Lithium Corporation Signs Letter Of Intent - North Big Smoky Property Nevada

Rhea-AI Summary

Lithium Corporation (OTCQB:LTUM) has staked approximately 3,400 acres in Nevada and signed a Letter of Intent (LOI) with Morella Corporation for an earn-in agreement on the property. Morella can earn a 60% interest by paying $50,000 upon signing and issuing $100,000 in shares annually for four years, alongside increasing exploration expenditures totaling $1.1 million. Should Morella acquire a 100% interest, Lithium Corporation would receive a 2.5% Net Smelter Royalty. The Company, focused on energy storage resources, maintains strong ties with Morella, its largest shareholder.

Positive

• Staked approximately 3,400 acres in Nevada for lithium exploration.
• Entered into a LOI with Morella Corporation for a structured earn-in agreement.
• Potential for substantial exploration funding of $1.1 million over four years.

Negative

• No immediate revenue generation from the property until conditions are met by Morella.
• Dependence on Morella fulfilling financial and exploration commitments.

ELKO, NV / ACCESSWIRE / May 24, 2022 / Lithium Corporation (OTCQB:LTUM) ("LTUM" or "the Company"), a North American company focused on energy metals for the growing energy storage sector and high-tech industries, wishes to inform shareholders it recently staked approximately 3400 acres (1376 hectares), and signed a Letter of Intent with respect to the property with Morella Corporation, our current Fish Lake Valley Optionee.

Over the years Lithium Corporation has conducted geological, geophysical and geochemical investigations in the area of the North Big Smoky claims and is of the opinion it is a geological environment conducive for "Silver Peak" style lithium-in-brine mineralization.

Recently, the Company signed a Letter of Intent (LOI) with Morella Corporation whereby Morella can earn an undivided 60% interest in the property by paying $50,000 US to the Company on the signing of the LOI, and issuing $100,000 worth of Morella shares at the time of signing the formal agreement. Morella must issue $100,000 worth of shares at each anniversary of the signing of the formal agreement over the next four years. Additionally, Morella must incur exploration expenditures of $100,000, $200,000, $300,000 and $400,000 in years one through four of the option agreement. Should they fulfill these obligations they will have earned an undivided 60% interest in the property and may purchase a further 20% interest within 1 year for $750,000, and purchase the remaining 20% interest within the following year for $750,000. Should Morella buy Lithium Corporation's undivided working interest in the property, the Company will revert to a 2.5% Net Smelter Royalty interest, ½ of which would be purchasable by Morella for $1,000,000.

About Lithium Corporation

Lithium Corporation is an exploration company based in Nevada devoted to the exploration for energy storage related resources throughout North America, and looking to capitalize on opportunities within the ever-expanding next generation energy storage markets. The Company has maintained a strategic alliance with Morella Corporation (the Company's single largest shareholder) for the past nine years, and has recently entered into a formal agreement with Morella with respect to an earn-in on the Company's Fish Lake Valley lithium-in-brine prospect in Esmeralda County, Nevada.

Website: www.lithiumcorporation.com.

Contact Info:

Tom Lewis, CEO
Lithium Corporation
775-410-5287
info@lithiumcorporation.com

Notice Regarding Forward-Looking Statements

This current report contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of minerals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Lithium Corporation (OTC-LTUM) 1031 Railroad St. Ste 102B Elko NV 89801 (775) 410-5287 www.lithiumcorporation.com

SOURCE: Lithium Corp.

View source version on accesswire.com:
https://www.accesswire.com/702325/Lithium-Corporation-Signs-Letter-Of-Intent--North-Big-Smoky-Property-Nevada

FAQ

What is Lithium Corporation's latest announcement regarding property staking?

Lithium Corporation has staked approximately 3,400 acres in Nevada and signed an LOI with Morella Corporation for an earn-in agreement.

What are the terms of the LOI with Morella Corporation?

Morella can earn a 60% interest by paying $50,000 and issuing $100,000 in shares for four years, along with increasing exploration expenditures.

How much total exploration funding is required under the LOI with Morella Corporation?

The total exploration funding required under the LOI is $1.1 million over four years.

What will happen if Morella Corporation acquires a full interest in the property?

If Morella acquires a full interest, Lithium Corporation will receive a 2.5% Net Smelter Royalty.

Is Lithium Corporation generating revenue from the new property stake?

No, Lithium Corporation will not generate immediate revenue until Morella fulfills its financial commitments.