International Lithium has issued the news letter covering the latest transactions with its strategic partner Ganfeng Lithium from China.
International Lithium: Ganfeng Lithium Is Halted Pending Major Acquisition ILC.v TNR.v LIT TSLA KNDI
"We are following International Lithium here with its strategic partner from China Ganfeng Lithium. Elon Musk with his Tesla Gigafactory has brought a lot of attention to the Lithium strategic commodity story and Asian companies are coming into the spotlight as well now. LG Chem is talking about building major Lithium battery plant in China and Lithium Materials Industry is getting the green light from the Chinese government in its efforts to curb the horrible pollution.
"Kirill Klip, president of International Lithium (TSXV:ILC), views the announcement of Tesla’s Gigafactory as a “groundbreaking development.”Tesla “brought attention to what Elon Musk has accomplished,” Klip told Lithium Investing News. “He showed to everyone that electric cars are not toys anymore — they are for real.”
International Lithium's Strategic Partner, Ganfeng Lithium, Takes Large Stake in Mariana and a $10 million Option on the Blackstairs Projects ILC.v TNR.v LIT"Mar 19, 2014 (ACCESSWIRE via COMTEX) -- Vancouver, B.C. / ACCESSWIRE / March - 2014 / International Lithium Corp. (the "Company" or "ILC") announces several major transactions with strategic partner GFL International Co., Ltd. ("Ganfeng Lithium" or "GFL")."
WELCOME TO INTERNATIONAL LITHIUM
Although we have no new information to report at this time, we are publishing this Q&A with ILC President, Kirill Klip to address questions we have received pertaining to our latest announcement.
1. What do the latest series of announcements concerning ILC’s strategic partner GFL International mean for the company?
Having a partner that has developed technology to process the raw materials that we aim to produce and has an expanding customer base for their finished products gives ILC security in the market and materials processing side of future feasibility studies. It also gives ILC confidence in moving the projects forward as our partner is actively pursuing vertical integration within their business model. It is becoming increasing important for the lithium product manufacturers to control the quality of feed material in their operations. We expect that our relationship with Ganfeng Lithium will only grow from here on in.
The announcements are testament of the commitment to drive the next stage of growth with Ganfeng Lithium. ILC has successfully secured the means to advance our joint venture projects and continue the exploration on the Blackstairs, Ireland and Mariana, Argentina projects.
Two key agreements have been reached with Ganfeng Lithium:
· GFL has pledged to invest US $10M in the Blackstairs project in order to acquire an additional 24% in the property. (for details see the April 04_2014 news release).
· The companies entered into a loan conversion and investment agreement on the Mariana Lithium brine project (for details see the April 04_2014 news release)
Ganfeng Lithium recently commissioned a new facility in China adding 500mt/y Li metal to its current 1000mt/y Li production capacity. The company exports and produces over 20 specialized lithium products for various applications worldwide. This includes Li metal batteries for which GFL has developed a breakthrough technology that shortens the industry standard production process.
With working capital now available, we can concentrate our efforts on completing the resource definition and economic assessment on our projects.
2. How does this new project ownership structure benefit ILC?
These transactions have allowed us to cancel approximately US $3.3M in loans plus interest indebted to GFL, and most importantly allowed us to maintain shareholder value by advancing our projects without the need for dilutive equity financings at depresse d share prices.
3. What does ILC expect to retain?
We expect the terms to be finalized at 49% ILC/ 51% GFL on Blackstairs and 20% ILC/ 80% GFL on Mariana. In addition to securing the means to advance the exploration on the properties we have also aligned ILC with a company that has the capabilities and technologies to extract and process Lithium into a final user-friendly product that is currently in high demand – in the long run potentially saving us significant additional processing costs and external consulting fees.
4. What are the next steps for the company?
ILC and GFL are now in the budget approval process for the Blackstairs exploration program. Furthermore, we are finalizing our Joint Venture Agreement on the Mariana property after which we will begin the planning process for a follow-up exploration program later in the season.
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.
The Company's primary focus is the Mariana lithium-potash brine project in Argentina within the renowned South American 'Lithium Belt' that is host to the vast majority of global lithium resources, reserves and production. The 160 square kilometre Mariana project strategically encompasses an entire mineral rich evaporite basin that ranks as one of the more prospective salars, or 'salt lakes' in the region.
Complementing the Company's lithium brine projects are rare metals pegmatite properties in Canada and Ireland that have revealed through recent highly positive results a clear potential that the Company will advance with the support of its strategic partner, Ganfeng Lithium. These projects can add distinct value as the Company strives to source rare metals to help meet the increasing demand through the growth in global technologies that utilize the rare metals suite of elements.
With the increasing demand of high tech applications in battery and vehicle propulsion technologies, lithium and other rare metals are no doubt the metals of tomorrow's green tech economy. By positioning itself with solid development partners and projects with significant resource potential, ILC aims to be the green tech resource developer of choice for investors and build value for its shareholders.
International Lithium Corp.'s mission is to find, explore and develop projects that have the potential to become world-class lithium, potash and rare metal deposits.
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 document. Statements in this document 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. This document 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.