United Lithium Corp Enters Into Definitive Agreement for the Acquisition of 83.6% of the Kietyönmäki Lithium Project

Rhea-AI Summary

United Lithium Corp. (CSE: ULTH; OTC: ULTHF) has announced an agreement to acquire 83.6% of Litiumlöydös, a Finnish company holding mining licenses for the Kietyönmäki Lithium project. The acquisition will cost $420,000 in cash and 697,442 common shares valued at $0.6022 each, with restrictions on share release set for four and eight months post-closing. This acquisition aims to enhance United Lithium's portfolio in the lithium sector, but is subject to customary regulatory approvals. The deal replaces a previous letter of intent from May 2021.

Positive

• Acquisition of 83.6% of Litiumlöydös enhances United Lithium's asset base in the lithium sector.
• Kietyönmäki Lithium project offers significant growth potential in a high-demand market.

Negative

• The acquisition is subject to regulatory approvals, introducing uncertainty over completion.
• Share issuance as part of the transaction may lead to shareholder dilution.

VANCOUVER, British Columbia, Dec. 15, 2021 (GLOBE NEWSWIRE) -- United Lithium Corp. (CSE: ULTH; OTC: ULTHF; FWB: 0ULA) (“ULTH” or the “Company”) is pleased to announce that it has entered into a definitive agreement (the “Agreement”) with Sunstone Metals Limited (“Sunstone”), Scandian Metal Pty Ltd., Scandian Metals AB and Litiumlöydös Oy (“Litiumlöydös”) to acquire (the “Acquisition”) 83.6% of the issued and outstanding share capital of Litiumlöydös, a Finland company which holds a 100% interest in and to the mining licenses comprising the Kietyönmäki Lithium project (the “Project”) located in the Kietyönmäki lithium prospect.

The Consideration for the Acquisition is comprised of an aggregate of $420,000 in cash and 697,442 common shares in the capital of ULTH (the “ULTH Shares”).

The ULTH Shares will be issued at a deemed price of $0.6022 per share and subject to an escrow restriction whereby 70% of such ULTH Shares shall be released four (4) months following the closing date of the Acquisition (the “Closing Date”), and the remaining 30% ULTH Shares shall be released eight (8) months following the Closing Date.

Closing of the Acquisition is subject to customary conditions, including receipt of all necessary regulatory and other approvals. The Agreement replaces and supersedes in its entirety the letter of intent previously announced on May 4, 2021.

The Project, located in the Kietyönmäki lithium prospect, was discovered by the Finnish Geological Survey (“GTK”) in the mid-1980’s.

On Behalf of The Board of Directors
Michael Dehn
Chief Executive Officer

Investor Relations
(604) 259-0889
ir@unitedlithium.com

This news release contains "forward-looking information" within the meaning of applicable securities laws relating to statements regarding the Acquisition, and the Company's business and plans, including with respect to undertaking further acquisitions, completing the Acquisition of 83.6% of Litiumlöydös, and carrying out exploration activities in respect of its mineral projects. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance and developments to differ materially from those contemplated by these statements depending on, among other things, the risks that the Acquisition does not complete as contemplated, or at all; that the Company does not complete any further acquisitions; that the Company does not carry out exploration activities in respect of its mineral projects as planned (or at all); and that the Company may not be able to carry out its business plans as expected. Except as required by law, the Company expressly disclaims any obligation and does not intend to update any forward-looking statements or forward-looking information in this news release. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct and makes no reference to profitability based on sales reported. The statements in this news release are made as of the date of this release.

The CSE does not accept responsibility for the adequacy or accuracy of this release

FAQ

What is the purpose of United Lithium's acquisition of Litiumlöydös?

The acquisition aims to enhance United Lithium's portfolio and increase its presence in the lithium market.

What are the financial terms of the acquisition by United Lithium?

United Lithium is paying $420,000 in cash and issuing 697,442 shares at a deemed price of $0.6022 each.

When will the acquisition of Litiumlöydös be finalized?

The acquisition's closing is subject to regulatory approvals and customary conditions.

What impact does the acquisition have on United Lithium's shareholders?

While the acquisition could enhance growth potential, the share issuance may dilute existing shareholders.

What is the Kietyönmäki Lithium project?

The Kietyönmäki Lithium project is located in Finland and consists of mining licenses held by Litiumlöydös.