Leading Edge Materials signs definitive agreement to sell 100% of the Bergby Lithium project

Leading Edge Materials Corp., Vancouver, Canada, (TSXV: LEM) (Nasdaq First North: LEMSE) (OTCQB: LEMIF) has signed a definitive agreement with CSE-listed United Lithium Corp., Vancouver, Canada, (“ULTH”) for the sale of 100% of the Bergby Lithium 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.

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 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.

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).

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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