Ultra Lithium Enters Into a Letter of Intent for South Big Smoky Valley, Nevada Joint Venture
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 28, 2013) - Ultra Lithium Inc. (TSX VENTURE:ULI) ("Ultra" or "the Company") is pleased to announce that it has signed a non-binding Letter of Intent ('LOI") with CCG Mining (Canada) Inc. ("CCG") with respect to a joint venture to explore and develop ULI's South Big Smoky Valley claims located in Nevada, USA (the "Property"). CCG Mining Inc. is a subsidiary of CCG Group which is a state owned entity responsible for prospecting and exploring mineral deposits in China as well as around the world. It was established in 1972 and is headquartered in Jinan, the Capital City of Shandong province, China. CCG Group has over a thousand geologists and supporting staff.
Under the terms of the LOI, CCG undertakes and commits to fund up to $2,000,000 of qualifying exploration expenditures in the Property to acquire up to a 35% equity interest in the joint venture over a period of three years. CCG will earn a 10% equity interest for a $500,000 investment in the first year, an additional 10% equity interest for a $500,000 investment in the second year and an additional 15% equity interest for a $1,000,000 investment in the third year. Upon CCG's full exercise of its option, the joint venture will be owned 65% by ULI and 35% by CCG.
CCG will have the right of first refusal to further fund and increase its ownership in the joint venture in addition to its 35% share should ULI grant a further option of its interest in the Property.
ULI's CEO, Marc Morin comments, "We are delighted to work with our new partners CCG to explore and develop the South Big Smoky Valley property."
The Property consists of 664 placer claims (13,280 acres) strategically located in the South Big Smoky Valley, Esmeralda County, Nevada. South Big Smoky Valley shares a similar geology and weathering history to Clayton Valley, located 16 miles to the south. The north end of Clayton Valley hosts Chemetall Foote Corporation's Silver Peak Mine, the only lithium brine producer in the United States. Mine production comes from lithium enriched brines located below the surface. This plant has been in production since 1967.
Completion of the transaction contemplated herein is subject to certain conditions including but not limited to the signing of a definitive agreement on or before March 16, 2014 and the receipt of all necessary regulatory and third party approvals.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the Company by Mr. Shahab Tavakoli, M.Sc., a technical consultant to the Company and a qualified person.
ON BEHALF OF THE BOARD OF DIRECTORS,
Marc Morin, CEO and Director
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