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5 January 2022

International Lithium Corp. completes sale of its 49% stake in Mavis Lake project in Ontario, Canada

We are pleased to be able to kick off the New Year with the completion of the Mavis Lake sale, and we congratulate CRR on their good execution at Mavis Lake and their fund-raising. ILC remains deeply committed to Ontario with our claims at our 100% owned Raleigh Lake lithium and rubidium project near Ignace, Ontario now totalling over 47,700 hectares, and we are glad to be able to focus our Canadian efforts on that major project. We retain a further CAD$1.38m of upside in further payments at Mavis Lake if CRR achieves the hoped for results there. Our strong cash and marketable securities position of CAD$ 12.9 m equivalent equips us very well for the next phase of exploration at Raleigh Lake and for other projects under consideration. 

More details at https://internationallithium.com/mavis-lake-sale/

 


16 December 2021

“International Lithium Corp. discovers over 20 new pegmatites, further Expands Raleigh Lake Lithium and Rubidium project in Ontario, Canada”

This was a very encouraging exploration program, with over 20 new pegmatites discovered at ground level over multiple kilometres. A consistent theme is that the Raleigh Lake project is a mineral rich area with appreciable anomalous (i.e. high) amounts of rubidium as well as lithium. This mineral richness and the extent of the pegmatites is why we expanded and expanded again our claims area beyond what we originally intended. 47,000 hectares is the size of the city of Stuttgart, and larger than the cities of Montreal, Denver or Detroit – so clearly this program will require various stages and careful planning. Analysis laboratories are stretched at the moment, and we are still waiting for some of the results, with an equipment failure at one of the third party laboratories holding us up even beyond the expected waiting period. Once we get all these results we will rapidly decide on the optimal drilling program for Raleigh Lake in 2022 with a view to getting some resource estimates in 2022 from a portion of our claims.

More details at https://internationallithium.com/international-lithium-corp-discovers-over-20-new-pegmatites-further-expands-raleigh-lake-lithium-and-rubidium-project-in-ontario-canada/

 


25 October 2021

“International Lithium Corp. Expands Raleigh Lake Lithium and Rubidium project in Ontario, Canada and divests its 49% interest in Mavis Lake Lithium Project, Canada”

We have a strong commitment to growing our position in the lithium and rare metals market, so it is ironic that we are announcing our second disposal in a week – Mavis Lake optioned out, and our stake in Mariana sold. We are however at the same time increasing our claims in Ontario appreciably at  Raleigh Lake and the wider Ignace area where we have now increased the size of our claims to 27,000  hectares. Many new pegmatites have recently been revealed at these claims and we will be doing a lot of further exploration and drilling to validate the scale of our discovery there over the next few months. Focus is important, and we decided that it was better for ILC to concentrate its efforts in Ontario on our key and wholly owned project there Raleigh Lake rather than also paying to regain 100% of Mavis Lake.

More details at https://internationallithium.com/ilc-announces-completion-of-mariana-disposal-for-usd-13-17m-2/

 


20 October 2021

“International Lithium Corp. announces completion of Mariana disposal for USD 13.17m”

“We are of course pleased that this transaction has now successfully completed, and that we have the cash resources to progress our other plans quickly without dependency on funding. ILC is now in by far the strongest financial position that it has been since its listing in 2011, and we look forward to building successfully on that both at our lithium and rubidium project at Raleigh Lake in Ontario and on our other present and future projects. Sincere thanks are due to those shareholders and colleagues who have helped the Company to progress to this point”

More details at https://internationallithium.com/ilc-announces-completion-of-mariana-disposal-for-usd-13-17m/

 


4 October 2021

“International Lithium Corp. End of Quarter Update”

Following the best quarter the company has had for a long time, probably since its founding, here is our quarter end update.

More details at https://internationallithium.com/international-lithium-corp-end-of-quarter-update/

 


21 September 2021

Today is a big landmark for ILC, after we sold our remaining stake in Mariana to Ganfeng.

We are certainly pleased with the price of CAD$ 16.8m equivalent achieved for our share in the Mariana asset, and above all for the potential this gives us for funding our other strategic projects including our lithium and rubidium project at our 100% owned Raleigh Lake project near Ignace, Ontario. We had maiden drilling results at Raleigh Lake earlier this year with very promising results, especially the levels of rubidium oxide, and we have recently significantly expanded our claims there to 170 square kilometres, reflecting our belief in the potential of that project. We will also be looking at other projects. The annual interest saving of CAD 480,000 is also useful.

