Vancouver, British Columbia--(Newsfile Corp. - March 31, 2017) - International Lithium Corp. (TSXV: ILC) (the "Company" or "ILC") announces that it will conduct a non-brokered private placement (the "Private Placement") of convertible securities having a face value of up to $250,000 from arms' length and non-arms' length parties (the "Lenders"), including two directors of the Company. The securities will be issued pursuant to a convertible loan bearing interest at the rate of 15% per annum, payable quarterly, with a maturity date of one year from the date of advance. The Lenders may convert at any time, all or a portion of the convertible loan principal into common shares of the Company at a price of $0.14 per common share. The Company has the right to repay the convertible loan, at any time after three months from the date of advance. The convertible loan will be secured by a general security agreement against the Company's assets.
The Private Placement is subject to the approval of the TSX Venture Exchange ("TSXV").
The proceeds of the Private Placement will be used for general working capital purposes. All Private Placement securities will be restricted from trading for a period of four months and one day from the Private Placement closing.
The proposed issuance of Private Placement securities to a non-arms' length party constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") . Because the Company's shares trade only on the TSXV, the issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101. This News Release is being filed less than 21 days before the expected closing of the Private Placement because the Company wishes to complete the Private Placement in a timely manner.
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, totalling 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., a private company registered in Argentina, owned 80% by Ganfeng Lithium Co. Ltd. ("GFL"), and 20% by ILC. 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 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 extensive 50km-long pegmatite belt. The Avalonia project is under option to strategic partner GFL, that currently owns 55% of the project. The Mavis and Raleigh projects are under option to strategic partner Pioneer Resources Limited 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 electronics, 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 in green-tech and to continue to build value for its shareholders.
