ION Announces US$13.5M Joint Venture on Urgakh Naran, Corporate Updates and Update on Rare Earths Transaction
Lithium ION Energy (TSXV: ION) has entered into a binding Joint Venture Agreement with SureFQ for the Urgakh Naran lithium project in Mongolia. Key terms include:
- ION maintains 20% free carried interest through commercial production
- USD$5.5M cash payment to ION over 4.5 years
- USD$8.0M in development expenditure over 4 years
- 2.5% NSR retained by ION in perpetuity
Additionally, ION announced a debt settlement of $120,000 through the issuance of 3,000,000 common shares at $0.04 per share. The company has also terminated its previously announced business combination with United Rare Earths.
Lithium ION Energy (TSXV: ION) ha stipulato un accordo di joint venture vincolante con SureFQ per il progetto litio Urgakh Naran in Mongolia. I termini chiave includono:
- ION mantiene un interesse gratuito del 20% fino alla produzione commerciale
- Pagamento in contante di 5,5 milioni di USD a ION nell'arco di 4,5 anni
- Spesa per lo sviluppo di 8,0 milioni di USD in 4 anni
- 2,5% di royalty netta trattenuta da ION in perpetuo
Inoltre, ION ha annunciato un accordo di liquidazione del debito di 120.000 dollari attraverso l'emissione di 3.000.000 di azioni ordinarie a 0,04 dollari per azione. L'azienda ha anche annullato la sua precedente combinazione aziendale con United Rare Earths.
Lithium ION Energy (TSXV: ION) ha firmado un acuerdo vinculante de joint venture con SureFQ para el proyecto de litio Urgakh Naran en Mongolia. Los términos clave incluyen:
- ION mantiene un interés libre del 20% hasta la producción comercial
- Pago en efectivo de 5,5 millones de USD a ION durante 4,5 años
- Gastos de desarrollo de 8,0 millones de USD en 4 años
- 2,5% de regalías netas retenidas por ION de forma perpetua
Además, ION anunció un acuerdo de liquidación de deuda de 120.000 dólares mediante la emisión de 3.000.000 de acciones comunes a 0,04 dólares por acción. La compañía también ha cancelado su combinación empresarial previamente anunciada con United Rare Earths.
리튬 이온 에너지 (TSXV: ION)는 몽골의 우르가크 나란 리튬 프로젝트에 대해 SureFQ와 구속력 있는 공동 투자 계약을 체결했습니다. 주요 조건은 다음과 같습니다:
- ION은 상업 생산까지 20%의 무료 지분을 유지합니다
- ION에 대한 현금 지급 550만 달러, 4.5년 동안 지급
- 4년 동안 개발 비용 800만 달러
- ION이 영구적으로 보유하는 2.5%의 순수익 로열티
또한 ION은 120,000달러의 부채 정산을 0.04달러의 발행가로 3,000,000주를 발행하여 발표했습니다. 회사는 또한 이전에 발표된 United Rare Earths와의 사업 결합을 종료했습니다.
Lithium ION Energy (TSXV: ION) a conclu un accord de coentreprise contraignant avec SureFQ pour le projet lithium Urgakh Naran en Mongolie. Les termes clés incluent :
- ION conserve un intérêt libre de 20 % jusqu'à la production commerciale
- Paiement en espèces de 5,5 millions USD à ION sur 4,5 ans
- Dépenses de développement de 8,0 millions USD sur 4 ans
- 2,5 % de redevances nettes conservées par ION à perpétuité
De plus, ION a annoncé un règlement de dette de 120 000 dollars par l'émission de 3 000 000 d'actions ordinaires à 0,04 dollar par action. L'entreprise a également mis fin à sa combinaison d'affaires précédemment annoncée avec United Rare Earths.
Lithium ION Energy (TSXV: ION) hat einen verbindlichen Joint-Venture-Vertrag mit SureFQ für das Urgakh Naran Lithium-Projekt in der Mongolei unterzeichnet. Die wichtigsten Bedingungen sind:
- ION behält einen 20% kostenlosen Anteil bis zur kommerziellen Produktion
- Barzahlung von 5,5 Millionen USD an ION über 4,5 Jahre
- Entwicklungsausgaben von 8,0 Millionen USD über 4 Jahre
- 2,5% NSR, die von ION auf unbestimmte Zeit behalten wird
Darüber hinaus gab ION eine Schuldenregelung in Höhe von 120.000 USD durch die Ausgabe von 3.000.000 Stammaktien zu je 0,04 USD bekannt. Das Unternehmen hat auch die zuvor angekündigte Unternehmenszusammenlegung mit United Rare Earths beendet.
- Secured USD$13.5M total investment for Urgakh Naran project
- Maintains 20% free carried interest through commercial production
- Retains 2.5% NSR royalty in perpetuity
- Partnership with proven DLE operator
- Dilution of shareholders through debt settlement at $0.04 per share
- Reduction of ownership stake in Urgakh Naran project to 20%
- Termination of planned United Rare Earths business combination
Toronto, Ontario--(Newsfile Corp. - March 27, 2025) - Lithium ION Energy Limited (TSXV: ION) (FSE: ZA4) ("ION" or the "Company") is pleased to share that it has entered into a binding Joint Venture Agreement with SureFQ Ltd. ("SureFQ") for the advancement of the Urgakh Naran project in Mongolia, in which ION will continue to hold a
Highlights:
- Proven DLE operator looking to deploy modular capacity
- USD
$5.5 in cash considerations to ION over 4.5 years - USD
$8.0M in development expenditure for UN over 4 years - ION to maintain
2.5% NSR in perpetuity
"This milestone is a testament to the ION team's perseverance to deliver upon a strategic partnership that ensures the advancement of our UN asset at a time of historical low Lithium prices; demonstrating a path to production with associated upside that benefits our shareholders. We continue to see Urgakh Naran as an asset with significant potential and are excited to bring on a partner with proven technology that ensures revenue generation expeditiously," said Ali Haji, CEO & Director - Lithium ION Energy Ltd.
