United Lithium Corp. (CSE: ULTH; OTC: ULTHF; FWB: 0UL) (the “Company”), is pleased to announce, further to its news release dated February 11, 2021, that it has completed the acquisition (the “Acquisition”) from Leading Edge Materials Corp. (“Leading Edge”) of 100% of the issued and outstanding share capital of Bergby Lithium AB (“Bergby”), which holds a 100% interest in and to the mining licenses comprising the Bergby Lithium project (the “Project”), located in central Sweden, 25km north of Gavle.
As consideration for the Acquisition, the Company has: (a) paid CAD$250,000 in cash; (b) issued 1,031,864 common shares in the capital of ULTH (each, a “ULTH Share”); (c) issued 400,000 common share purchase warrants (the “Warrants”), with each Warrant entitling the holder thereof to acquire, for a period of 36 months from the Closing Date, one ULTH Share at an exercise price equal to approximately CAD$0.485; and (d) granted a 2% net smelter returns royalty on the Project, which is subject to a buyback right in favour of ULTH, exercisable for CAD$1,000,000.
The ULTH Shares will be escrowed and released over a 20-month period. The Company shall also pay an additional CAD$250,000 in cash on October 29, 2021.
In addition to the foregoing, the Company has committed to exercise reasonable commercial efforts toward spending CAD$1,000,000 on exploration work on the Project prior to October 29, 2022, and Leading Edge will, at its cost, make available to the Company the part-time services of its Chief Geologist to provide geological support in exploring the Project until April 29, 2022.
On Behalf of The Board of Directors
Chief Executive Officer
Forward-Looking Statements Caution. This news release contains “forward-looking information” within the meaning of applicable securities laws relating to statements regarding the Company’s business, products and future of the Company’s business, its product offerings and plans for marketing. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance and developments to differ materially from those contemplated by these statements. Except as required by law, the Company expressly disclaims any obligation and does not intend to update any forward-looking statements or forward- looking information in this news release. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct and makes no reference to profitability based on sales reported. The statements in this news release are made as of the date of this release.