Vancouver, December 6, 2020 – 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 non-binding Letter of Intent (the “LOI”) with CSE-listed United Lithium Corp. (“ULTH”) contemplating the potential sale of 100% of the Bergby Lithium project (the “Transaction”).
The LOI is non-binding and the Transaction is subject to, among other matters, a due-diligence review By ULTH and the signing of a binding Definitive Agreement (the “DA”). There is no certainty that the parties will be able to conclude the Transaction. The LOI is non-binding and neither the Company nor ULTH is under any obligation to enter into, or continue negotiations regarding, the DA or to proceed with the Transaction. Other than as specifically set out in the LOI, no binding agreement will exist between the Company and ULTH relating to the Transaction unless and until the DA has been finalized and executed. Key terms of the proposed Transaction are stated in the LOI as follows (all numbers Canadian dollars unless specified otherwise):
The Company and ULTH have agreed to a 60-day exclusivity period during which they will negotiate exclusively with each other with a view to settling the DA. There can be no assurances that any component of the Transaction will proceed, nor can there be any assurance as to the final definitive terms thereof.
Filip Kozlowski, CEO states “The Bergby lithium project was discovered by the Company in 2016 as one of few hard-rock lithium deposits in Sweden with potential. Previous work clearly shows potential for further exploration and expansion of the discovery. Having two other significant projects in our portfolio has limited our capacity to give Bergby the proper attention it deserves, and it is therefore pleasing to sell this project to a dedicated lithium-explorer such as United Lithium Corp. and share the potential upside of future committed exploration work on the project through the shares and warrants we receive as part of the transaction. The proceeds from the sale of Bergby will enable the Company to focus on our advanced Woxna and Norra Kärr projects.”
Michael Dehn, President and CEO of United Lithium Corp iterated “We approached Leading Edge Materials on the Bergby lithium project as we felt it geologically resembles spodumene and petalite rich pegmatites found in and around the Tanco Li-Ta-Cs Mine in Manitoba. Given that the property has excellent logistics including being approximately 130 km from Stockholm’s Arlanda International Airport, and close to the European market where we see increasing demand of lithium for the battery industry, as well as traditional use in pharmacology, military application, nuclear reactors, glasses and ceramics, lubricants and space vehicle for carbon absorption/oxygen release, we feel that Bergby can add value to both our shareholders and Leading Edge Material’s shareholders relatively rapidly.”
The Bergby lithium 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 with intersections of high grade lithium mineralizations.
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).
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.
The Company’s consolidated financial statements and related management’s discussion and analysis are available on the Company’s website at www.leadingedgematerials.com or under its profile on SEDAR at www.sedar.com
This information is information that Leading Edge Materials Corp. (publ). is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out above, on December 6, 2020 at 11:00 pm 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.
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.
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 LOI and the likelihood that the DA will be entered into and the Transaction will be consummated. 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 preliminary and non-binding nature of the LOI, the inability of the parties to satisfy the conditions precedent to the execution of the LOI or ultimately agree on definitive terms, 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.