It has been my goal since becoming CEO of ILC in 2018 to create a company which not only has a clear commercial vision, but which is sufficiently well funded to be able to realise that vision. This transaction puts ILC in the strongest financial position it has been in since its formation, and it is our hope that this is a key milestone for building a very exciting company in the next few years. It is not every day that companies sell a single asset for 80% of their market capitalisation and, given the dynamics of the capital investment that would have been required at Mariana and the workings of our joint venture agreement with Ganfeng, the board and I consider the transaction to be very much in the interests of ILC’s shareholders.

International Lithium Corp. to dispose of its stake in Mariana to Ganfeng for CAD$ 16.8m

We are certainly pleased with the price of CAD$ 16.8m equivalent achieved for our share in the Mariana asset, and above all for the potential this gives us for funding our other strategic projects including our lithium and rubidium project at our 100% owned Raleigh Lake project near Ignace, Ontario. We had maiden drilling results at Raleigh Lake earlier this year with very promising results, especially the levels of rubidium oxide, and we have recently significantly expanded our claims there to 170 square kilometres, reflecting our belief in the potential of that project. We will also be looking at other projects. The annual interest saving of CAD 480,000 is also useful. It has been my goal since becoming CEO of ILC in 2018 to create a company which not only has a clear commercial vision, but which is sufficiently well funded to be able to realise that vision. This transaction puts ILC in the strongest financial position it has been in since its formation, and it is our hope that this is a key milestone for building a very exciting company in the next few years. It is not every day that companies sell a single asset for 80% of their market capitalisation and, given the dynamics of the capital investment required at Mariana and the workings of our joint venture agreement with Ganfeng, the board and I consider the transaction to be very much in the interests of ILC’s shareholders.

More details at https://internationallithium.com/dispose-of-its-stake-in-mariana-to-ganfeng-for-cad-16-8m/

 


23 August 2021

“International Lithium Expands Raleigh Lake Lithium Project Area”

Raleigh Lake is ILC’s major project in North America, and has the great economic benefit relative to many other Canadian lithium projects of being close to major transport infrastructure. Our drilling earlier this year in Zone 1 of the claims (around 5% by area of our new total claims) validated interesting quantities of lithium oxide in the areas we drilled, and commercially very interesting quantities of rubidium oxide. Expanding the area of our claims in the area significantly was a logical move. The money we have raised this year will allow us to make good progress with further exploration and in being able to publish some initial minimum estimates of the size of resource.

More details at https://internationallithium.com/international-lithium-expands-raleigh-lake-lithium-project-area/

 


8 July 2021

“International Lithium Announces Measured + Indicated Resource of 6.85 Million Tonnes LCE at Mariana Lithium Brine Project”

“This Report highlights what we have always known, that Mariana with now over 7.8 million tonnes Measured and Indicated resource of lithium chloride equivalent is a very large deposit indeed. The key question in future years will be how much of this is capable of being processed economically and that in turn will depend critically on what technologies are adopted. For now, making use of solar evaporation which is Ganfeng’s chosen method detailed in the  Report, there is an environmental limit to how much can be extracted without affecting the water levels adversely, and this is why 20,000 tonnes p.a. is the level of environmental approval applied for. It can be hoped that membrane technology or other technologies become suitable technology at Mariana in future years, and that this number can be improved on over time.

I mentioned in my Chairman’s Report for the last financials that the board was evaluating its strategic options for the Mariana project. I can now disclose that the board believes that it would be in the best interests of its shareholders to sell its stake in the Mariana project before the Project goes to the next stage of requiring appreciable capital investment. We are conducting a process of talking with possible acquirers of our stake in Mariana, including Ganfeng the majority partner. Shareholders are cautioned that, as with any such discussions, no assurance is possible that the stake will be sold at a price that would reflect the board’s view of the economic potential of the salar as a major lithium resource with valuable byproducts such as potassium. Should a suitable price not be agreed, the Company would still enjoy the benefit of a 1% Net Smelter Royalty from Ganfeng on all production from Mariana”

More details at https://internationallithium.com/international-lithium-announces-measured-indicated-resource-of-6-85-million-tonnes-lce-at-mariana-lithium-brine-project/

 


1 June 2021

“International Lithium Corp. Drilling Returns 2.69% Lithium Oxide (11,900ppm), 4210ppm Rubidium and 997ppm Caesium at Raleigh Lake Lithium Project, Ontario, Canada”

“The results from the chemical analysis of drilling results at Raleigh Lake Zone 1 are very encouraging indeed, and significantly exceed our expectations at the time of our previous news release on April 19, 2021.

