- Leading Edge Materials (LEM) is selling 100 per cent of its Bergby Lithium Project
- United Lithium Corp. is acquiring 100 per cent interest in the project
- The Bergby Lithium Project is located in Sweden
- The sale remains subject to certain closing conditions
- Leading Edge Materials is down 1.37 per cent on the day, with shares trading at C$0.36 at 2:30 p.m. EST
Leading Edge Materials (LEM) is selling 100 per cent of its Bergby Lithium Project.
The company is selling the project to United Lithium Corp.
The sale remains subject to certain closing conditions.
Under the terms of the agreement, Leading Edge will receive C$250,000 in cash on the transaction closing date. The company will also get 1,031,864 common shares in the capital of United Lithium along with 400-thousand purchase warrants, with each warrant lasting 36 months. Leading Edge will get another C$250,000 payment six months after the transaction closes.
The company also retains a two-per-cent net smelter return (NSR) royalty.
United Lithium retains a $1-million buyback option on the NSR.
United Lithium also commits to exercise “reasonable commercial efforts toward spending C$1 million on exploration work on the project within 18 months from the closing date.
“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,” said Leading Edge CEO Filip Kozlowski.
Leading Edge Materials is a Canadian public company focused on developing a portfolio of critical raw material projects located in the European Union.
Leading Edge Materials is down 1.37 per cent on the day, with shares trading at C$0.36 at 2:30 p.m. EST.