"SureFQ is thrilled to support this transformative partnership, which not only accelerates the development of the Urgakh Naran project, but also underscores the resilience and foresight of the ION team. In a challenging lithium market, strategic collaborations like this pave the way for sustainable growth and long-term value creation. We look forward to the positive impact this venture will have on the industry and stakeholders alike," said Hao Qu, CEO - SureFQ.
The Joint Venture agreement was signed effective March 26, 2025. The transaction is expected to close by July 1, 2025, subject to TSXV approval.
Debt Settlement
The Company further announces that it has negotiated debt settlements with certain non-arm's length creditors (the "Debt Settlement"). Pursuant to the Debt Settlement and subject to acceptance by the TSXV, the Company has agreed to settle an aggregate amount of
All securities issued in relation to the Debt Settlement will be subject to a hold period expiring four months and one day after the date of issuance in accordance with applicable securities laws and the policies of the TSXV. Completion of the Debt Settlement remain subject to the receipt of all necessary regulatory approvals, including the approval of the TSXV.
Related Party Transaction
The conversion of debt to shares by insiders will be considered a "related party transaction" pursuant to Multilateral Instrument 61-101- Protection of Minority Security Holders in Special Transactions ("MI 61-101") requiring the Company, in the absence of exemptions, to obtain a formal valuation for, and minority shareholder approval of, the "related party transaction". The Company is relying on an exemption from the formal valuation requirements of MI 61-101 available, because no securities of the Company are listed on specified markets, including the TSX, the New York Stock Exchange, the American Stock Exchange, the NASDAQ or any stock exchange outside of Canada and the United States other than the Alternative Investment Market of the London Stock Exchange or the PLUS markets operated by PLUS Markets Group plc. The Company is also relying on the exemption from minority shareholder approval requirements set out in MI 61-101 as the fair market value of the participation in the Offering by the insiders does not exceed
Update On Contemplated Business Combination
ION also announces that it is no longer pursuing the contemplated business combination transaction with United Rare Earths as previously announced on October 29, 2024. Following a thorough review of the contemplated transaction by the Board, a collective decision was arrived at not to pursue the transaction. The Board continues to evaluate additional Lithium and critical metal projects to align with our strategic objectives.
About Lithium ION Energy Ltd.
Lithium ION Energy Ltd. (TSXV: ION) (FSE: ZA4) is committed to exploring and developing high quality lithium resources in strategic jurisdictions. ION's flagship 65,000+ hectare Baavhai Uul lithium brine project, represents the largest and first lithium brine exploration licence award in Mongolia. ION also holds the 29,000+ hectare Urgakh Naran highly prospective lithium brine licence in Dorngovi Province in Mongolia. With the acquisition of the Bliss Lake and Little Nahani projects in NWT, Canada, ION has enhanced its lithium asset and jurisdiction profile. ION is well-poised to be a key player in the clean energy revolution, positioned well to service the world's increased demand for lithium. Information about the Company is available on its website, www.ionenergy.ca, or under its profile on SEDAR+ at www.sedarplus.ca.
About SureFQ Ltd.
SureFQ is dedicated to advancing innovative and sustainable solutions in the lithium and energy sectors. As a strategic investment and development firm, SureFQ focuses on fostering high-potential projects that drive the global energy transition. Leveraging SureFQ's extensive industry expertise and technological capabilities, SureFQ plays a pivotal role in accelerating lithium resource development and deploying cutting-edge extraction technologies. Through its partnerships and investments, SureFQ is committed to ensuring a stable and efficient supply of critical materials for the clean energy revolution.
For further information:
COMPANY CONTACT: Ali Haji, ali@ionenergy.ca, 647-871-4571
COMPANY CONTACT: Hao Qu, quhao@litioconstante.com
Cautionary Note Regarding Forward-Looking Information
Neither the 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 news release.
Information set forth in this news release contains forward-looking statements. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including with respect to the proposed business combination and the Company's operations after completion thereof, and other words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, statements, including with respect to the entering into of the proposed joint venture with SureFQ and the Company's operations after the completion thereof. Important factors that could cause actual results to differ materially from ION Energy's expectations include, among others, regulatory approvals, the ability to negotiate and implement definitive agreements, uncertainties relating to availability and costs of financing needed in the future, changes in equity markets, risks related to international operations, the actual results of current exploration activities, delays in the development of projects, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of lithium, and the ability to predict or counteract other factors relevant to the Company's business. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/246288
FAQ
What are the financial terms of ION's Urgakh Naran joint venture with SureFQ?
When is the IONGF joint venture agreement expected to close?
How is ION settling its current debt of $120,000?
What happened to ION's planned merger with United Rare Earths?