The lithium results from Zone 1 of Raleigh Lake that come out of the chemical analysis remain encouraging and in line with expectations. We still need to do more work to get to a Maiden Resource Estimate, but it now seems likely that the grade of lithium oxide is as high as or higher than that of some other hard rock lithium deposits in Canada where there has been a decision to go to production. Since our infrastructure costs are certain to be low compared with more remote sites in Canada, this is promising.

The really significant news from these results however is not the lithium but rather the high level of rubidium found at Raleigh Lake together with a lower but still possibly valuable level of caesium. Rubidium in this analysis totals approximately 52% of the ppm of lithium while caesium oxide totals approximately 7.2% of the ppm for lithium. However, the Company notes that the market price of high-quality rubidium carbonate per kg is 76 times the market price of lithium carbonate while that of high quality rubidium and caesium metal is more than 1000 times the market price of lithium metal (Table 3), so these discoveries are far more than useful by-products. It will take time to analyze fully the economic value of the rubidium and caesium to the Company, especially the cost of getting to a high level of purity of rubidium and caesium oxide and how we would do this, but at first sight, this looks like an extraordinarily promising result. 

Table 3: Comparative prices of Lithium, Rubidium and Caesium. Source: SMM (https://www.metal.com/), May 24, 2021.

Product

Price (USD)

Price Ratio to Lithium Carbonate

Lithium Metal (Li≥99%)

$97,331/tonne ($97/kg)

 

Lithium Carbonate (99.5% Battery Grade)

$13,971/tonne ($13.97/kg)

1

Caesium (Cs≥99.5%)

$109.89/g ($109,890/kg)

 

Caesium Carbonate(Cs2CO3≥99%)

$133.44/kg

9.55

Rubidium (Rb≥99.5%)

$125.60/g ($125,600/kg)

 

Rubidium Carbonate (Rb2CO3≥99%)

$1,059.65/kg

75.9

As well as a commercial analysis of the results so far, the Company plans to conduct more drilling at Raleigh Lake in the summer in Zone 1 and in the other Zones 2-5. We plan to raise further funds to ensure swift execution on this.”

More details at https://internationallithium.com/ilc-finds-significant-rubidium-at-raleigh-lake-lithium-project/

 


13 May 2021

“CHAIRMAN’S REPORT FOR THE QUARTER ENDED MARCH 31, 2021”

This quarter was a significant one for moving the company forward.

Following a restructuring at the beginning of 2021 to place most of our debts onto an over one-year basis, and a small equity fundraising of CAD 0.2 million, we completed a successful CAD 3 million equity fundraising in February 2021. This was increased from an initial CAD 2 million and even then was oversubscribed in an unusual period in which our share price trebled in six weeks along with much demand for stock in other lithium companies. The board did not have the choice of raising more than CAD 3 million in the fundraising as the TSXV has to approve such increases and it made clear that it would not approve further increases.

The restructuring, the fundraisings, and the subsequent conversion of CAD 0.14 million of convertible debentures allowed the Company to strengthen its balance sheet as well as fund the maiden drilling at our 100% owned and royalty-free Raleigh Lake project in Ontario which achieved pleasing initial results. An announcement on Raleigh Lake was made on 19 April 2021, and further announcements will be made at the appropriate time once we have relevant information.

The Mariana project in Argentina, in which the Company now owns 10.194%, is expected to reach the feasibility study stage by the end of May 2021. As earlier mentioned this will unfortunately not be to NI 43-101 standards, but only to standards acceptable to our partner Ganfeng, and this means that there will be regulatory restrictions on what we are allowed to announce. The Company will at that time have 120 days in which to exercise its 10% back in right. The cost of doing so is governed by a formula linked to historic expenditures on the project and would currently be about CAD 9 million unless a higher level of expenditure is set and incurred by Ganfeng in the next few months in a manner that disrupts this process. We are looking at our strategic options around this property.

In parallel with the main activity at our 100% owned Raleigh Lake project, there is some progress with the 45% owned Avalonia project in Ireland with additional drilling underway financed by Ganfeng as part of its earn-in. There is nothing to report on the 49% owned Mavis Lake in Ontario, our joint venture with Essential Metals. We are also looking at other possible future development sites.

