Vancouver, B.C. October 20, 2015, International Lithium Corp. (the “Company” or “ILC”) (TSX VENTURE:ILC.V) is pleased to announce that further to the Company’s press releases dated November 28, 2012, July 31, 2013 and March 19, 2014 announcing the original loan agreement and amendments (“Loan”) with strategic partner GFL International Co., Ltd (“Ganfeng Lithium” or “GFL”), ILC and GFL have amended the Loan to extinguish and replace the repayment terms of the original Loan. The latest agreement settles repayment provisions of the Loan principal and accrued interest totaling CDN$1,168,841 indebted to GFL. In return ILC grants GFL an additional 4% interest in the Avalonia project for extinguishing CDN$126,000 of the Loan and adds the balance of CDN$1,042,841 (US$798,500) to the Mariana exploration loan (“Exploration loan”), which was announced in the Company’s press release dated March 19, 2014.
The resultant ownership of the Avalonia project will be 55% GFL and 45% ILC until the CDN$10 million expenditures required to be incurred by GFL are reached or a positive feasibility study is produced for the project, at which time the ownership will be 79% GFL and 21% ILC. The Company and GFL have finalized the terms of the Exploration loan, under which GFL will make available to ILC a loan up to US$2,000,000 to cover a portion of, or the entirety of, ILC’s required contribution to the Mariana joint venture (“Joint Venture”). The Exploration loan carries an annual interest rate of 10% and is repayable from ILC’s share of Proceeds or Net Smelter Royalty payments derived from the Joint Venture. No interest is payable until such time as Proceeds or Net Smelter Royalty payments are derived from the Joint Venture. If no Proceeds or Net Smelter Royalty payments are derived from the Joint Venture the Exploration loan, including accrued interest, shall be due and payable by March 14, 2024.
Mr. Kirill Klip, President, International Lithium Corp. comments, “The restructuring of our loan facilities with strategic partner Ganfeng Lithium provides ILC with financial relief and access to capital through the long term Exploration loan. In Argentina, all political candidates running in the upcoming elections are echoing the importance of mining and foreign investment to that country, something I view as very positive for our Mariana project. In Europe there is a growing concern that emissions standards are not being met with the clean diesel scandal paving the way for electric cars powered by lithium batteries. This gives our Avalonia project in Ireland strategic importance. Together with Ganfeng Lithium we continue to work towards supplying lithium as a raw material for clean power technologies in Europe and around the world.”
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 Ganfeng Lithium Co. Ltd., a leading China based lithium product manufacturer.
The Company’s primary focus is the Mariana lithium-potash brine project, within the renowned South American “Lithium Belt” that is the host to the vast majority of global lithium resources, reserves and production. The 160 square kilometre Mariana project strategically encompasses an entire mineral rich evaporate basin that ranks as one of the more prospective salars or ‘salt lakes” in the region.
Complementing the Company’s lithium brine project are rare metals pegmatite properties in Canada (Mavis project) and Ireland (Avalonia project). These projects reported highly encouraging lithium mineralization in drill holes targeting pegmatites that are unexposed at surface (news releases dated April 3, 2013 and June 25, 2013).
With the increasing demand for high tech rechargeable batteries used in vehicle propulsion technologies and portable electronics, lithium is paramount to tomorrow’s “green-tech” economy. By positioning itself with solid development partners and acquiring high quality grass roots projects at an early stage of exploration, ILC aims to be the green tech resource explorer of choice for investors and build value for its shareholders.
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.