Ultra Lithium Finalizes Joint Venture Terms With BGMI On Balkans Project In Serbia
Vancouver, BC – Ultra Lithium Inc. (TSX-V: ULI) (FSE: QFB) (“ULI” or “the Company”) is pleased to announce that further to its news release dated May 31, 2012, the Company has finalized terms with Beijing Guofang Mining Investment Co., Ltd. (“BGMI”) for the joint exploration and development of Ultra’s Balkans project.
Under the terms of the arrangement, a new Canadian company has been incorporated, Ultra Dragon Holdings Inc. (“Ultra Dragon”), which will hold the Balkans exploration licenses. BGMI may earn up to a 35% participating interest in Ultra Dragon by funding up to $3,500,000 of exploration expenditures (“Earn-in funds”) on the Balkans project. BGMI will earn a 5% participating interest for each tranche of $500,000 of the Earn-in funds to a maximum of 35% within a period of 3 years.
Ultra Dragon has received the initial capital from BGMI of $500,000 for a 5% interest in Ultra Dragon.
During the Earn-in period, all exploration expenditures will be funded by the Earn-in funds. After the Earn-in period, each of Ultra and BGMI will contribute for its proportionate share of exploration expenditures based on their 65% and 35% participating interests.
Marc Morin, CEO of Ultra, stated that: “We are very pleased to finalize joint venture terms with BGMI. The transaction facilitates the advancement of the Balkans project without increasing shareholder dilution. “
As announced on May 27, 2013, the agreement commenced Phase 2 exploration and geophysical crews have been mobilized to the properties.
On behalf of the Board of Directors
Marc Morin, President & CEO
For further information, please contact:
T: +1-778-968-1176
F: +1-604-909-4682
E: info@ultralithium.com
W: www.ultralithium.com
Or view the Company’s filings at www.sedar.com
Cautionary Statement Regarding “Forward-Looking” Information
Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as “plans”, “expects”, “intends”, “is expected”, “potential”, “suggests” or variations of such words or phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company’s control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