We will be raising further amounts of funding in the next year, but at present, this looks like being in a significantly more benign funding climate than that which prevailed in 2018-2020. Additionally, the Company is in a much stronger position than a year ago.

I would like to thank all my colleagues and our advisors for their contribution, and also all the directors for their financial support for our loan stock and equity issues. I would also like to welcome all our new shareholders who came on board in the past few months, including from the United States and from Europe.

John Wisbey
Chairman

 


April 30, 2021

“Chairman’s Report for the Year Ended December 31, 2020”

This statement covers not only 2020 but also the first four months of 2021. The distinction between the two this year is considerable.

Following a restructuring at the beginning of 2021 to place most of our debts onto an over one-year basis, and a small equity fundraising of CAD 0.2 million, we completed a successful CAD 3 million equity fundraising in February 2021. This was increased from an initial CAD 2 million and even then was oversubscribed in an unusual period in which our share price trebled in six weeks along with much demand for stock in other lithium companies. The board did not have the choice of raising more than CAD 3 million in the fundraising as the TSXV has to approve such increases and it made clear that it would not approve further increases.

The restructuring, the fundraisings, and the subsequent conversion of CAD 0.14 million of convertible debentures allowed the Company to strengthen its balance sheet as well as fund the maiden drilling at our 100% owned and royalty-free Raleigh Lake project in Ontario which achieved pleasing initial results. An announcement on Raleigh Lake was made on 19 April 2021, and further announcements will be made at the appropriate time once we have relevant information.

The Mariana project in Argentina, in which the Company now owns 10.194%, is expected to reach the feasibility study stage by the end of May 2021. As earlier mentioned this will unfortunately not be to NI 43-101 standards, but only to standards acceptable to our partner Ganfeng, and this means that there will be regulatory restrictions on what we are allowed to announce. The Company will at that time have 120 days in which to exercise its 10% back in right. The cost of doing so is governed by a formula linked to historic expenditures on the project and would be about CAD 9 million. We are looking at our strategic options around this property.

In parallel with the main activity at our 100% owned Raleigh Lake project, there is some progress with the 45% owned Avalonia project in Ireland with additional drilling underway financed by Ganfeng as part of its earn-in. There is nothing to report on the 49% owned Mavis Lake in Ontario, our joint venture with Essential Metals. We are also looking at a number of possible future development sites.

We will be raising further amounts of funding in the next year, but at present, this looks like being in a far more benign funding climate than that which prevailed in 2018-2020. Additionally, the Company is in a much stronger position than a year ago.

I would like to thank all my colleagues and our advisors for their contribution, and also all the directors for their financial support for our loan stock and equity issues. I would also like to welcome all our new shareholders who came on board in the past few months, including from the United States and from Europe.

John Wisbey
Chairman

 


April 19th, 2021

International Lithium Corp. Completes Maiden Drilling Program at Raleigh Lake Lithium Project, Ontario, Canada

“This was an encouraging drilling program for ILC with what appear to be good and solid results in Raleigh Lake Zone 1 that build significantly on our confidence of the project’s potential. If the chemical analysis received over the next few weeks is favourable, that may well be sufficient to warrant follow-up with some preliminary economic analyses prior to further drilling in Zone 1. The board also believes that investment in further drilling in Zones 2 to 5 is highly warranted and remains hopeful, based on earlier geological analysis, that it could deliver even greater potential than we are defining at Zone 1.”

More details at https://internationallithium.com/completes-maiden-drilling-program-at-raleigh-lake-lithium-project/

 


March 8, 2021

“Update on 2021 Year to date”

This has been a great year so far for ILC, helped by the strong market for lithium and for lithium stocks. We started by restructuring our debts to put most of them onto an over one year basis. Then we had equity fundraising that was oversubscribed and raised around CAD $ 3.2m. Then we raised a further CAD $ 0.5m of equity through the exercise of options and warrants. Now we are about to start the next phase of drilling at Raleigh Lake in Ontario, Canada for which we now have sufficient funds to produce a Maiden Resource Estimate in the middle of 2021. Lithium stocks have risen sharply this year although are well off their peaks in mid February. But the great news is that we have a much stronger balance sheet than at year end and we have the funding to be able to execute the next stage of our plans at Raleigh Lake. There is much to do in the rest of the year, but this is a very good start.

