Leading Edge Materials Signs Non-Binding Loi to Sell 100% of the Bergby Lithium Project
07 December 2020 - 6:00PM
Vancouver, December 6, 2020 – Leading Edge
Materials Corp. (“Leading Edge Materials”
or the “Company”) (TSXV: LEM)
(Nasdaq First North: LEMSE) (OTCQB:
LEMIF) is pleased to announce it has signed a non-binding
Letter of Intent (the “LOI”) with CSE-listed United Lithium Corp.
(“ULTH”) contemplating the potential sale of 100% of the Bergby
Lithium project (the “Transaction”).
The LOI is non-binding and the Transaction is
subject to, among other matters, a due-diligence review By ULTH and
the signing of a binding Definitive Agreement (the “DA”). There is
no certainty that the parties will be able to conclude the
Transaction. The LOI is non-binding and neither the Company nor
ULTH is under any obligation to enter into, or continue
negotiations regarding, the DA or to proceed with the Transaction.
Other than as specifically set out in the LOI, no binding agreement
will exist between the Company and ULTH relating to the Transaction
unless and until the DA has been finalized and executed. Key terms
of the proposed Transaction are stated in the LOI as follows (all
numbers Canadian dollars unless specified otherwise):
- $250,000 in cash on the closing date of the Transaction (the
“Closing Date”);
- $500,000 worth of common shares in the capital of ULTH (each, a
“ULTH Share”) at an issue price equal to a 20% discount to the
10-day volume weighted average trading price of ULTH on the
Canadian Securities Exchange (“CSE”) as of the date immediately
preceding the signing date of the LOI (the “Deemed Price”);
- 400,000 common share purchase warrants (the “Warrants”) with
each Warrant entitling the Company to acquire, for a period of 36
months, one ULTH Share at an exercise price equal to the Deemed
Price;
- $250,000 in cash on the date that is six (6) months following
the Closing Date;
- The ULTH Shares issued by ULTH to the Company will be subject
to an escrow agreement to be agreed to by the Company and ULTH with
20% of the ULTH Shares being released after each subsequent four
(4) month period following the Closing Date;
- Subject to the Company acquiring certain additional mineral
claims in the region of the Bergby Lithium project (“Bergby”)
before March 21, 2021 (the “Bonus Date”), that will be included in
the Transaction, an additional number of common share purchase
warrants (“Bonus Warrants”) calculated as $250,000 divided by the
10-day volume weighted average trading price of the Purchaser
Shares on the CSE as of the date immediately preceding the Bonus
Date (the “Bonus Price”) with each Bonus Warrant entitling the
Company to acquire, for a period of 36 months, one ULTH Share at an
exercisable price equal to the Bonus Price;
- ULTH shall commit to exercise reasonable commercial effort to
spend $1,000,000 on exploration work on Bergby within 18 months
from the Closing Date;
- The Company will agree to make available at its cost to ULTH
the part-time services of its Chief Geologist to provide geological
support in exploring Bergby for a period of 12 months following the
Closing Date; and
- ULTH will agree to grant to the Company a 2% net smelter
returns royalty on Bergby which shall be subject to a buyback right
in favour of ULTH for $1,000,000.
The Company and ULTH have agreed to a 60-day
exclusivity period during which they will negotiate exclusively
with each other with a view to settling the DA. There can be no
assurances that any component of the Transaction will proceed, nor
can there be any assurance as to the final definitive terms
thereof.
Filip Kozlowski, CEO states “The Bergby lithium
project was discovered by the Company in 2016 as one of few
hard-rock lithium deposits in Sweden with potential. Previous work
clearly shows potential for further exploration and expansion of
the discovery. Having two other significant projects in our
portfolio has limited our capacity to give Bergby the proper
attention it deserves, and it is therefore pleasing to sell this
project to a dedicated lithium-explorer such as United Lithium
Corp. and share the potential upside of future committed
exploration work on the project through the shares and warrants we
receive as part of the transaction. The proceeds from the sale of
Bergby will enable the Company to focus on our advanced Woxna and
Norra Kärr projects.”
