International Lithium Corp. to Receive CAD$2.2m plus a 2% Net Smelter Royalty Following Reduction of Interest in Its Non-Core Avalonia Project
International Lithium Corp. to Receive
CAD$2.2m plus a 2% Net Smelter Royalty
Following Reduction of Interest in Its Non-Core
Avalonia Project
Vancouver, British Columbia--(Newsfile Corp. - September 17, 2024) - The Board of International
Lithium Corp. (TSXV: ILC) (OTCQB: ILHMF) (FSE: IAH) (the "Company" or "ILC") is pleased to
announce that it has signed a variation agreement in respect of its non-core Avalonia project in Ireland,
which is a Joint Venture ("JV") with GFL International, Co. Ltd. ("Ganfeng") whereby:
i
.
The option period under which Ganfeng has to spend CAD$10m to increase its share in the
Avalonia project from 55% to 79% is further extended to 31 December 2025; and
ii
.
In consideration of a payment schedule from Ganfeng totalling CAD$2.2m between the period of
September 2024 and 31 October 2025, and in further consideration of a 2% Net Smelter Royalty
to ILC, the JV agreement will be varied such that ILC will reduce its stake in the Avalonia project to
nil.
Background
The Avalonia project in Blackstairs, Ireland, has been a JV between ILC and Ganfeng since 2014, and
Ganfeng has had management control of the project since 2017. While there were some historic
resource estimates, drilling since then has not yet resulted in further resource estimates or an economic
analysis.
Although the project is thought to have promise, it has remained relatively early stage and has not been a
priority for either Ganfeng or ILC's expenditure.
Use of sale proceeds
The Company plans to use part of the CAD$2.2m net proceeds, which will be payable mainly in 2025,
for exploration in Ontario at its Raleigh Lake and Firesteel projects and in Zimbabwe, with the remainder
used for working capital. The expenditure in Zimbabwe is dependent on the grant of Exclusive
Prospecting Orders ("EPOs") there, which is believed to be relatively imminent.
Regulatory Approval
The transaction is below the level that would make it a "Reviewable Disposition" under TSXV policies
and is, therefore, not subject to TSXV approval.
John Wisbey, Chairman and CEO of the Company, commented:
"We are pleased to have concluded this transaction, strengthening our balance sheet and enabling
the Board to focus on its other operations.
"We had for some time regarded our stake in Avalonia as a non-strategic asset, the more so as it
would have reduced to 21% with further expenditure by our partner Ganfeng, and the project still
requires appreciable investment to reach the resource milestones which could make it valuable.
Therefore, it made sense to sell the stake to Ganfeng while at the same time receiving a 2% Net
Smelter Royalty that would be valuable if the Avalonia project achieves its goals and comes to
fruition. Our relationship with Ganfeng remains strong and important for us.
"We still have great expectations for the future demand for lithium, and for Raleigh Lake and our other
lithium projects, despite the lithium price trends we have seen since the end of 2022. In addition, we
are excited by the significant valuation upside from our rubidium deposits at Raleigh Lake, for which a
Maiden Resource Estimate for rubidium was declared in March 2023, the potential to find copper-rich
Volcanogenic Massive Sulphide ("VMS") deposits at our Firesteel copper project, and by our
strategic interests in Zimbabwe. We look forward to updating the market on these various initiatives in
due course."
About International Lithium Corp.
The world has seen a significant governmental and public drive to move away from the energy market's
historic dependence on oil and gas. In addition, we have seen the clear and increasingly urgent wish by
the USA and Canada and other major economies to safeguard their supplies of critical metals and to
become more self-sufficient. Our Canadian projects, which contain lithium, rubidium and copper, are
strategic in that respect.
Our key mission in the next decade is to make money for our shareholders from lithium and other battery
metals and rare metals while at the same time helping to create a greener, cleaner planet and less
polluted cities. This includes optimizing the value of our existing projects in Canada as well as finding,
exploring and developing projects that have the potential to become world class deposits. We have
announced separately that we regard Zimbabwe as an important strategic target market for ILC, and that
we have applied for and hope to receive EPOs there. We hope to be able to make announcements over
the next few weeks and months.