 


April 30, 2020

“Update on ILC following 2019 full year results”

Here is my Chairman’s Statement released with our results on April 30, 2020. It reflects the Board’s view of our current strategy, and is worth a read to know what ILC is currently about.

The last year has been a year of good progress for International Lithium Corp. (the “Company” or “ILC”). In February 2020, based on results as at August 2019, we were able to announce a 253% increase in the Measured and Indicated Resource at our Mariana joint venture in Salta, Argentina with Ganfeng Lithium. With Measured and Indicated Resource of 4,410,000 tonnes of Lithium Carbonate Equivalent, this makes Mariana one of the biggest lithium salar resources in the world. We also conducted a magnetic aerial drone survey at our Raleigh Lake property in Ontario, Canada which was promising and in line with what we were hoping to see.

Our 2020 focus is on drilling at Raleigh Lake in Ontario with the goal of producing a maiden resource estimate, and for Mariana in Argentina on issues around the goal of the managers completing a feasibility study and obtaining the grant of an exploitation permit. We plan to raise funds for the Raleigh Lake drilling in 2020 and to exercise our 10% back in right at Mariana in 2021. In parallel with that we will be examining our strategic options at Mariana.

Following the 253% rise in Measured and Indicated Resource at Mariana (as reported on February 6, 2020), it would be reasonable to assume that the Company’s board is looking forward to receiving the new feasibility study for Mariana later this year or early in 2021, with the proviso that the economics of solvent extraction (as opposed to the previous process of shipping concentrated brine to China) have not yet been fully analyzed. The economics of the 2018 Preliminary Economic Assessment, which is the only economic study released so far on Mariana, were based on the lower Resource Estimates delivered in 2017. We have however already warned the market that it is possible that a feasibility study for Mariana may not be produced by the managers Ganfeng Lithium to NI 43-101 standards; if that is the case, it is a possible or even likely scenario that we will not be allowed to announce the results of a feasibility study publicly under Canadian securities laws even though the Company’s board, our joint venture partner Ganfeng Lithium, and other parties will be relying on the results for decision making.

We continued to raise new money in 2019 and early 2020, and in addition the Company had to raise funds to refinance some maturing convertibles. In early 2020 we started to feel that the capital market for mining companies and in particular lithium companies was improving after a very difficult funding climate in 2018 and 2019. Since the middle of February 2020, the COVID-19 pandemic has affected all markets, and it is now clear that GDP in major economies will take a huge hit in 2020. It is too early to be sure how or whether that will affect fundraising for ourselves and for that matter our joint venture partners. Investment monies have to be invested in something, and we take great comfort from the fact that Lithium is increasingly well understood by investors as a key component of batteries for electric vehicles and electric battery storage, and as an important contributor to a greener and cleaner world. We do therefore remain optimistic that the medium-term story is not much affected by present events.

It is our wish to broaden the Company’s investor base and to obtain institutional backing that will allow the Company to break out to the next level.

I would like to thank all our staff for their contribution during the year as well as our advisors, and our shareholders for their support.

John Wisbey
Chairman

 


February 6, 2020

“Update on Mariana announcement”

The resource announcement about Mariana in Salta, Argentina having 4.41 million tonnes of Measured and Indicated resource really is tremendous news. It is not often one is able to announce a 253% resource increase. This is now a very large resource.

We now proceed to further analysis of using solvent extraction on site and expect a further economic analysis or feasibility study by the end of the year. The only frustration on our part is that neither China nor Argentina care greatly about Canadian NI 43-101 rules and so even if the results are stellar we may not be able to announce them when we know them. If they are good it would be the mining equivalent of not being able to put your proudest career achievement on your CV – really crazy when you need to put your best foot forward to raise money on good terms in a competitive environment. The Canadian mining industry is still having to pay a heavy regulatory price for the dishonesties of certain companies in the past, and an economic price too because if international competitors can announce something which a Canadian company can’t it isn’t surprising if the international company gets a higher rating. Anyway this situation is still several months away, so I hope the concern will be academic.

 


April 30, 2019

“Update on ILC following 2018 full year results”

Here is my Chairman’s Statement released with our results on April 30, 2019.

