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VANCOUVER, British Columbia,
Oct. 2, 2012 /PRNewswire/ -- International Lithium Corp. ("ILC" or the "Company") (ILC: TSX-V) is pleased to announce that, further to its news release on
July 30, 2012, the Company has signed a formal option agreement (the "Option Agreement") with GFL International Co. Ltd ("GFL"), an investment company wholly owned by Jiangxi Ganfeng Lithium Co. Ltd. ("Ganfeng Lithium"), to earn up to a 100% interest in ILC's Blackstairs project (the "Blackstairs Project") in
Under the terms of the Option Agreement:
GFL can earn a 51% interest (the "First Option") in the Blackstairs Project by:
incurring a minimum of $300,000 in exploration expenditures within 18 months of signing the Option Agreement (the "Effective Date"); and
paying ILC an aggregate of $500,000 in cash within one year from the Effective Date - $25,000 on the Effective Date and $475,000 on the first anniversary of the Effective Date.
GFL can earn an additional 24% interest (the "Second Option") in the Blackstairs Project by incurring up to an additional
$10,000,000 in exploration expenditures or producing a positive Feasibility Study no later than 10 years from the Effective Date.
At any time during 6 months from the Effective Date, GFL can acquire a 100% interest in the Blackstairs Project by:
paying ILC an aggregate of $2,000,000 in cash - $400,000 within 6 months of the Effective Date and $1,600,000 on the date ILC's 100% interest in the Blackstairs Project has been transferred to GFL or a nominee of GFL; and
granting ILC a 2% net smelter royalty on the Blackstairs Project.
"This joint venture with Ganfeng Lithium will help to advance our highly prospective Blackstairs Lithium project in
Ireland. It also allows for ILC to build a stronger working relationship with Ganfeng Lithium on a more diverse portfolio of exploration projects. We are confident that ILC will succeed in providing our strategic partners with a source for their operations, benefiting both companies' future growth and value."
Kirill Klip, President, International Lithium Corp.
In addition to the "Option Agreement", GFL has signed a formal loan agreement (the "Loan Agreement") to lend ILC a total of
$2,000,000 (the "Loan") to advance the Company's Mariana Lithium-Potassium Brine project in
Argentina and for general corporate purposes.
Ganfeng Lithium will advance ILC
$1,000,000 (the "First Advance") on or before
October 12, 2012 with the second
$1,000,000 to be advanced on or before
October 31, 2012. The First Advance is convertible into common shares of the Company at a price of
$0.08 per common share, during the first year of the Loan Agreement, and at a price of
$0.10 per common share, during the second year of the Loan Agreement. ILC will pay interest on the outstanding amount of the Loan at 10% per annum, payable quarterly.
Both the Option Agreement and the Loan Agreement are subject to approval by the Chinese Securities Regulatory and Exchange Commission, the TSX Venture Exchange and may also be subject to other Canadian regulatory approvals.