VANCOUVER, British Columbia, July 30, 2012 /PRNewswire/ -- International Lithium Corp. ("ILC" or the "Company") (ILC: TSX-V) is pleased to announce that GFL International Co. Ltd, an investment company wholly owned by Ganfeng Lithium Co. Ltd. ("Ganfeng Lithium"), a leading China based multi-product lithium manufacturer has entered into a Letter of Intent ("LOI") option to earn a 75% interest in ILC's Blackstairs project in Ireland.
In recent discussions with GFL, a strategic partner and equity stakeholder in ILC, the Blackstairs project was identified as a highly prospective lithium exploration prospect. The Blackstairs project is located 80 kilometers south of Dublin in Ireland's Leinster Pegmatite Belt, an extensive lithium bearing pegmatite belt that extends for over 50 kilometers. ILC currently has a 100% interest in eight prospecting licenses covering 292 square kilometers. Evidence of high-grade lithium is identified at surface by boulder occurrences. Past exploration efforts were hampered by the lack of outcropping pegmatite. ILC will apply modern exploration technologies to highlight areas for drill testing.
Under the terms of the LOI GFL will earn a 75% interest in the Blackstairs project by:
- Producing a bankable feasibility study within ten years of entering into the venture,
- Incurring a minimum of $150,000 in exploration expenditures per year, and
- Making $500,000 in cash payments to ILC over a three year period, $100,000 upon signing of a final agreement, $100,000 on the first anniversary and $300,000 on the second anniversary.
In addition, GFL has entered into a LOI to lend ILC a total of $2,000,000 to advance the Company's Mariana Lithium-Potassium Brine project in Argentina and for general corporate purposes.
Ganfeng will advance ILC $1 million as soon as possible with the second $1 million advanced within the following two months. The first $1 million advance, or portion thereof, is convertible into shares of the Company at a price of $0.10 per share, during the first year of the agreement. ILC will pay interest of 10% per annum, payable quarterly.
The term of the loan is for one year with the provision for ILC to extend to two years by issuing additional bonus shares.
GFL will receive a total of 500,000 bonus shares of ILC for the initial loan for one year with up to an additional 500,000 shares payable if the Company elects to extend the entire $2 million loan to two years.
Both the LOI's are non-binding with final agreements subject to approval by the Ganfeng Lithium Board, Chinese Securities Regulatory and Exchange Commission, the TSX Venture Exchange and any required Canadian Regulatory approvals.
"These transactions provide International Lithium with a tremendous opportunity to rapidly advance our assets and specifically propel us to the critical resource delineation stage of our main Mariana Lithium-Potassium brine project in Argentina. The support and confidence Ganfeng Lithium has given ILC is a testament to our success in identifying multiple high quality projects within our portfolio of assets." states Kirill Klip, President, International Lithium Corp.
"These transactions are in line with Ganfeng Lithium's long term goal to secure the raw material supply to meet the potential future demand on Lithium products." States Xiaoshen Wang, VP executive of Ganfeng Lithium.
International Lithium Corp.'s management is looking forward to advancing key projects and expanding the Company's operations to its full capabilities alongside strategic partner Ganfeng Lithium.
About 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, supplies a wide range of lithium products for primary and secondary lithium battery market, pharmaceutical and new material industries. Ganfeng's principal market is in China with international exports to Europe, Japan, USA and India. The company 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 11 years.
About the Blackstairs Project
The Blackstairs project, comprised of eight mineral exploration licences totalling 292 square kilometres, is located 80 km south of Dublin straddling the Counties of Carlow and Wicklow in Leinster, south-east Ireland. The Property encompasses an extensive NE-SW oriented 50 kilometre long rare metals pegmatite belt situated within the East Carlow Deformation Zone along the eastern side of the Leinster Granite. Approximately 19 significant lithium pegmatite occurrences have been discovered within the Property to date primarily as boulder trails with five buried pegmatites known through past trenching and drilling.
Due to the prevalent overburden cover and scarcity of outcrop, prospecting for lithium pegmatite boulders was the most successful exploration method utilised to identify priority target areas. The Aclare House occurrence, situated in the center of the Property was initially discovered through this exploration approach.
A pre-NI43-101 historical resource of 570,000 tonnes grading 1.5% Li2O was reported at Aclare House. (A Qualified Person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.)
Other drilling highlights include 1.85% Li2O over 5.3 metres at Stranakelly and 1.66% Li2O over 9.4 meters at Moylisha.
The observed lithium bearing pegmatites and extensive boulder occurrences within the Property represent a highly prospective and underexplored region. In addition, the recent discovery of a high concentration of pegmatite boulders reporting grades exceeding 4% Li2O at Moylisha only serve to highlight the exploration potential of the Property.
John Harrop, P.Geo, is the Company's Qualified Person on the project as required under NI 43-101 and has reviewed the technical information contained in this press 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 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 and limited assaying for rare metals. All of which imply a clear potential for additional exploration and development as well as added project value 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 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.
Stock Symbol: ILC:TSXV
Shares CUSIP: #459820 10 6
Warrants Symbol: ILC.WT
Warrant CUSIP: #459820 11 4
620 - 650 West Georgia Street
Vancouver, British Columbia
V6B 4N9, Canada
Voice: (604) 687-7551
Fax: (604) 687-4670
SOURCE International Lithium Corp.