TSX: CLQ; U.S. OTC: CLQMF
TORONTO, Dec. 24, 2013 /CNW Telbec/ - Canada Lithium Corp. ("Canada
Lithium" or the "Company") (TSX: CLQ) (U.S. OTC: CLQMF) announced today
that it has received a bridge loan of $10 million in connection with
the Arrangement Agreement entered with Sirocco Mining Inc. on December
4, 2013. The loan will bear interest of 11% per annum and CLQ will use
the proceeds for operating and capital expenditures in the ordinary
course of its business and for working capital. (Please see the Press
Release "Sirocco and Canada Lithium Combining to Form Strategic
International Competitor in Growth-Oriented Industrial Minerals
Sector", dated December 4, 2013 and available on SEDAR www.sedar.com or the Canada Lithium website www.canadalithium.com).
Canada Lithium has also reached an agreement with its Lenders to
reschedule the principal repayment due December 31, 2013 under its
April 4, 2012 Credit Agreement. This will better align the Company's
loan repayment schedule with the revised production and delivery
schedule for lithium carbonate and its anticipated cash flow. The
Company continues to monitor working capital levels.
About Canada Lithium Corp. revised production
The Company holds a 100% interest in the Québec Lithium Project near Val
d'Or, the geographical heart of the Québec mining industry. It has
completed construction and is in the commissioning phase of an open-pit
mine and on-site processing plant with estimated capacity to produce
approximately 20,000 tonnes of battery-grade lithium carbonate
annually. Metallurgical tests have produced battery-grade lithium
carbonate samples. A five-year off-take agreement for a minimum of
12,000 tonnes per year has been signed with Tewoo-ERDC, one of China's
larger commodities traders. A second off-take for up to 5,000 tonnes
per year has been signed with Marubeni Corp., a major Japanese
commodities trading company. Lithium carbonate is used in lithium-ion
batteries that power consumer electronics (laptops, tablets, etc.),
power-grid storage facilities and electric and hybrid vehicles. For
more information regarding the Company, please refer to the Company's
public filings available at www.sedar.com and www.canadalithium.com including, in particular, the Company's Management's Discussion and
Analysis for the year ended December 31, 2012 and its Annual
Information Form for the year ended December 31, 2012 and the
Management's Discussion and Analysis for the three-month and six-month
periods ended June 30, 2013. The Company trades under the symbol CLQ on
the TSX and on the U.S. OTCQX under the symbol CLQMF.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking information" within the
meaning of Canadian securities legislation. Forward-looking information
is based upon the Company's beliefs, estimates and opinions as at the
date of this press release, which the Company believes are reasonable,
but no assurance can be given that these will prove to be correct.
Furthermore, the Company undertakes no obligation to update or revise
forward-looking information contained herein if these beliefs,
estimates and opinions or other circumstances should change, except as
otherwise required by applicable law.
Forward-looking information relates to future events or to future
conditions, performance or results of operations and reflects current
expectations or beliefs regarding such matters including, but not
limited to, information or statements with respect to the use of
proceeds, in addition to the following: (i) the amount of mineral
resources; (ii) exploration, development and production activities,
including information regarding the potential mineralization and
resources; (iii) the amount of future output over any period; (iv) net
present value and internal rates of return of the mining operation; (v)
assumptions relating to capital costs, operating costs and other cost
metrics; (vi) assumptions relating to gross revenues, operating cash
flow and other revenue metrics; (vii) assumptions relating to future
price and demand for lithium and other macroeconomic metrics; (viii)
exploration and development plans, including anticipated costs and
timing thereof, time frames for completion, and anticipated time to
production; (ix) mine potential and expected mine life; and * sources
of and anticipated financing requirements.
All information other than matters of historical fact may be
forward-looking information. In some cases, forward-looking information
can be identified by the use of words such as "seek", "expect",
"anticipate", "budget", "plan", "project", "estimate", "assume",
"continue", "forecast", "intend", "believe", "predict", "potential",
"target", "strategy", "goal", "may", "could", "would", "might", or
"will" and similar words or phrases (including negative variations)
suggesting future outcomes or statements regarding an outlook.
