May 10, 2013
International Lithium Corp. Arranges Loan From Strategic Partner, Jiangxi Ganfeng Lithium Co. Ltd.
Vancouver B.C. May 10, 2013: International Lithium Corp. ("ILC" or the "Company") (ILC: TSX-V)
is pleased to announce that Jiangxi Ganfeng Lithium Co. Ltd. ("Ganfeng
Lithium") has agreed to lend ILC a total of $2,289,000 to advance the
Company's Mariana Lithium-Potassium Brine project in Argentina and for
ILC to provide the outstanding scheduled cash payments to secure an
unencumbered 100% ownership of the Mariana project. Subject to final
approval by the TSX Venture Exchange and Ganfeng Lithium's shareholders,
Ganfeng Lithium will advance ILC a total of USD$2,289,000 ("Loan").
USD$1,199,000 will be advanced within two business days of Ganfeng
Lithium receiving shareholder approval ("First Advance"), and a further
advance of USD$1,090,000 will follow in May 2014 ("Second Advance").
The Loan will mature two years following the date of the Second Advance
and during the term of the loan ILC will pay interest of 10% per annum
on the balance of the Loan, payable quarterly.
In
lieu of receiving repayment of the loan, Ganfeng Lithium may elect to
convert into an interest in the Mariana Property. The loan agreement
contemplates that Ganfeng Lithium may convert what would otherwise be
ILC's repayment obligation for the First Advance into a 26% interest in
ILC's rights in the Mariana Property. Likewise, instead of receiving
repayment of the Second Advance, Ganfeng Lithium may convert into a 25%
interest in ILC's rights to the Mariana Property, for a total interest
of 51%. If Ganfeng Lithium elects to convert up to a 51% property
interest, at that time, the parties would enter into a joint venture
relationship for the operation of the Mariana Property.
"This
latest transaction demonstrates the confidence and continued support
ILC has received from our strategic partner Gangfeng Lithium, providing
us with the resources to move in course with exploration plans and
operations that will allow us to unlock the potential value in the
projects that we have been advancing since the formation of the
company." States Kirill Klip, President of International Lithium Corp.
About GanfengLithium Co. Ltd.
Ganfeng Lithium based in Xinyu, Jiangxi Province, China, is a professional producer of lithium products which has developed a comprehensive product chain, including lithium metal and alloys, inorganic and organic lithium chemicals, supplies a wide range of lithium products for primary and secondary lithium battery market, pharmaceutical and new material industries. Ganfeng Lithium's principal market is in China with international exports to Europe, Japan, the USA and India. Ganfeng Lithium was founded in 2000 and listed on the Shenzhen Stock Exchange in August 2010, notably as the first publicly listed lithium company in China and has experienced rapid continuous growth over the last 12 years.
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 Jiangxi Ganfeng Lithium Co. Ltd., a leading China based lithium product manufacturer.
The
Company's primary focus is the Mariana lithium-potash brine project in
Argentina within the renowned South American 'Lithium Belt' that is host
to the vast majority of global lithium resources, reserves and
production. The 160 square kilometre Mariana project strategically
encompasses an entire mineral rich evaporite basin that ranks as one of
the more prospective salarsor 'salt lakes' in the region.
Complementing
the Company's lithium brine projects are rare metals pegmatite
properties in Canada and Ireland that have revealed through recent
highly positive results a clear potential that the Company will advance
with the support of its strategic partner, Ganfeng Lithium. These
projects can add distinct value as the Company strives to source rare
metals to help meet the increasing demand through the growth in global
technologies that utilize the rare metals suite of elements.
With
the increasing demand of high tech applications in battery and vehicle
propulsion technologies, lithium and other rare metals are no doubt the
metals of tomorrow's green tech economy. By positioning itself with
solid development partners and projects with significant resource
potential, ILC aims to be the green tech resource developer of choice
for investors and build value for its shareholders.
International
Lithium mission is to find, explore and develop projects which have the
potential to become world class lithium, potash and rare metal
deposits.
On behalf of the Board of Directors,
KirillKlip
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.
