Leading Edge Materials Signs Definitive Agreement to Sell 100% of the Bergby Lithium Project
NEWS RELEASE February 11, 2021
LEADING EDGE MATERIALS CORP.
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
T +1 604 685 9316 | www.leadingedgematerials.com
TSX.V: LEM | Nasdaq First North: LEMSE | OTCQB: LEMIF
TSX.V: LEM | Nasdaq First North: LEMSE | OTCQB: LEMIF
LEADING EDGE MATERIALS SIGNS DEFINITIVE AGREEMENT TO
SELL 100% OF THE BERGBY LITHIUM PROJECT
Vancouver, February 11, 2021 – Leading Edge Materials Corp. (“Leading Edge Materials” or the
“Company”) (TSXV: LEM) (Nasdaq First North: LEMSE) (OTCQB: LEMIF) is pleased to announce it
has signed a definitive agreement (the “Agreement”) with CSE-listed United Lithium Corp. (“ULTH”)
for the sale of 100% (the “Transaction”) of the Bergby Lithium project (the “Project”).
The Agreement follows the previously announced signing of a non-binding Letter of Intent
contemplating the Transaction (December 6, 2020) and is subject to certain closing conditions which
the Company and ULTH will work to finalize.
On and subject to the conditions set forth in the Agreement, the Company will receive the following
consideration under the Transaction:
▪ CAD$250,000 in cash on the closing date of the Transaction (the “Closing Date”);
▪ 1,031,864 common shares in the capital of ULTH (each, a “ULTH Share”);
▪ 400,000 common share purchase warrants (the “Warrants”) with each Warrant entitling the
Company to acquire, for a period of 36 months, one ULTH Share at an exercise price equal
to approximately CAD$0.485;
▪ an additional $250,000 in cash on the date that is 6 months following the Closing Date;
▪ a 2% net smelter returns royalty on the Project, which shall be subject to a buyback right in
favour of ULTH for CAD$1,000,000; and
▪ subject to the Company acquiring certain additional mineral claims in the region of the
Project prior to March 21, 2021 (the “Bonus Date”), receival of such additional number of
common share purchase warrants (“Bonus Warrants”) as is equal to CAD$250,000 divided
by the 10-day volume weighted average trading price of the ULTH Shares on the CSE as of
the date immediately preceding the Bonus Date (the “Bonus Price”) with each Bonus Warrant
entitling the Company to acquire, for a period of 36 months, one ULTH Share at an
exercisable price equal to the Bonus Price.
ULTH will also commit to the Company to exercise reasonable commercial efforts toward spending
CAD$1,000,000 on exploration work on the Project within 18 months from the Closing Date.
The ULTH Shares to be issued pursuant to the Transaction shall be subject to an escrow restriction
whereby 20% of such ULTH Shares shall be released after each subsequent four (4) month period
following the Closing Date.
Upon completion of the Transaction, the Company, at its sole cost, will make available to ULTH the
part-time services of its Chief Geologist to provide geological support in exploring the Project for a
period of 12 months following the Closing Date.
Filip Kozlowski, CEO states “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
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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.”
The Project located in central Sweden 25km north of Gavle was staked by the Company in 2016 and
covers three exploration permits for a total of 1903Ha. A prospecting campaign with mapping and
sampling identified an extensive lithium-mineralized spodumene pegmatite boulder field and
outcrops. The discovery was followed up with two separate drilling campaigns totaling 1525m of
drilling in 33 drill holes to a maximum depth of 131.1m over an approximate 1500m strike length.
On behalf of the Board of Directors,
Leading Edge Materials Corp.
Filip Kozlowski, CEO
For further information, please contact the Company at:
www.leadingedgematerials.com
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About Leading Edge Materials
Leading Edge Materials is a Canadian public company focused on developing a portfolio of critical
raw material projects located in the European Union. Critical raw materials are determined as such
by the European Union based on their economic importance and supply risk. They are directly linked
to high growth technologies such as lithium-ion batteries and permanent magnets for electric
motors and wind power that underpin the sustainability transition of society. The portfolio of
projects includes the 100% owned Woxna Graphite mine (Sweden), Norra Kärr HREE project
(Sweden), Bergby lithium project (Sweden) and the 51% owned Bihor Sud Nickel Cobalt exploration
alliance (Romania).
Additional Information
The information was submitted for publication through the agency of the contact person set out
above, on February 11, 2020 at 6.15 am Vancouver time.
Leading Edge Materials is listed on the TSXV under the symbol “LEM”, OTCQB under the symbol
“LEMIF” and Nasdaq First North Stockholm under the symbol "LEMSE". Mangold Fondkommission
AB is the Company’s Certified Adviser on Nasdaq First North and may be contacted via email
[email protected] or by phone +46 (0) 8 5030 1550.
About United Lithium Corp.
United Lithium Corp. (CSE: ULTH) is an exploration & development company energized by the global
demand for lithium. The company is targeting lithium projects in politically safe jurisdictions with
advanced infrastructure that allows for rapid and cost-effective exploration, development and
production opportunities.
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Reader Advisory
This news release may contain statements which constitute “forward-looking information” under
applicable Canadian securities laws, including statements regarding plans, intentions, beliefs and current
expectations of the Company, its directors, or its officers with respect to the future business activities of
the Company or with respect to the Agreement and the likelihood that the Transaction will be completed.
The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and
similar expressions, as they relate to the Company, or its management, are intended to identify such
forward-looking information. Investors are cautioned that any such forward-looking information is not a
guarantee of future business activities and involves risks and uncertainties, and that the Company’s future
business activities may differ materially from those in the forward-looking information as a result of
various factors, including, but not limited to, fluctuations in market prices, risks relating to the inability of
the parties to satisfy the conditions precedent to the closing of the Agreement, successes of the operations
of the Company, continued availability of capital and financing and general economic, market or business
conditions. There can be no assurances that such information will prove accurate and, therefore, readers
are advised to rely on their own evaluation of such uncertainties. The Company does not assume any
obligation to update any forward-looking information except as required under the applicable securities
laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news release.