International Lithium to sell its remaining stake in Mariana to Ganfeng
(Kitco News) - International Lithium (TSXV: ILC) announced today that its Board has agreed to sell its remaining 8.58% stake in Litio Miñera Argentina, the company owning the Mariana lithium salar project in Argentina, and also to sell its other rights in the project, including the right to acquire a further 10% in the Mariana project, to Ganfeng Lithium.
The company said that Ganfeng Lithium will purchase the interest for about US$ 13.16 million (approximately CAD$ 16.8 million) payable in cash. Immediately following the sale, the company said it will repay to Ganfeng subsidiary an exploration loan taken by the company in 2014 of US$2.0 million, plus accrued interest at 10% p.a.
The company added that it plans to use part of the US$10 million net sale proceeds from Mariana, as well as part of the proceeds from the recent CAD$ 1 million private placement, to finance the next stages of exploration of the Raleigh Lake lithium and rubidium project in Ontario, Canada. At the same time, the company said it will also look for additional exploration opportunities.
The company's primary strategic focus is now on the Raleigh Lake lithium and rubidium project in Canada and on identifying additional properties.
The Raleigh Lake project now consists of over 17,000 hectares (170 square kilometres) of adjoining mineral claims in Ontario and is regarded by International Lithium management as the company's most significant project in Canada.