International Lithium Reaches Settlement Agreement With Ganfeng Lithium on Mariana JV, Argentina
NEWS RELEASE
International Lithium Reaches Settlement Agreement
With Ganfeng Lithium on Mariana JV, Argentina
Vancouver, B.C. December 28, 2017: International Lithium Corp. (the “ Company” or
“ILC”) (TSX VENTURE: ILC) is pleased to announce a settlement agreement between
the Company and its joint venture partner , Mariana Lithium Co. Ltd . (("MLC"), a
subsidiary of Jiangxi Ganfeng Lithium Co., Ltd . ("Ganfeng")) regarding the Mariana
Lithium JV brine project (the “Mariana JV”) in Salta, Argentina.
As it was reported in Company’s MD&A, i n January 2017, during the transition from the
former management of ILC to the current manag ement, i t is acknowledged that
Ganfeng and MLC consider ed that ILC faile d to meet a cash call in respect of the
Mariana JV and that as a result, ILC could have been diluted to a 14.492% share of the
project. ILC considered that the cash call notification was made improperly at a time that
the relevant officers of ILC involved in preparing the cash call were in transition to
becoming employees or consultants of the Mariana JV as consultants to Ganfeng’s
operations and that ILC's share should therefore have remained at 20%. Neither side
accepted the position of the other.
ILC and Ganfeng have now reached a settlement agreement on the matter whereby:
1. Outstanding management fee and a settlement amount totaling US$84,706 are
to be paid to ILC by MLC;
2. The double dilution for ILC’s purported default in meeting the January 2017 cash
call, resulting in an ownership percentage of 14.492% for ILC, is to be calculated
as a single dilution amount resulting in an ownership of 17.246% in the Mariana
project for ILC;
3. ILC will maintain its status as having zero defaults as defined in the joint venture
agreement;
4. ILC will pay to MLC US$206,294 which is the difference of its underpayment of
the cash calls up to and including the November 28, 2017 cash call paid ,
representing cash calls at the 14.492% level now revised to 17.246%; and
5. US$15,698 to be paid to ILC by MLC for various project-related costs.
In accordance with the settlement agreement, MLC and ILC agree to act in good faith
and in the best interests of the Mariana JV. Both ILC and MLC and , where appropriate,
1111 Melville Street, Suite 1100
Vancouver, British Columbia
V6E 3V6, Canada
T: 604-700-8912
www.internationallithium.com
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their subsidiaries and/or parents and/or affiliates will in good faith review the Mariana
Joint Venture Agreement in the first quarter of 2018 with a view to resolving any issues
in which there ar e genuine commercial or documentation concerns by either party or a
perceived lack of clarity, whether due to poor drafting or any other reason.
“We are finishing our transition year at International Lithium on a very positive note. Our
new ILC team has settled all outstanding issues with our Mariana JV partner. MLC and
ILC have agreed that they will act in good faith and in the best interest s of the Mariana
JV. Now we can focus our efforts on Mariana JV development and maximi ze its value
for our shareholders,” commented Kirill Klip, Executive Chairman of ILC.
About International Lithium Corp.
International Lithium Corp. has a significant portfolio of projects, strong management,
robust financial support, and a strategic partner and keystone investor, Ganfeng Lithium
Co. Ltd., a leading China-based lithium product manufacturer.
The Company’s primary focus is the strategic stake in the Mariana lithium -potash brine
project located within the renowned South American “Lithium Belt” that is the host to the
vast majority of global lithium resources, reserves and production. The Mariana project
strategically encompasses an entire mineral rich evaporite basin, totaling 160 square
kilometres that ranks as one of the more prospective salars or ‘salt lakes’ in the region.
Current ownership of the project is through a joint venture company, Litio Minera
Argentina S. A. (“Litio”), a private company registered in Argentina . As a result of the
December 2017 settlement agreement, ownership of Litio will be revised to 82.754% by
Mariana Lithium Co. Ltd. (“ MLC”), and 17.246 % by ILC in early 2018 . In addition, ILC
has an option to acquire 10% in the Mariana project through a back-in right.
Complementing the Company’s lithium brine project in Argentina are three rare metals
pegmatite properties in Canada known as the Mavis, Raleigh, and Forgan projects, and
the Avalonia project in Ireland, which encompasses an exte nsive 50km-long pegmatite
belt. The Avalonia project is under option to strategic partner Ganfeng, who currently
owns 55% of the project. The Mavis and Raleigh projects are under option to strategic
partner Pioneer Resources Limited (ASX: PIO) pursuant to which Pioneer can acquire
up to a 51% interest in the projects.
The Mavis, Raleigh and Forgan projects together form the basis of the Company’s
newly created Upper Canada Lithium Pool designated to focus on acquiring numerous
prospects with previously reported high concentrations of lithium in close proximity to
existing infrastructure.
With the increasing demand for high tech rechargeable batteries used in vehicle
propulsion technologies and portable elect ronics, lithium is paramount to tomorrow’s
“green-tech”, sustainable economy. By positioning itself with solid strategic partners and
acquiring high quality assets for the Energy rEVolution supply chain, ILC aims to be the
partner of choice for investors i n green -tech and to continue to build value for its
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shareholders.
On behalf of the Board of Directors,
Kirill Klip
Executive Chairman
www.internationallithium.com
For further information concerning this news release please contact +1 604-700-8912
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 contains certain “forward -
looking information” within the meaning of applicable securities law. Forward-looking
information or forward -looking statements in this news release include: the timing and
anticipated results of environmental impact studies, timing of preliminary economic
studies on the Mariana project, the expectation of feasibility studies, lithium recoveries,
modelling of capital and operating costs , and continued agreement between the
Company and Jiangxi Ganfeng Lithium Co. Ltd. regarding the Company’s percentage
interest in the Mariana JV . Such forward-looking information is based on a number of
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 signific ant business, economic 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.