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 Ireland.
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.