VANCOUVER, British Columbia, March 20, 2012 /PRNewswire/ -- International Lithium Corp. ("ILC" or the "Company") is pleased to announce that Jiangxi Ganfeng Lithium Co. Ltd. ("Ganfeng Lithium"), a leading China based multi-product lithium manufacturer, will increase through a Private Placement its equity stake in ILC to 14.7% on a non-diluted basis.
- Strategic Partner Ganfeng Lithium increases ownership in ILC to 14.7%; and
- Financial commitment reflects continued support of ILC's management and projects.
"International Lithium has delivered impressive technical successes as demonstrated from recent exploration results on numerous ILC projects, and I am pleased to see this vote of confidence from our strategic partner. Our partnership with China based Ganfeng Lithium Co., Ltd. continues to provide the Company with crucial technical and financial support. Our mutual goal is to position the Company in the potential supply chain of strategic commodities for the coming green technological revolution," states Kirill Klip, President of the Company.
The Ganfeng Lithium Board of Directors has approved through its wholly owned subsidiary GFL International Co., Ltd, registered in Hong Kong, to purchase 4,347,826 common shares in ILC through participating in a Private Placement at $0.115 per share for gross proceeds of $500,000 (the "Financing"). Completion of the Financing is subject to Exchange approval.
Ganfeng Lithium originally committed through a Strategic Relationship Agreement to an initial investment consisting of a 9.99% equity stake in ILC (for further details refer to the Company's press release dated April 18, 2011). The Financing represents a significant increase to Ganfeng Lithium's equity stake and reflects Ganfeng Lithium's continued support of ILC's management and projects.
Certain fees may be payable on a portion of the placement, in compliance with Exchange requirements. The common shares sold under the Financing will be restricted from trading for 4 months in accordance with applicable securities laws.
ABOUT JIANGXI GANFENG LITHIUM 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, and supplies a wide range of lithium products for primary and secondary lithium battery markets, pharmaceutical and new material industries. Ganfeng's principal market is in China with international exports to Europe, Japan, USA and India.
"Ganfeng Lithium, as a leading lithium downstream products producer in Asia, has recently announced in the company's 2011 annual report USD75 million in sales revenue, representing a 34% increase over the previous year. Currently Ganfeng consumes a significant volume of lithium raw material, but taking into account projected business growth, sourcing a future supply of lithium becomes more and more important to support Ganfeng Lithium's core business. Increasing our share in ILC is part of our raw materials strategy," states Wang Xiaoshen, Executive VP of Ganfeng Lithium Co., Ltd.
Ganfeng Lithium was founded in the year 2000; it was 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 10 years.
ABOUT INTERNATIONAL LITHIUM CORP
International Lithium Corp. is a rare metals mineral 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.
ILC currently has 9 active rare metals projects, well balanced between lithium-potash brines in Argentina, Nevada and hard-rock pegmatites in Canada and Ireland. The Company's primary focus is the Mariana lithium-potash brine project, a salar or 'salt lake,' covering an expansive 160 square kilometres and strategically encompassing the entire basin. Mariana is located in the renowned South American 'Lithium Belt' centred on the junction of Argentina, Bolivia and Chile that is host to the vast majority of global lithium resources, reserves and production. The Mariana lithium-potash brine project ranks as one of the more prospective salars in the region.
Complementing the Company's lithium brine projects are the rare metals pegmatite properties. The key characteristics shared by the hard-rock rare metals projects are their limited past exploration, excellent accessibility, limited assaying for rare metals, clear potential for additional exploration to add project value and development potential to meet the global technological growth in demand for the rare metals suite of elements.
International Lithium Corp.'s mandate is to increase shareholder value through aggressive advancement of its core projects and to source joint venture partners to expand the scope and diversify risk of its exploration effort.
On behalf of the Board,
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.
Stock Symbol: ILC:TSXV
Shares CUSIP: #459820 10 6
Warrants Symbol: ILC.WT
Warrant CUSIP: #459820 11 4
SOURCE International Lithium Corp.