Ultra Lithium Inc.

Ultra Lithium Inc.

July 12, 2012 12:22 ET

Ultra Lithium Completes First Tranche of Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 12, 2012) - Ultra Lithium (TSX VENTURE:ULI) ("the Company" or "Ultra") is pleased to announce that it has closed the first tranche of its previously announced private placement with Beijing Guofang Mining Investment Co., Ltd., ("BGMI"). The Company issued 10,000,000 units to BGMI at a price of $0.05 per unit for gross proceeds of $500,000.00. Each unit consists of one common share of the Company and one common share purchase warrant ("Warrant"), with each warrant entitling BGMI to acquire one additional common share of the Company at $0.10 per share at any time until July 9, 2014. The securities issued under the private placement are subject to a four month hold period expiring November 10, 2012.

In the second tranche, BGMI and associates will subscribe an additional 10,000,000 Units at a price of $0.05 per unit for gross proceeds of $500,000.00. Upon completion of the second tranche, BGMI will become an insider of the Company and will hold 10.47% of the issued and outstanding common shares of the Company on an undiluted basis, and up to 17.84% of the common shares of a fully diluted basis.

A finder's fee of $40,000 is payable on this tranche of the private placement.

On April 18, 2012, the Company and BGMI entered into a Framework Agreement pursuant to which BGMI and its associates agreed to invest $1,000,000 in units of the Company. BGMI also agreed to fund up to CAD$3,500,000 of approved exploration expenditures on the Company's Balkans Property in the Republic of Serbia, to be incurred within a period of three (3) years. BGMI will earn a five (5%) per cent equity interest for each CAD$500,000 of approved expenditures incurred and up to a thirty five (35%) per cent equity interest once the entire CAD$3,500,000 of qualified expenditures has been incurred. The Company and BGMI continue to explore the Balkans Property in a joint venture.

On behalf of the Board of Directors


Marc Morin, President & CEO

Statements in this press release regarding the Company which are not historical facts are "forward-looking statements" that involve risks and uncertainties. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties such as the risk that the closing may not occur for any reason. Actual results in each case could differ materially from those currently anticipated in such statements due to factors such as: (i) the inability of the parties to consummate the definitive letter agreement; (ii) fluctuation of mineral prices; (iii) a change in market conditions; (iv) the inability to produce the technical report for any reason whatsoever; and (v) the refusal of the Exchange to accept the proposed transaction for any reason whatsoever. Except as required by law, the Company does not intend to update any changes to such statements.

We seek Safe Harbor.

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.

Contact Information

  • Ultra Lithium Inc.
    Andrew Brown
    (604) 669-5778
    (604) 669-9768 (FAX)