Summary

INTERNATIONAL LITHIUM CORP. CHAIRMAN’S REPORT FOR YEAR ENDED DECEMBER 31, 2018

2018 was a year of considerable progress for International Lithium Corp. (the “Company” or “ILC”), and this has continued into 2019. When I became Chairman and CEO in March 2018, my priorities and those of the Board were to stabilize our finances, rebuild trust with our partners, take a strategic review of our mineral holdings, and uncouple ourselves from the former parent company TNR Gold Corp. Significant progress was made in 2018 and early 2019 with all these objectives.


Financial

Our biggest concern in March 2018 was stabilizing our finances given the expected CAD $3.7m of payments due for the Mariana project in 2018, a creditor backlog, and convertibles to repay as well as our overheads. These issues were all successfully dealt with, and we have now raised around CAD $5.0m in equity or convertible funding over the last year despite late 2018 being what has been described as the toughest funding climate for mining companies in many years, if not for a generation. This is 50% more than the company has raised in any previous year, including on IPO.

The overall financial dynamic of the Company is that it has interests in some potentially very valuable lithium producing properties, both hard rock (in Canada and Ireland) and brine (in Argentina). The properties we regard as the most strategic are Raleigh Lake in Ontario, Canada and Mariana in Argentina. These properties are not yet in production and therefore are not yet revenue earning, so consequently the company will continue to need to raise money until either a property goes into production, or until one or more of the properties are sold. It is consequently important that we stay ahead of the funding curve. To that end we are currently fundraising for a further CAD $1.0m of traditional equity finance, having closed CAD $1.88m of equity finance in February to early April 2019, and also having extended the maturity date of CAD $2.34m of our convertibles by a year to June 30, 2020.


Mining

On the mining front, we made progress with four of our five mining properties, and we ended the year with a clear strategy. A brief summary is as follows:

  1. Mariana, Argentina – we kept up with our committed budget contributions in 2018. We had a share of 17.246% in the project with a back in right of 10%, taking us up to a total of 27.246%. The project ended up well under its budget of USD $17m, and we paid a total of CAD $1.71m. During the year a Preliminary Economic Assessment was produced, showing an estimated value for the project of USD $192m, based on assumptions of a mine life of 25 years, and annual production of 10,000 tonnes of Lithium Carbonate equivalent and 80,000 tonnes equivalent of Sulphate of Potash. Clearly this was the consultant’s valuation rather than ours, and is subject to numerous assumptions, but it is an encouraging number. Highlighting the risks however, the financing requirement for the project was estimated at USD $243m, with our pro rata share 17.246% or 27.246% of that number.For the first 6 months of 2019, in which Ganfeng decided to propose a budget of USD $10m, we decided to take a break from contributions so that we could focus on the Raleigh Lake property. Based on calls to date our share in Mariana by end April 2019 will be 15.392%; should further calls be made in May and June 2019 equal to the whole of the budget, our not contributing to Mariana will mean our share reducing to 13.607%, with our back in right taking us back up to a total of 23.607%.
  2. Raleigh Lake, Ontario – During 2018 we reacquired all our rights to this project without any encumbrances, and we proceeded to increase the size of our claim by a factor of over 3. We now have 3,027 hectares of claims there. We have looked at historical drilling results when a previous operator looking for tantalum found a lot of lithium and some rubidium and caesium, and we have also talked to geologists who were involved in the project at an earlier time. This all makes us very hopeful of the potential of this site, and we will be making aerial drone surveys and drilling of 20 or more holes there in the next few months our top priority.
  3. Mavis Lake, Ontario – As part of a deal with our partner Pioneer Resources, Pioneer acquired 51% of Mavis Lake under an earn-in. We are not expecting a lot of activity there in 2019, as both we and Pioneer are focused on other projects.
  4. Avalonia, Ireland – Our partner Ganfeng continued to finance a drilling program at Avalonia, and we made an update to the market on April 12, 2019. We will not need to contribute to the financing of this project for few years.
  5. Forgan Lake, Ontario – we concluded a deal in September 2018 with Ultra Lithium whereby, subject to contracted progress payments and a minimum expenditure of CAD $500,000, they will acquire 100% of the property over 2 years, with our receiving a royalty of 1.5% on this and a neighbouring property.


Partners

On the partner front, we restored our good relations with both Ganfeng Lithium and with Pioneer Resources. Both are shareholders in our Company and we are also a small shareholder in Pioneer Resources. We were able to conclude a transaction for the Mavis Lake and Raleigh Lake properties with Pioneer in the summer to mutual benefit. As Ganfeng’s minority partner on both Mariana and Avalonia, we are to a large extent dependent on their intentions for these projects.

