Leading Edge Materials (LEM) has completed the sale of its Bergby Lithium Project to United Lithium (ULTH).
The company sold Bergby Lithium AB, which owns the Bergby Lithium Project located in central Sweden 25 km North of Gavle.
As the owner of the Bergby shares, Leading Edge's wholly-owned subsidiary, Tasman Metals AB, received:
- 1,031,864 United Lithium common shares priced at C$1.01 per share for a total of $1,042,183
- $250,000 in cash
- 400,000 common share purchase warrants, with each warrant entitling Tasman Metals to acquire one United Lithium common share for $0.485 for 36 months from the closing date of the transaction
- A 2 per cent NSR royalty on the project, which United Lithium may buy back for $1 million
- United Lithium will also pay an additional $250,000 in cash on October 29, 2021
United Lithium has committed to spending $1 million on exploration work on the project prior to October 29, 2022.
Leading Edge will, at its cost, make available to United Lithium the part-time services of its Chief Geologist until April 29, 2022.
Filip Kozlowski, CEO of Leading Edge Materials, commented,
"With the completion of the sale of Bergby we now look forward to follow United Lithium as they further explore this exciting project with us sharing any success as shareholders.
On our side, we now remain focused on finishing work together with our consultants on the two ongoing preliminary economic assessment projects and will publish results from those as soon as they are finalized.
Progressing the Norra Karr HREE and Woxna Graphite projects to the next phase of development is in line with our vision to become a leading European supplier of critical raw materials."
United Lithium is an exploration and development company energized by the global demand for lithium.
Leading Edge Materials is focused on developing a portfolio of critical raw material projects in the European Union.
United Lithium (ULTH) is trading flat at $1.01 per share as of 12:35 pm ET.
Leading Edge Materials (LEM) is up by 1.59 per cent and is currently trading at $0.32 per share as of 12:22 pm ET.