ORIGINAL: United Lithium Corp Signs Enters into Definitive Agreement for the Acquisition of 100% of the Bergby Lithium Project

VANCOUVER, BC / ACCESSWIRE / February 11, 2021 / United Lithium Corp. (CSE:ULTH)(OTCPINK:ULTHF)(FWB:0UL) (“ULTH” or the “Company”) is pleased to announce, further to its news release dated December 6, 2020, that it has entered into a definitive agreement (the “Agreement“) with Leading Edge Materials (TSX-V: LEM) (“Leading Edge Materials“) and Leading Edge Materials subsidiaries, Tasman Metals AB (“Tasman“), Tasman Metals Ltd. (“Holdco“) and Bergby Lithium AB (“Bergby“), to acquire (the “Acquisition“) 100% of the issued and outstanding share capital of Bergby. Bergby holds a 100% interest in and to the mining licenses comprising the Bergby Lithium project (the “Project“), located in central Sweden, 25km north of Gavle.

Purchase Consideration

On and subject to the conditions set forth in the Agreement, the Company will deliver the following consideration for the Acquisition:

1. payment of $250,000 in cash on the closing date of the Transaction (the “Closing Date“);
2. issuance of 1,031,864 common shares in the capital of ULTH (each, a “ULTH Share“);
3. issuance of 400,000 common share purchase warrants (the “Warrants“) with each Warrant entitling Leading Edge Materials to acquire, for a period of 36 months, one ULTH Share at an exercise price equal to approximately $0.485;
4. payment of an additional $250,000 in cash on the date that is 6 months following the Closing Date;
5. grant to Leading Edge Materials of a 2% net smelter returns royalty on the Project, which shall be subject to a buyback right in favour of ULTH for $1,000,000; and
6. subject to Leading Edge Materials acquiring certain additional mineral claims in the region of the Project prior to March 21, 2021 (the “Bonus Date“), the issuance of such additional number of common share purchase warrants (“Bonus Warrants“) as is equal to $250,000 divided by the 10-day volume-weighted average trading price of the Purchaser Shares on the CSE as of the date immediately preceding the Bonus Date (the “Bonus Price“) with each Bonus Warrant entitling Leading Edge Materials to acquire, for a period of 36 months, one ULTH Share at an exercisable price equal to the Bonus Price.

The Company will also commit to Leading Edge Materials to exercise reasonable commercial efforts toward spending $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 Acquisition 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 Acquisition, Leading Edge Materials will, at its sole cost, make available to the Company 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.

Property Details

The Bergby lithium project, located in central Sweden, 25km north of Gavle, was staked in 2016 and is consists of three exploration permits covering a total of 1903Ha. A prospecting campaign with mapping and sampling was undertaken and identified an extensive lithium-mineralized spodumene pegmatite boulder field and outcrops. The discovery was followed up with two separate drilling campaigns in 2017 totaling 1525m of drilling through 33 drill holes to a maximum depth of 131.1m over an approximate 1500m strike length along intersections of potential lithium mineralization.