Vancouver, B.C. March 14, 2016 International Lithium Corp. (the “Company” or “ILC”) (TSX Venture: ILC.V) is pleased to announce it has entered into an Option Agreement and Strategic Alliance with Australian Stock Exchange-listed Pioneer Resources Limited (“Pioneer”) (ASX:PIO). Under the terms of the Agreement Pioneer can earn up to an 80% interest in ILC’s 100% owned Mavis Lake property, which includes the Fairservice patented mining leases (the “Mavis Lithium Project”), located near Dryden, Ontario, Canada.
Benefits to the Strategic Alliance
This agreement enables the new alliance to test multiple undrilled pegmatite targets within the project area. It also allows for further acquisitions that builds the alliance’s ability to engage emerging lithium market opportunities.
The Option Agreement, which is subject to a three month exclusivity and due diligence period, provides Pioneer with:
- Immediate, direct exposure to the lithium sector through equity in the advancing Mavis Lithium Project, which have known lithium bearing pegmatites;
- The ability to increase the project portfolio through further acquisitions and staking opportunities;
- An offtake strategy through ILC.
Under the terms of the Agreement, Pioneer will manage the exploration program on the Mavis Lithium Project utilizing ILC’s technical team, who are currently advancing the Avalonia lithium pegmatite project in Ireland and the Mariana lithium brine project in Argentina.
The Agreement provides ILC with the first stage of their North American strategy to join with Strategic Partners and to advance lithium opportunities with them that have no infrastructure constraints, consequently making potential mining projects less capital intensive.
Pioneer brings a management team of individuals having over 30 years of corporate and technical experience in mineral exploration, finance, a good track record of discoveries and mine development.
Mr. Gary Schellenberg, CEO, International Lithium Corp. stated, “This is the first step of our new strategy developed for North America. We see an escalating demand for lithium in North America, especially in the automotive sector with new sources being either many years away, or with logistic and metallurgical challenges. Our strategy for the Upper Canada region sees us advancing a multitude of smaller deposits that possess near perfect accessible infrastructure and that can supply a central lithium carbonate processing facility. Identifying smaller high-grade deposits within close proximity can greatly enhance the economics of a processing facility as well as allowing these smaller deposits to be mined at a greatly reduced CAPEX. We intend on bringing our strategy to reality through strategic partners, like Pioneer, that share our vision.”
Key Terms of the Transaction
- Pioneer will either pay CAN$65,000 cash to ILC or subject to TSXV approval, subscribe for $100,000 of units of ILC at a price of $0.08 per unit (as part of the recently announced financing ILC NR 2 March 2016) in exchange for an exclusive 90-day due diligence period.
- On electing to proceed, Pioneer may earn a 51% interest in the project by expending CAN$1.5 million on exploration activities within three years and paying to ILC a total of CAN$375,000 in cash and shares 50/50 over the same three years (the “First Earn-in”).
- Following the First Earn-in, ILC will be granted a 1.5% Net Smelter Return royalty (“NSR”), purchasable at any time for CAN$1.5 million.
- Pioneer will then be granted, if they choose, a Second Option where they can earn an additional 29% through expending CAN$8.5 million within seven years (total CAN$10 million over ten years). Thereafter the Parties will contribute on a pro-rata basis. If either Party dilutes to 15% Project Equity, their interest is converted to a 1.5% NSR.
About Mavis Lithium Project
Key factors that make the Mavis Lithium Project attractive are its location and established infrastructure. Situated only 19 kilometres from the town of Dryden, Ontario and approximately 300 kilometres via the Trans-Canada Highway to Thunder Bay, an industrial centre in Ontario. Rail and power access are also readily available as well as a skilled workforce, experienced in sustainable natural resource development. The claim blocks comprise a total of 2,624 hectares and straddle a continuous pegmatite field exhibiting high-grade, well-evolved, lithium and tantalum zonation as well as significant levels of caesium and rubidium.
Mr Wayne Spilsbury, a Director of ILC is also a Director of Pioneer.All widths reported are drill core widths and have not been converted into true width. These results were previously reported in news releases by the Company dated 10 January 2012 and 3 April 2013 and in the Company’s MD&A for the year ending 31 December 2012.
John Harrop, P.Geo, FGS, is a Qualified Person as defined under NI 43-101 and has supervised preparation of the technical information contained in this news release.
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 (Mavis project) and Ireland (Avalonia project). 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”, sustainable 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 resource explorer of choice for investors in green tech and build value for its shareholders.
On behalf of the Board of Directors,
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.