Leading Edge Materials Corp., Vancouver, Canada, (TSXV: LEM) (Nasdaq First North: LEMSE) (OTCQB: LEMIF) has completed the sale to United Lithium Corp. (“ULTH”), Vancouver, Canada, of 100% of the issued and outstanding share capital of Bergby Lithium AB, which holds a 100% interest in the mining licenses comprising the Bergby Lithium project located in central Sweden, 25km north of Gavle.
Pursuant to the Transaction, in consideration for the shares of Bergby, the Company’s wholly owned subsidiary, Tasman Metals AB, Gränna Sweden, as the owner of the Bergby shares, received from UTLH:
- CAD 250,000 in cash;
- 1,031,864 common shares in the capital of ULTH (each, a “ULTH Share”), valued at CAD 1,042,183 using ULTH closing price of CAD 1.01 on the CSE on April 29, 2021;
- 400,000 common share purchase warrants (the “Warrants”), with each Warrant entitling Tasman Metals to acquire, for a period of 36 months from the closing date of the Transaction, one common share in the capital of ULTH at an exercise price equal to approximately CAD 0.485; and
- a 2% net smelter returns royalty on the Project, which is subject to a buyback right in favour of ULTH, exercisable for CAD 1,000,000.
The ULTH Shares will be escrowed and released over a 20-month period. ULTH shall also pay an additional CAD 250,000 in cash on October 29, 2021.
In addition to the foregoing, ULTH has committed to exercise reasonable commercial efforts toward spending CAD 1,000,000 on exploration work on the Project prior to October 29, 2022, and the Company will, at its cost, make available to ULTH the part-time services of its Chief Geologist to provide geological support in exploring the Project until April 29, 2022.
Filip Kozlowski, CEO of Leading Edge Materials states “With the completion of the sale of Bergby we now look forward to follow United Lithium as they further explore this exciting project with us sharing any success as shareholders. On our side we now remain focused on finishing work together with our consultants on the two ongoing preliminary economic assessment projects and will publish results from those as soon as they are finalized. Progressing the Norra Karr HREE and Woxna Graphite projects to the next phase of development is in line with our vision to become a leading European supplier of critical raw materials.”
About Leading Edge Materials
Leading Edge Materials is a Canadian public company focused on developing a portfolio of critical raw material projects located in the European Union. Critical raw materials are determined as such by the European Union based on their economic importance and supply risk. They are directly linked to high growth technologies such as batteries for electromobility and energy storage and permanent magnets for electric motors and wind power that underpin the clean energy transition towards climate neutrality. The portfolio of projects includes the 100% owned Woxna Graphite mine (Sweden), Norra Kärr HREE project (Sweden) and the 51% owned Bihor Sud Nickel Cobalt exploration alliance (Romania).
About United Lithium Corp.
United Lithium Corp. (CSE: ULTH) is an exploration & development company energized by the global demand for lithium. The company is targeting lithium projects in politically safe jurisdictions with advanced infrastructure that allows for rapid and cost-effective exploration, development and production opportunities.