International Lithium Corp. (the "Company" or "ILC") (TSX VENTURE:ILC.V) announces strategic partner GFL International Co., Ltd. ("Ganfeng Lithium" or "GFL") received shareholder approval for the Loan Conversion and Investment Agreement (the "Agreement") announced by the Company on March 19, 2014.
The Agreement gives GFL increased ownership in the Mariana lithium brine project in Argentina in exchange for work commitments and the cancellation of approximately US$3.3 million in loans plus interest indebted to GFL (see NR March 19, 2014). Additionally the Agreement gives GFL the sole and exclusive right and option to earn an additional 10% interest in the Mariana Property by paying ILC US$450,000 within 15 days of GFL receiving the shareholder approval announced herein.
The resultant ownership of the Mariana project if all conditions are met will be 80% GFL and 20% ILC.
Other noteworthy terms of the Agreement include a back in right granted to ILC to acquire 10% in the project following the completion of a Feasibility Study and GFL granting ILC loans for up to $2 million to carry ILC's participating interest in the project.
ILC and GFL are now beginning the process of formally defining their joint venture on the Mariana lithium brine project and reviewing proposed budgets to advance the project quickly and efficiently.
"We are encouraged the shareholders of Ganfeng Lithium trust that the Mariana project is a solid investment decision. International Lithium will benefit from this closer relationship with Ganfeng Lithium as we are not only receiving capital for project advancement, but also gaining access to the unique technologies of our strategic partner that can be tailored to the Mariana brine and reduce our research and capital costs during the exploration, feasibility and production stages of project development. Our immediate goals are to define mineral resources at the Mariana Property and investigate the project's economic potential," Kirill Klip, President, International Lithium Corp.
About International Lithium Corp.
International Lithium Corp. is an exploration company with an outstanding portfolio of projects, strong management ownership, robust financial support and a strategic partner and keystone investor Ganfeng Lithium Co. Ltd., a leading China based lithium product manufacturer.
The Company's primary focus is the Mariana lithium-potash brine project, within the renowned South American "Lithium Belt" that is the host to the vast majority of global lithium resources, reserves and production. The 160 square kilometre Mariana project strategically encompasses an entire mineral rich evaporate basin that ranks as one of the more prospective salars or 'salt lakes" in the region.
Complementing the Company's lithium brine project are rare metals pegmatite properties in Canada and Ireland. These projects reported highly encouraging lithium mineralization in drill holes targeting pegmatites that are unexposed at surface (news releases dated April 3,2013 and June 25, 2013).
With the increasing demand for high tech rechargeable batteries used in vehicle propulsion technologies and portable electronics, lithium is paramount to tomorrow's "green-tech" economy. By positioning itself with solid development partners and acquiring high quality grass roots projects at an early stage of exploration, ILC aims to be the green tech resource explorer of choice for investors and build value for its shareholders.
On behalf of the Board of Directors,
Kirill Klip
President, International Lithium Corp.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Statements in this press release other than purely historical information, historical estimates should not be relied upon, including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. News release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
SOURCE: International Lithium Corp.