Michael Dehn, President and CEO of United
Lithium Corp iterated “We approached Leading Edge Materials on the
Bergby lithium project as we felt it geologically resembles
spodumene and petalite rich pegmatites found in and around the
Tanco Li-Ta-Cs Mine in Manitoba. Given that the property has
excellent logistics including being approximately 130 km from
Stockholm’s Arlanda International Airport, and close to the
European market where we see increasing demand of lithium for the
battery industry, as well as traditional use in pharmacology,
military application, nuclear reactors, glasses and ceramics,
lubricants and space vehicle for carbon absorption/oxygen release,
we feel that Bergby can add value to both our shareholders and
Leading Edge Material’s shareholders relatively rapidly.”
The Bergby lithium project located in central
Sweden 25km north of Gavle was staked by the Company in 2016 and
covers three exploration permits for a total of 1903Ha. A
prospecting campaign with mapping and sampling identified an
extensive lithium-mineralized spodumene pegmatite boulder field and
outcrops. The discovery was followed up with two separate drilling
campaigns totaling 1525m of drilling in 33 drill holes to a maximum
depth of 131.1m over an approximate 1500m strike length with
intersections of high grade lithium mineralizations.
On behalf of the Board of Directors,
Leading Edge Materials Corp.
Filip Kozlowski, CEO
For further information, please contact the Company
at: info@leadingedgematerials.com
www.leadingedgematerials.com
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 lithium-ion batteries and permanent magnets
for electric motors and wind power that underpin the sustainability
transition of society. The portfolio of projects includes the 100%
owned Woxna Graphite mine (Sweden), Norra Kärr HREE project
(Sweden), Bergby lithium 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.
Additional Information
The Company's consolidated financial statements
and related management's discussion and analysis are available on
the Company's website at www.leadingedgematerials.com or under its
profile on SEDAR at www.sedar.com
This information is information that Leading
Edge Materials Corp. (publ). is obliged to make public pursuant to
the EU Market Abuse Regulation. The information was submitted
for publication through the agency of the contact person set out
above, on December 6, 2020 at 11:00 pm Vancouver time.
Leading Edge Materials is listed on the TSXV
under the symbol “LEM”, OTCQB under the symbol “LEMIF” and Nasdaq
First North Stockholm under the symbol "LEMSE". Mangold
Fondkommission AB is the Company’s Certified Adviser on Nasdaq
First North and may be contacted via email CA@mangold.se or by
phone +46 (0) 8 5030 1550.
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.
Reader Advisory
This news release may contain statements which
constitute “forward-looking information” under applicable Canadian
securities laws, including statements regarding plans, intentions,
beliefs and current expectations of the Company, its directors, or
its officers with respect to the future business activities of the
Company or with respect to the LOI and the likelihood that the DA
will be entered into and the Transaction will be consummated.
The words “may”, “would”, “could”, “will”, “intend”, “plan”,
“anticipate”, “believe”, “estimate”, “expect” and similar
expressions, as they relate to the Company, or its management, are
intended to identify such forward-looking information. Investors
are cautioned that any such forward-looking information is not a
guarantee of future business activities and involves risks and
uncertainties, and that the Company’s future business activities
may differ materially from those in the forward-looking information
as a result of various factors, including, but not limited to,
fluctuations in market prices, risks relating to the preliminary
and non-binding nature of the LOI, the inability of the parties to
satisfy the conditions precedent to the execution of the LOI or
ultimately agree on definitive terms, successes of the operations
of the Company, continued availability of capital and financing and
general economic, market or business conditions. There can be no
assurances that such information will prove accurate and,
therefore, readers are advised to rely on their own evaluation of
such uncertainties. The Company does not assume any obligation to
update any forward-looking information except as required under the
applicable securities laws.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accept responsibility for the
adequacy or accuracy of this news release.
- 20201206 LEM signs non-binding LOI to sell 100% of Bergby
lithium project
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