The Company's interests in various projects now consists of the following, and in addition the Company
continues to seek other opportunities:
Name
Metal
Location
Area
(Hectares)
Current Ownership
Percentage
Future Ownership
percentage if
options exercised
or work carried out
Operator or JV
Partner
Raleigh Lake
Lithium
Rubidium
Ontario
48,500
100%
100%
ILC
Firesteel
Copper
Cobalt
Ontario
6,600
90%
90%
ILC
Wolf Ridge
Lithium
Ontario
5,700
0%
100%
ILC
Mavis Lake
Lithium
Ontario
2,600
0%
0%
(carries an extra
earn-in payment of
CAD$ 0.7 million if
resource targets
met)
Critical Resources
Ltd (ASX: CRR)
Avalonia
Lithium
Ireland
29,200
0%
2.0% Net Smelter
Royalty
Ganfeng Lithium
Forgan/ Lucky
Lakes
Lithium
Ontario
< 500
0%
1.5% Net Smelter
Royalty
Ultra Lithium Inc.
(TSXV: ULT)
The Company's primary strategic focus at this point is on the Raleigh Lake lithium and rubidium project
and the Firesteel copper project in Canada and on obtaining EPOs and mineral claims in Zimbabwe.
The Raleigh Lake Project consists of 48,500 hectares (485 square kilometres) of mineral claims in
Ontario and is ILC's most significant project in Canada. Drilling has so far been on less than 1,000
hectares of our claims. A Preliminary Economic Assessment (PEA) was published for ILC's lithium at
Raleigh Lake in December 2023, with detailed economic analysis of ILC's separate rubidium resource
still to come. Raleigh Lake is 100% owned by ILC, is not subject to any encumbrances, and is royalty
free. The project has excellent access to roads, rail and utilities.
A continuing goal has been to remain a well-funded company to turn our aspirations into reality, and
following the disposal of the Mariana project in Argentina in 2021, the Mavis Lake project in Canada in
January 2022, and the Avalonia project in 2024, ILC has achieved sufficient inward cashflow to be able
to make progress with its exploration projects, even before any fundraising.
With the increasing demand for high tech rechargeable batteries used in electric vehicles and electrical
storage as well as portable electronics, lithium has been designated "the new oil", and is a key part of a
green energy sustainable economy. By positioning itself with projects with significant resource potential
and with solid strategic partners, ILC aims to be one of the lithium and rare metals resource developers
of choice for investors and to continue to build value for its shareholders in the '20s, the decade of
battery metals.
On behalf of the Company,
John Wisbey
Chairman and CEO
www.internationallithium.ca
For further information concerning this news release please contact +1 604-449-6520
Neither 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.
Cautionary Statement Regarding Forward-Looking Information
Except for statements of historical fact, this news release or other releases contain certain "forward-
looking information" within the meaning of applicable securities law. Forward-looking information or
forward-looking statements in this or other news releases may include: the effect of results of
anticipated production rates, the timing and/or anticipated results of drilling on the Raleigh Lake or
Firesteel or Wolf Ridge projects, the expectation of resource estimates, preliminary economic
assessments, feasibility studies, lithium or rubidium or copper recoveries, modeling of capital and
operating costs, results of studies utilizing various technologies at the company's projects, budgeted
expenditures and planned exploration work on the Company's projects, increased value of
shareholder investments, the potential from the company's third party earn-out or royalty
arrangements, and assumptions about ethical behaviour by our joint venture partners or third party
operators of projects. Such forward-looking information is based on assumptions and subject to a
variety of risks and uncertainties, including but not limited to those discussed in the sections entitled
"Risks" and "Forward-Looking Statements" in the interim and annual Management's Discussion and
Analysis which are available at www.sedar.com. While management believes that the assumptions
made are reasonable, there can be no assurance that forward-looking statements will prove to be
accurate. Should one or more of the risks, uncertainties or other factors materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from those described in
forward-looking information. Forward-looking information herein, and all subsequent written and oral
forward-looking information are based on expectations, estimates and opinions of management on
the dates they are made that, while considered reasonable by the Company as of the time of such
statements, are subject to significant business, economic, legislative, and competitive uncertainties
and contingencies. These estimates and assumptions may prove to be incorrect and are expressly
qualified in their entirety by this cautionary statement. Except as required by law, the Company
assumes no obligation to update forward-looking information should circumstances or management's
estimates or opinions change.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/223555