Vancouver, British Columbia, July 12, 2012 - Ultra Lithium (TSXV:ULI) reports that it has closed the first tranche of its previously announced private placement with Beijing Guofang Mining Investment Company (BGMI).
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This shows that with a good project it is still possible to raise financing, and once again it is a Chinese company writing the cheques.
The company issued 10 million units at a price of $0.05 per unit, for gross proceeds of $500,000. BGMI will be subscribing for a second 10 million units at $0.05 for additional gross proceeds of $500,000. There is a full warrant, with an exercise price of $0.10, and a 2 year term, attached to these units.
BGMI has also agreed to fund up to $3.5 million of approved exploration expenditures on the company's Balkans Property in the Republic of Serbia, within a 3 year period. BGMI will earn a 5% equity interest for each $500,000 of approved expenditures incurred, giving them another 35% once the funds have been spent.
Through its wholly-owned local subsidiary, Ultra Lithium has been granted 7 exploration licenses, covering an area of 643 square kilometres, in the Republic of Serbia. The company is seeking to identify potential targets that could host a new Lithium resource in the form of Jadarite, a combination of Lithium and Boron.
Jadarite, officially recognized by the International Mineralogical Association in 2006, can be processed with off the shelf technology.
These Serbian properties are in the same region as Rio Tinto's Jadar deposit.
In 2011, 23% of Lithium was consumed by the battery market. Over the next decade, lithium uses in batteries and electric vehicle markets is expected to grow at close to double-digit rates, pushing demand up to 200%.
Back in North America, the company has two other projects, the ZigZag Lake Project in Ontario, which is a joint venture with Canadian Orebodies, who has drilled widespread Tantalum mineralization, and the South Big Smokey Valley in Nevada, which consists of 364 placer claims covering 7,280 acres. Previous sampling and drilling by the United States Geological Survey, along with other gravity surveys, suggest South Big Smokey Valley area is favourable for hosting mineral rich brines.
The shares currently trade at $0.03 and with 95 million shares outstanding, prior to this financing, is capitalized at $2.9 million.
For more information about Ultra Lithium please visit their website at www.ultralithium.com (http://www.ultralithium.com/)" or contact President & CEO Marc Morin at 604-669-9788 ext 201 or by email mmorin@ultralithium.com (mailto:mmorin@ultralithium.com).
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