VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 7, 2016) - Ultra Lithium Inc. (TSX VENTURE:ULI) ("Ultra Lithium" or "the Company") is pleased to announce that it has signed an agreement with Metron Capital Corp. to option 100 of the Company's 659 Big Smoky Valley brine lithium claims in Nevada USA. Under the terms of the agreement signed on December 02, 2016, Metron Capital Corp., will acquire 100% interest in the claims by making cash payments, issuing stock and completing exploration work as follows:
- Cash payment of $15,000, plus 500,000 common shares of Metron Capital upon TSX approval.
- Carrying out exploration expenditures of $20,000 on or before May 31st, 2017.
- Cash payment of $30,000, plus 500,000 common shares of Metron Capital on anniversary date.
- Carrying out exploration expenditures of $150,000 on or before May 31st, 2018.
- Cash payment of $60,000, plus 1,000,000 common shares of Metron Capital on anniversary date.
- Carrying out exploration expenditures of $250,000 on or before May 31st, 2019.
The Company will retain a three percent (3%) Gross Overriding Royalty (GOR). Metron Capital Corp. will have a right to purchase a 1% of the GOR for $1,500,000, at any time up to when a production decision is made.
The agreement is subject to TSX Approval.
The Company is also pleased to announce that it has closed a non-brokered private placement of 1,200,000 units (the "Units") of the Company at a price of $0.15 per Unit for aggregate proceeds of $180,000. Each Unit is comprised of one common share and one common share purchase warrant ("Warrant"). Each Warrant will entitle the holder to purchase an additional common share of the Company at an exercise price of $0.30 per share for a period of one year from closing of the private placement provided that if the closing price of the common shares of the Company on any stock exchange or quotation system on which the common shares are then listed or quoted is equal to or greater than $0.40 for a period of ten (10) consecutive trading days, the Company will have the right to accelerate the expiry of the warrants by giving notice to the holders of the warrants that the warrants will expire at 4:30 p.m. (Vancouver time) on a date that is not less than ten (10) business days from the date notice is given.
The Company is also pleased to announce that 16,820,000 warrants were exercised for gross proceeds of $1,682,000.
Dr. Weiguo Lang, CEO of Ultra Lithium, stated that, "This option agreement will allow the Company to continue exploration at the Big Smoky Valley project while focusing its resources on the Georgia Lake hard rock lithium project in Northern Ontario and the brine lithium properties in Salta Argentina. With the closing of the private placement and the warrants exercise the Company is well funded to accomplish its exploration plans for 2017."
The technical information contained in this news release has been reviewed and approved by Afzaal Pirzada, P.Geo., a qualified person, as defined by NI 43-101 who works as Vice President Exploration of the Company.
ON BEHALF OF THE BOARD OF DIRECTORS
Kiki Smith, CFO
About Ultra Lithium Inc.
Ultra Lithium is an exploration and development company with a focus on the acquisition and development of lithium assets. The Company is currently carrying out exploration at the South Big Smoky Valley brine lithium project, the Georgia Lake hard rock spodumene type lithium project, and completing due diligence on the Salta, Argentina brine lithium properties.
For further information, please visit www.ultralithium.com or view the Company's filings at www.SEDAR.com.