Vancouver B.C.: International Lithium Corp. ("ILC" or the "Company") is pleased to announce the Company has entered into an option agreement dated December 21, 2011 (the "Agreement") with Metron Capital Corp. ("Metron"), a capital pool company ("CPC"), on the Company's 100% owned Forgan Lake property ("Property") located 125km northeast of Thunder Bay, Ontario.
Transaction Key Point Summary:
Property Key Point Summary:
- Metron can acquire an undivided 60% interest in the Property;
- By incurring a total of $1,000,000 in exploration expenditures on the Property over four years;
- By making cash payments to ILC totalling $300,000 by the third year anniversary; and
- By providing share issuances to ILC totalling 600,000 shares by the third year anniversary.
Proposed Joint Venture Transaction
- 6 pegmatite dikes identified through exploration carried out by Lun-Echo Gold Mines in the 1950s;
- 4.23% Li2O over 7.5m in channel sample reported by Lun-Echo at Pegmatite No. 1;
- 2.57% Li2O over 4m in channel sample reported by ILC at Pegmatite No. 1;
- Soil geochemistry reveals highly anomalous values in areas without previously identified targets; and
- Project is drill ready.
Under the terms of the Agreement, Metron can acquire an undivided 60% interest in the Property by incurring a total of $1,000,000 in exploration expenditures on the Property as follows: a minimum $350,000 in expenditures on the Property to be incurred by the first year following the date of execution of the Agreement, a minimum $200,000 in expenditures by the second year, a minimum $250,000 in expenditures by the third year, and a minimum $200,000 in expenditures by the fourth year. In addition, Metron must make $300,000 in aggregate cash payments to ILC of $25,000 on the date of Exchange acceptance ("Exchange Acceptance") of the Agreement, $50,000 on the anniversary of the first year following the date of execution of the Agreement, $75,000 on the second year and $150,000 on the third year as well as issue 600,000 shares of Metron in aggregate issuances to ILC of 50,000 shares on Exchange Acceptance, 100,000 shares by the anniversary of the first year following the date of execution of the Agreement, 150,000 shares by the second year following the date of execution of the Agreement and 300,000 shares by the third year following the date of execution of the Agreement.
Completion of any and all transactions contemplated by the Agreement is subject to, among other things, acceptance by the Exchange and all other necessary regulatory approvals.
Forgan Lake Property
The Forgan Lake Property, comprised of one 232 hectare claim block (16 units), is located 125 km northeast of Thunder Bay, Ontario. The Property is host to six known rare-metal pegmatites and is part of the Georgia Lake Pegmatite Field (GPF), an area witness to considerable lithium and other rare-metals exploration since its discovery in the mid-1950s. Of the six previously identified pegmatites, four known as the No. 1, No. 2, No.3 and No. 4 pegmatite, were explored on surface and subsequently drilled in 1955 by Lun-Echo. Channel sample results reported by Lun-Echo include: 2.57% Li2O over 6.4 metres, 4.23% Li2O over 7.5 metres and 1.98% Li2O over 7.6 metres from the No. 1 Pegmatite.
Recent exploration on the Property performed by the previous operator in 2009 and 2010 entailed the collection of 137 channel and grab samples from pegmatite surface exposures and 900 soil samples covering 27.7 kilometres of grid.
The channel samples confirmed grades and widths comparable to the ones reported by Lun Echo with significant values reported in five of the six known pegmatite bodies. The soil samples delineated anomalous patterns of beryllium, cesium, lithium, tantalum and tin with several highly anomalous zones located in areas of previously unidentified pegmatites (TNR Gold Corp., ILC's parent company through a plan of arrangement, news releases dated Oct. 5, 2009 and Jan. 18, 2011).
The primary objectives for the next proposed phase of exploration is to perform a preliminary drill program to confirm the historic lithium grades at depth, determine the rare metal potential and test the new targets identified on 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 international rare metals mineral exploration company with an outstanding portfolio of projects, strong management ownership, robust financial support and a strategic partner, Jiangxi Ganfeng Lithium Co. Ltd., a leading China based lithium product manufacturer, as a keystone investor.
ILC currently has 9 active rare metals projects, well balanced between lithium brines in Argentina and Nevada and hard-rock pegmatites in Canada and Ireland. The Company's primary focus is the Mariana lithium 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 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.