VANCOUVER, British Columbia, July 30, 2012 /PRNewswire/ -- International Lithium Corp. ("ILC" or the "Company") (ILC: TSX-V) is pleased to announce that GFL International Co. Ltd, an investment company wholly owned by Ganfeng Lithium Co. Ltd. ("Ganfeng Lithium"), a leading China based multi-product lithium manufacturer has entered into a Letter of Intent ("LOI") option to earn a 75% interest in ILC's Blackstairs project in Ireland.
In recent discussions with GFL, a strategic partner and equity stakeholder in ILC, the Blackstairs project was identified as a highly prospective lithium exploration prospect. The Blackstairs project is located 80 kilometers south of Dublin in Ireland's Leinster Pegmatite Belt, an extensive lithium bearing pegmatite belt that extends for over 50 kilometers. ILC currently has a 100% interest in eight prospecting licenses covering 292 square kilometers. Evidence of high-grade lithium is identified at surface by boulder occurrences. Past exploration efforts were hampered by the lack of outcropping pegmatite. ILC will apply modern exploration technologies to highlight areas for drill testing.
Under the terms of the LOI GFL will earn a 75% interest in the Blackstairs project by:
- Producing a bankable feasibility study within ten years of entering into the venture,
- Incurring a minimum of $150,000 in exploration expenditures per year, and
- Making $500,000 in cash payments to ILC over a three year period, $100,000 upon signing of a final agreement, $100,000 on the first anniversary and $300,000 on the second anniversary.
In addition, GFL has entered into a LOI to lend ILC a total of $2,000,000 to advance the Company's Mariana Lithium-Potassium Brine project in Argentina and for general corporate purposes.Ganfeng will advance ILC $1 million as soon as possible with the second $1 million advanced within the following two months. The first $1 million advance, or portion thereof, is convertible into shares of the Company at a price of $0.10 per share, during the first year of the agreement. ILC will pay interest of 10% per annum, payable quarterly. The term of the loan is for one year with the provision for ILC to extend to two years by issuing additional bonus shares.