Vancouver, February 11, 2021 – Leading Edge Materials Corp. (“Leading Edge Materials” or the “Company”) (TSXV: LEM) (Nasdaq First North: LEMSE) (OTCQB: LEMIF) is pleased to announce it has signed a definitive agreement (the “Agreement”) with CSE-listed United Lithium Corp. (“ULTH”) for the sale of 100% (the “Transaction”) of the Bergby Lithium project (the “Project”).
The Agreement follows the previously announced signing of a non-binding Letter of Intent contemplating the Transaction (December 6, 2020) and is subject to certain closing conditions which the Company and ULTH will work to finalize.
On and subject to the conditions set forth in the Agreement, the Company will receive the following consideration under the Transaction:
ULTH will also commit to the Company to exercise reasonable commercial efforts toward spending CAD$1,000,000 on exploration work on the Project within 18 months from the Closing Date.
The ULTH Shares to be issued pursuant to the Transaction shall be subject to an escrow restriction whereby 20% of such ULTH Shares shall be released after each subsequent four (4) month period following the Closing Date.
Upon completion of the Transaction, the Company, at its sole cost, will make available to ULTH the part-time services of its Chief Geologist to provide geological support in exploring the Project for a period of 12 months following the Closing Date.
Filip Kozlowski, CEO states “We are extremely happy to have come to an agreement and move towards closing on the sale of the Bergby Lithium project. Upon closing, United Lithium intends to commence an extensive exploration program on the project which will hopefully extend the discovery for the benefit of its shareholders and Leading Edge Materials after having received part of the consideration in ULTH shares. More importantly, handing over the project will enable us to focus our resources even further on rapidly delivering on the ongoing development work for the Woxna Graphite mine and the Norra Karr heavy REE project. Over the last few months we have seen increasing prices for graphite and magnet rare earths such as dysprosium, terbium, neodymium and praseodymium with an ensuing significant increase in interest from the investor community for assets that are targeting these raw materials and we are now in a much stronger position to deliver on this momentum.”
The Project located in central Sweden 25km north of Gavle was staked by the Company in 2016 and covers three exploration permits for a total of 1903Ha. A prospecting campaign with mapping and sampling identified an extensive lithium-mineralized spodumene pegmatite boulder field and outcrops. The discovery was followed up with two separate drilling campaigns totaling 1525m of drilling in 33 drill holes to a maximum depth of 131.1m over an approximate 1500m strike length.
On behalf of the Board of Directors,
Leading Edge Materials Corp.
Filip Kozlowski, CEO
For further information, please contact the Company at:
About Leading Edge Materials
Leading Edge Materials is a Canadian public company focused on developing a portfolio of critical raw material projects located in the European Union. Critical raw materials are determined as such by the European Union based on their economic importance and supply risk. They are directly linked to high growth technologies such as lithium-ion batteries and permanent magnets for electric motors and wind power that underpin the sustainability transition of society. The portfolio of projects includes the 100% owned Woxna Graphite mine (Sweden), Norra Kärr HREE project (Sweden), Bergby lithium project (Sweden) and the 51% owned Bihor Sud Nickel Cobalt exploration alliance (Romania).
The information was submitted for publication through the agency of the contact person set out above, on February 11, 2020 at 6.15 am Vancouver time.
Leading Edge Materials is listed on the TSXV under the symbol “LEM”, OTCQB under the symbol “LEMIF” and Nasdaq First North Stockholm under the symbol “LEMSE”. Mangold Fondkommission AB is the Company’s Certified Adviser on Nasdaq First North and may be contacted via email CA@mangold.se or by phone +46 (0) 8 5030 1550.
About United Lithium Corp.
United Lithium Corp. (CSE: ULTH) is an exploration & development company energized by the global demand for lithium. The company is targeting lithium projects in politically safe jurisdictions with advanced infrastructure that allows for rapid and cost-effective exploration, development and production opportunities.
This news release may contain statements which constitute “forward-looking information” under applicable Canadian securities laws, including statements regarding plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities of the Company or with respect to the Agreement and the likelihood that the Transaction will be completed. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking information. Investors are cautioned that any such forward-looking information is not a guarantee of future business activities and involves risks and uncertainties, and that the Company’s future business activities may differ materially from those in the forward-looking information as a result of various factors, including, but not limited to, fluctuations in market prices, risks relating to the inability of the parties to satisfy the conditions precedent to the closing of the Agreement, successes of the operations of the Company, continued availability of capital and financing and general economic, market or business conditions. There can be no assurances that such information will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news release.