Canada-based Ultra Lithium has entered into a non-binding letter of intent (LOI) with Beijing Explo-Tech Engineering Co. Ltd. (BETEC) to form a strategic alliance for the exploration of its highly prospective Serbian exploration licenses.
Ultra Lithium management said that the strategic alliance will allow the company to move forward expeditiously, both from a financial and geological perspective with minimal dilution.
BETEC will invest C$750,000 through the purchase of units of securities of Ultra at $0.10 per unit. Each unit will consist of one (1) common share of Ultra and one-half of one (1/2) common share purchase warrant, with each whole warrant entitling BETEC to acquire one (1) additional common share of Ultra at $0.15 per share for period of two (2) years.
BETEC also undertakes and commits to fund up to C$3,500,000 of approved expenditures. Such expenditures will be incurred within a period of three (3) years.
BETEC will earn a five (5%) per cent equity interest in Ultra Balkans d.o.o., Ultra’s wholly-owned Serbian subsidiary, for each C$500,000 of approved expenditures incurred and up to a 35% equity interest once the entire CAD$3,500,000 of qualified expenditures has been incurred.
Ultra Lithium Inc. is a junior explorer. Currently, it holds exploration licenses in Canada, Nevada, the US and Serbia.
Ultra holds 643 sq. km. of lithium/boron mineral exploration licenses in the Republic of Serbia. All 7 exploration concessions are in the same geological belt as Rio Tinto’s Jadar deposit in Serbia. Rio Tinto is completing a $27-million pre-feasibility study. They are projecting production for 2016. Rio Tinto’s Jadar deposit could produce up to 20% of the current worldwide annual lithium demand, according to Ultra.
BETEC provides geological exploration services, research, software development and technology support for the mining industry. Areas of expertise include geological, geophysical, geochemical and remote sensing.