Relationship with former parent TNR Gold Corp. (“TNR”)

We have now almost entirely uncoupled our relationship with TNR. We started 2018 with TNR owning 8.2m shares in the Company and CAD $700,000 of a convertible issued by the Company, a position reduced from 100% pre-IPO and around 20% in early 2016 when TNR owned 18m shares in the Company. In addition, at the beginning of 2018 there were four common directors between ILC and TNR, a position no longer appropriate given TNR’s reduced shareholding in the Company. During the year we reduced the number of common directors to zero through myself resigning from the board of TNR in January 2018, Kirill Klip resigning from the board of the Company in November 2018, and Maurice Brooks and Ross Thompson not standing for re-election to the board of TNR at its November 2018 AGM; this has continued in 2019 with ILC director Anthony Kovacs resigning his management role at TNR in April 2019. In the second half of 2018 we moved to new offices, leaving TNR at what had previously been our office space shared with them. Additionally, by the end of 2018, TNR had sold its holding in the Company down to 2.7m shares, selling 5.5m shares during the year. Following our repayment of the CAD $700,000 convertible to TNR in February 2019, and our own issue of shares and convertible debentures to enable that repayment, TNR’s shareholding or share interest in the Company’s shares is now under 2% of the Company. We are grateful to TNR for its support over the years, and more recently we were also pleased to have helped TNR in that TNR’s sale of ILC shares and recently ILC’s convertible debenture repayment to TNR has provided most of TNR’s liquidity in the last two years. However, the Board and our main shareholders are also very pleased that this significant source of downward pressure on our share price, and drain on our own liquidity, has now largely been removed.

Personnel

In December we welcomed Anthony Kovacs, our COO, to the board. This was well deserved after several years of valuable contribution to the Company, and his major contribution to the decisions on our properties in 2018. We also welcomed Nick Davies to our board as a Non-executive Director.

Outlook and our plans for 2019

There are many international uncertainties at a macroeconomic level at present including trade wars, European parliamentary elections, U.S. Government shutdown and Brexit. These could all create stock market uncertainty and make funding harder. The asset allocation of risk capital away from mining to cannabis and blockchain technologies will presumably reverse itself at some stage, but this may take some time. We remain convinced however that, with the relentless growth in demand for electric vehicles and electric battery storage, we are set for years if not decades of strong compound growth in demand for batteries. Lithium is a key component of battery technologies, and the demand for batteries will be good for the lithium industry as a whole. Lithium has been described as “the new oil” and we believe the Company is in the right place at the right time.

One of the most important decisions a Board has to make is about the allocation of capital, and at this point we feel that if we are successful in proving the scale of the Raleigh Lake deposit, the investment in that project is likely to bring a bigger gain to shareholder value than investment in any of our other projects. Our key priority for the next few months, and also the first use of new funds as well as working capital, is to conduct enough drilling and magnetic drone survey work at our Raleigh Lake lithium deposit in Ontario, Canada to validate the size of this deposit. If this drilling is successful and delivers on what we are looking for, then our corporate story will be very much stronger and of course the hope is that this will allow the Company to benefit from a significant re-rating. We continue to have confidence in the Mariana project following a successful preliminary economic assessment (PEA) in December 2018. Our partner Ganfeng Lithium has in April 2019 announced publicly that the pre-feasibility and feasibility study of the Mariana Project are expected to complete in 2019, and we will be liaising closely with them on the detail of this over the next few months. Following the results from Raleigh Lake, we will then map out our strategic options for Mariana, Raleigh Lake and other projects, hopefully from a position of strength.

It is our wish to broaden the Company’s investor base and to obtain institutional backing that will allow the Company to break out to the next level.

I would like to thank all our staff for their contribution during the year as well as our advisors, and our shareholders for their support.

John Wisbey
Chairman

 


16 July 2018

“Turning Strategy into Reality”

Company stabilised

I recently completed my first 100 days in the job at ILC. Since I became CEO we have raised almost CAD$3m of finance for ILC, almost as much as the firm raised on its IPO in 2011. We have achieved for now my short term goal of getting the company ahead of the funding curve. But it is only the first step.

