki Smith”
Kiki Smith, CFO
About Ultra Lithium Inc.
Ultra Lithium Inc. is an exploration and development company with a focus on the acquisition and development of lithium, gold, and copper assets. The Company holds a brine lithium property in Argentina, and hard rock spodumene type lithium properties at the Georgia Lake / Forgan Lake area in northwestern Ontario, Canada, and a brine lithium property in the Big Smoky Valley, Nevada, USA. The Company also holds other gold and base metals properties in Argentina.
For further information, please contact the Company at:
Attention: Kiki Smith
Telephone: 778 968-1176
Email: kiki@ultralithium.com
Website: www.ultralithium.com
or view the Company’s filings at www.SEDAR.com
Cautionary Statement Regarding “Forward-Looking” Information
Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as “plans”, “expects”, “intends”, “is expected”, “potential”, “suggests” or variations of such words or phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company’s control. Actual results and developments are likely to differ and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
