- Ultra Lithium Inc. (ULT) announces an agreement with Yahua International Investment and Development Co. Ltd. and enters a private placement for a combined $10 million
- The private placement is for the sale of 29.8 million Ultra Lithium units for $0.235 per unit
- Yahua will invest a total of $8 million to acquire a 60 per cent interest in a subsidiary of Ultra Lithium
- $5 million of which will go towards acquiring units in the private placement
- Upon completion of payments, the joint venture with Yahua will be formed
- Ultra Lithium Inc. (ULT) is down 6.06 per cent trading at $0.31 per share as of 3:09 p.m. ET
Ultra Lithium (ULT) has announced a joint venture agreement with Yahua International Investment and Development Co. Ltd.
Ultra Lithium has also announced a private placement for a proceeds of $10 million.
The private placement is for the sale of 29.8 million units priced at $0.235 per unit.
Each unit will include one common share and one half of one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at a price of $0.30 per common share for one year following the closing date.
The net proceeds will be used to fund the exploration of Ultra Lithium’s properties in Argentina, Ontario, and Nevada and for general working capital purposes.
Under the terms of the purchase, sale, and joint venture agreement, Yahua will invest a total of $8 million to acquire a 60 per cent interest in a subsidiary of Ultra Lithium which holds the sought-after Northern Ontario mining properties.
Ultra Lithium will receive an initial $5 million following an instalment schedule spread over approximately three weeks as a part of the private placement and agreement.
Upon completion of the initial payment, the joint venture with Yahua will be formed. Yahua will invest the other $3 million into the joint venture company for exploration expenditures.
The board of directors of the joint venture will have five members, three of which will be nominated by Yahua International and two by Ultra Lithium. The companies will retain their equity positions in the joint venture and prohibit dilution until the commencement of commercial production.
Ultra Lithium Inc. (ULT) is down 6.06 per cent trading at $0.31 per share as of 3:09 p.m. ET.
