Vancouver, British Columbia–(Newsfile Corp. – June 26, 2017) – Lithion Energy Corporation (TSXV: LNC) (the “Company”) is pleased to announce that it has completed the sale of its 80-per-cent equity interest in each of PT Gayo Mineral Resources and PT Linge Mineral Resources, under a share purchase agreement (SPA) with a private Indonesia company.
As per the terms of the SPA (see News Release date March 9th 2017), the private Indonesian company will pay the Company a total of $1-million (U.S.) (equivalent to approximately $1.32 million CAD). The proceeds will be used to finance the Company’s lithium projects (Nevada & Arizona), review additional technology metals properties and to evaluate potential corporate transactions. A finder’s fee of $100,000 (U.S.) is to be paid to an arm’s-length company in association with the transaction.
“Not only did we add significant cash to the balance sheet, the Indonesian subsidiaries held all of the Company’s financial liabilities,” added Shawn Westcott, President and Director. “The sale therefore represents a significant change to Lithion’s balance sheet and will enable the Company to efficiently pursue its growth strategy,”
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward Looking Statements
Certain statements in this News Release, which are not historical in nature, constitute “forward looking statements” within the meaning of that phrase under applicable Canadian securities law. These statements include, but are not limited to, statements or information concerning the use of proceeds from the SPA, the Company’s growth strategy and the Company’s future performance. These statements reflect management’s current assumptions and expectations and by their nature are subject to certain underlying assumptions, known and unknown risks and uncertainties and other factors which may cause actual results, performance or events to be materially different from those expressed or implied by such forward looking statements. Those risks include the interpretation of drill results; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with our expectations; commodity and currency price fluctuation; failure to obtain adequate financing; regulatory, recovery rates, refinery costs, inability to identify or successfully conclude corporate transactions, and other relevant conversion factors, permitting and licensing risks; and general market and mining exploration risks. Forward-looking statements should not be construed as investment advice. Readers should perform a detailed, independent investigation and analysis of the Company and are encouraged to seek independent professional advice before making any investment decision. Accordingly, readers should not place undue reliance on any forward-looking statement. Except as required by applicable securities laws, the Company disclaims any obligation to update or revise any forward looking statements to reflect events or changes in circumstances that occur after the date hereof.
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