For some time to come ILC, as a junior mining company, will need to continue to raise equity to keep up with its project financing needs as well as normal operating expenditure. The lithium industry is in an interesting period with almost every company either needing to raise finance or interested in raising money from non core projects to reinvest in its core projects. That gives rise to interesting opportunities, and emphasizes the need to be well funded so that ILC can make its decisions based on good economics rather than on cash flow management. So I am going to be busy with meeting investors in multiple countries, especially in North America and Europe.

I had a very interesting day last week looking at our Irish joint venture’s drilling project in Moylisha, part of the Avalonia concession. The team are doing an excellent job, trying to find seams of pegmatite with spodumene. A fascinating geology lesson I received is that this part of Ireland was once joined up with North America 400 million years ago before the Atlantic Ocean opened up, and that consequently the geology is very similar to that in parts of North Carolina. This is hopefully a promising comparison !

We will be moving to new better offices in Vancouver shortly, and this is another step forward to rebuilding a successful company.

 


30 March 2018

I accepted the role of Chairman and CEO of ILC on 14 March 2018 at a challenging time. The company under its previous leadership had not taken the funding actions required to fund a significant stake in a major project, let alone in future years several projects. As a result we were behind with our payables on almost every front. The asset backing of the company was great but our liquidity was not. Too much time had been spent on the company’s social media presence, and too little time on some of the basics, the most obvious omission being staying ahead of our funding needs.

We have some wonderful mining assets, Mariana in Argentina owned 17.24% by ILC and 82.76% by Ganfeng Lithium being the most important one. Moreover that stake can be increased to 27.24% in the future at our option on paying a share of project costs.

A company that is in development mode is by definition in fundraising mode, and this will be our priority for the next few months. Having stabilized the finances, we need to strengthen them to be well ahead of our funding needs. We will also improve our infrastructure at the same time. Without sound finances, a good mission statement or corporate strategy is a dream, and it is my and the board’s wish to turn more of the strategy into reality.

Companies have different stages, and a lot has been done by those who have built the company to where it is now since before it went public in 2011. This includes on founding Gary Schellenberg, Executive Co-Chairman and CEO from inception until January 2017, Mike Sieb, President in the early days, Jerry Bella, CFO until January 2017 and Kirill Klip. Kirill was initially Non-Executive Co-Chairman, then also President from March 2012, and then Chairman, CEO and President from January 2017 to March 2018. Of course several others worked hard alongside all of them including our COO Anthony Kovacs. We are grateful to all of them, and it is important to recognise all their achievements and contributions. Those in the team involved in identifying the major lithium assets also deserve special recognition, as do those creating our key partnerships with Ganfeng Lithium and Pioneer Resources. The assets, the partnerships and the people are the key assets of the company.

Every well run company is a bit of an orchestra. Just as an orchestra with only pianists would be somewhat deficient, so equally a company like ILC with only geologists or only financial people would not be optimal. The skills that I bring to the job, other than public company and commercial skills, will include being rigorous about financial analysis of projects and contingent cashflows, and experience of capital markets. Great geologists for identifying projects, and then great financial analysis around those projects and funding of them are, in my view, a good combination which is likely to lead to success in this industry.

I do believe the company can have a very exciting and successful future which is why I have agreed to take on the current challenges having invested a lot of my own money into the company. My priority now is to find others who believe in the goals we have set and who share my personal view of the potential opportunity in the investment.

John Wisbey
CEO

www.internationallithium.com

 


 

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Cautionary Statement Regarding Forward-Looking Information

Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information or forward-looking statements in this news release include: the timing and anticipated results of environmental impact studies and pump tests, timing of preliminary economic studies on the Mariana project, the expectation of feasibility studies, lithium recoveries, modeling of capital and operating costs, results of studies utilizing membrane technology, and continued agreement between the Company and Jiangxi Ganfeng Lithium Co. Ltd. regarding the Company’s percentage interest in the Mariana project. Such forward-looking information is based on a number of assumptions and subject to a variety of risks and uncertainties, including but not limited to those discussed in the sections entitled “Risks” and “Forward-Looking Statements” in the interim and annual Management’s Discussion and Analysis which are available at www.sedar.com. While management believes that the assumptions made are reasonable, there can be no assurance that forward-looking statements will prove to be accurate. Should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. Forward-looking information herein, and all subsequent written and oral forward-looking information are based on expectations, estimates and opinions of management on the dates they are made that, while considered reasonable by the Company as of the time of such statements, are subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect and are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.

 

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