Ultra Lithium Finalizes Joint Venture Terms With BGMI on Balkans Project in Serbia
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/18/13 -- Ultra Lithium (TSX VENTURE: ULI)(FRANKFURT: QFB) ("the Company" or "Ultra") is pleased to announce that further to its news release dated May 31, 2012, the Company has finalized terms with Beijing Guofang Mining Investment Co., Ltd. ("BGMI") for the joint exploration and development of Ultra's Balkans project.
Under the terms of the arrangement, a new Canadian company has been incorporated, Ultra Dragon Holdings Inc. ("Ultra Dragon"), which will hold the Balkans exploration licenses. BGMI may earn up to a 35% participating interest in Ultra Dragon by funding up to $3,500,000 of exploration expenditures ("Earn-in funds") on the Balkans project. BGMI will earn a 5% participating interest for each tranche of $500,000 of the Earn-in funds to a maximum of 35% within a period of 3 years.
Ultra Dragon has received the initial capital from BGMI of $500,000 for a 5% interest in Ultra Dragon.
During the Earn-in period, all exploration expenditures will be funded by the Earn-in funds. After the Earn-in period, each of Ultra and BGMI will contribute for its proportionate share of exploration expenditures based on their 65% and 35% participating interests.
Marc Morin, CEO of Ultra, stated that: "We are very pleased to finalize joint venture terms with BGMI. The transaction facilitates the advancement of the Balkans project without increasing shareholder dilution."
As announced on May 27, 2013, the agreement commenced Phase 2 exploration and geophysical crews have been mobilized to the properties.
ULTRA LITHIUM INC.
On behalf of the Board,
Marc Morin, 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.
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.
We seek Safe Harbor.
Contacts:
Ultra Lithium Inc.
Marc Morin
CEO
(604) 669-5778
(604) 669-9768 (FAX)