International Lithium's Strategic Partner, Ganfeng Lithium, Takes Large Stake in Mariana and a $10 million Option on the Blackstairs Projects
Mar 19, 2014 (ACCESSWIRE via COMTEX) -- Vancouver, B.C. / ACCESSWIRE / March - 2014 / International Lithium Corp. (the "Company" or "ILC") announces several major transactions with strategic partner GFL International Co., Ltd. ("Ganfeng Lithium" or "GFL").
ILC and strategic partner Ganfeng Lithium have finalized two separate agreements. The parties have finalized their joint venture agreement for operation of the Blackstairs lithium pegmatite project in Ireland and have entered into a loan conversion and investment agreement on 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. The aggregate work commitments on both projects is approximately $20 million.
The resultant ownership of the Blackstairs project will be 51% GFL and 49% ILC until the CAN$10 million expenditures are reached or a positive feasibility study is produced for the project at which time the ownership will be 75% GFL and 25% ILC.
The resultant ownership of the Mariana project if all conditions are met will be 80% GFL and 20% ILC. ILC is granted a back in right to acquire an additional 10% in the project following the completion of a Feasibility Study (as described in National Instrument 43-101 - Standards of Disclosure for Mineral Projects) that demonstrates the feasibility of placing the Mariana Property or part thereof into commercial production. Additionally, GFL will grant ILC a loan for up to $2 million to carry ILC's participating interest in the project, which if fully executed will amount to a total of US$10 million being expended on the project. The loan (and any accrued interest) is repayable from ILC's proportionate share of the proceeds from the joint venture.
Blackstairs Lithium Project, Ireland - Joint Venture
Further to the Company's press releases dated October 2, 2012 and November 14, 2012, announcing the original option terms, GFL have approved and finalized a joint venture agreement on the Blackstairs Lithium project in Ireland. GFL exercised their option to acquire 51% of the Blackstairs project (press release October 1, 2013) and subsequently, according to the option agreement have now entered into a joint venture with the Company with the possibility to acquire an additional 24% in the project by spending CAN$10,000,000 within 10 years or producing a positive feasibility study. According to the terms of the joint venture agreement, ILC has formed an Irish subsidiary company, Blackstairs Lithium Ltd. ("BLL"), where 51% of the shares will be held by GFL. BLL will act as the joint venture company and carry out any and all activities required to advance the project. ILC will initially be the manager of the project and will receive a management fee of up to 10% of the exploration expenditures. The companies are currently working out the budget for the first phase of exploration at Blackstairs.