Forward-looking information is based upon certain assumptions by the
Company or its consultants and other important factors that, if untrue,
could cause the actual results, performances or achievements of the
Company to be materially different from future results, performances or
achievements expressed or implied by such information. Such information
is based on numerous assumptions regarding present and future business
strategies and the environment in which the Company will operate in the
future, including the price of lithium, anticipated costs and ability
to achieve goals. Certain important factors that could cause actual
results, performances or achievements to differ materially from those
in the forward-looking information include, but are not limited to: (i)
required capital investment and estimated workforce requirements; (ii)
estimates of net present value and internal rates of return; (iii)
future demand and market prices for lithium; (iv) receipt of regulatory
approvals on acceptable terms within commonly experienced time frames;
(v) anticipated timelines for the commencement of production; (vi)
anticipated timelines for community consultations and the impact of
those consultations on the regulatory approval process; and (vii)
future exploration plans and objectives.
By its nature, forward-looking information involves known and unknown
risks, uncertainties and other factors which may cause actual results,
performance or achievements, or industry results, to differ materially
from those expressed or implied by such forward-looking information.
Some of the risks and other factors that could cause actual results to
differ materially from those expressed in the forward-looking
information contained in this press release include, but are not
limited to, risks and uncertainties relating to: assumptions regarding
the going concern of the Company, the Company's ability to continue to
satisfy its interest payment obligations under its outstanding
convertible debentures, the ability of the Company to comply with its
financial ratio covenants in its debt facility and to better align its
debt facility repayment obligations with its revised project schedules,
successful and timely commissioning, ramp-up and production at the
Québec Lithium Project in accordance with the project's revised
schedules, the lack of any further significant capital expenditures
during the commissioning stage or to bring the hydrometallurgical
process plant into production, timely lithium carbonate delivery of
acceptable quality to the Company's off-take partners in accordance
with the off-take agreements, the continuing support and cooperation of
the Company's off take partners, and the achievement of breakeven cash
flow as projected, in addition to the following: (i) the interpretation
of drill results, the geology, grade and continuity of mineral deposits
and conclusions of economic evaluations; (ii) results of feasibility
studies, and the possibility that future exploration, development or
mining results will not be consistent with the Company's expectations,
(iii) the outcome of litigation in which the Company is or may in the
future become involved; (iv) risks relating to possible variations in
reserves, grade, planned mining dilution and ore loss, or recovery
rates and changes in project parameters as plans continue to be
refined; (v) mining and development risks, including risks related to
accidents, equipment breakdowns, labor disputes (including work
stoppages and strikes) or other unanticipated difficulties with or
interruptions in exploration and development; (vi) risks related to the
inherent uncertainty of production and cost estimates and the potential
for unexpected costs and expenses; (vii) risks related to future
commodity demand and price and foreign exchange rate fluctuations;
(viii) the uncertainty of profitability based upon the cyclical nature
of the industry in which the Company operates; (ix) risks related to
failure to obtain adequate financing on a timely basis and on
acceptable terms or delays in obtaining governmental approvals or in
the completion of development or construction activities; * risks
related to environmental regulation and liability; (xi) political and
regulatory risks associated with mining and exploration; (xii) risks
related to the uncertain global economic environment; and (xiii) other
risks and uncertainties related to the Company's prospects, properties
and business strategy.
Although the Company has attempted to identify important factors that
could cause actual results or events to differ materially from those
described in the forward-looking information, investors and others are
cautioned that this list is not exhaustive and there may be other
factors that the Company has not identified. Readers are cautioned not
to place undue reliance on forward-looking information contained in
this press release. All forward-looking information contained in this
press release or incorporated by reference herein is expressly
qualified by this cautionary note.
For more information on the risks, uncertainties and assumptions that
could cause the Company's actual results to differ from current
expectations, please refer to the Company's public filings available
at www.sedar.com and www.canadalithium.com including, in particular, the "Risks and Uncertainties" section of the
Company's Management's Discussion and Analysis and the "Risk Factors"
section of the Company's Annual Information Form for the year ended
December 31, 2012 .
SOURCE Canada Lithium Corp.
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