United Lithium Increases Ownership of Kietyönmäki Lithium Project in Finland to 100%

Rhea-AI Summary

United Lithium Corp. increases ownership in the Kietyönmäki Lithium Project to 100% after acquiring Tammela Minerals Oy's 16.4% minority interest in Litiumlöydös. The Company paid Nortec $200,000 in cash for the acquisition, removing Tammela's right to royalties. United Lithium has been expanding the Project's land package, with a total Finland portfolio size of 21,070 hectares.

VANCOUVER, British Columbia, April 09, 2024 (GLOBE NEWSWIRE) -- United Lithium Corp. (“United Lithium” or the “Company”) (CSE: ULTH; OTCQX: ULTHF; FWB: 0UL) is pleased to announce that it has increased its ownership in the Kietyönmäki Lithium Project (“Kietyönmäki” or the “Project”) to 100% after acquiring Tammela Minerals Oy’s (“Tammela”) 16.4% minority interest in Litiumlöydös Oy (“Litiumlöydös”), the Finnish entity that holds the rights to the Project (the “Acquisition”). Tammela is a wholly-owned subsidiary of Nortec Minerals Corp. (“Nortec”).

As consideration for the Acquisition, the Company paid Nortec $200,000 in cash, in exchange for 490 common shares of Litiumlöydös from Tammela, representing the 16.4% minority interest. As a condition of closing, all involved parties entered into a Deed of Variation for the purposes of removing Litiumlöydös and United Lithium as parties to a joint venture agreement, extinguishing Tammela’s right to any royalties on any future production at the Project.

United Lithium acquired its interest in Litiumlöydös in early 2022 (see news release dated February 14, 2022) via a transaction with a consortium to purchase 83.6% of the issued and outstanding common shares of Litiumlöydös, which holds a 100% interest in the licenses that comprise Kietyönmäki. Following the completion of this initial transaction, the Company expanded the Project by 535 hectares (“ha”) (see news release September 14, 2022), bringing the total land package to 900 ha. In 2023, United Lithium acquired the new claim reservation over a new parcel located 6.1 km to the southeast of Kietyönmäki, referred to as Salkola, covering 20,170 ha, bringing the total size of the Finland portfolio to 21,070 ha (see news release dated October 12, 2023).

About the Kietyönmäki Lithium Project

Kietyönmäki is located in the Tammela mining region in southern Finland. The region is well-situated as it is close to rail, road and other infrastructure. The Tammela area is one of the best-known lithium-bearing pegmatite regions in Finland. Tammela is in the Häme volcanic belt that comprises volcanic rocks intercalated with minor greywackes and metamorphosed clay-rich sediments units which have been intruded by plutonic rocks and late-tectonic K-granites with associated pegmatite dykes.

Kietyönmäki was discovered by the Finnish Geological Survey (“GTK”) in the mid-1980’s. GTK drilled 17 shallow diamond drill holes testing to 70 meters (“m”) below surface across three traverses, including one traverse of very shallow holes to locate bedrock. In 2016, six holes were drilled by Sunstone Metals Limited which intersected lithium mineralization hosted within a spodumene-bearing pegmatite dyke swarm. Since acquiring the Project, the Company has completed 1,450 m of drilling in 13 holes, primarily testing the lithium-bearing Main dyke.

Drilling highlights to date are:

• 1.53% Li₂O over 23.00 m (hole R307) drilled by GTK¹;
• 1.31% Li₂O over 24.25 m (hole R310) drill by GTK¹;
• 1.44% Li₂O over 24.17 m from 17.88 m downhole (KMDD001) drilled by previous operator²;
• 1.52% Li₂O over 25.95 m from 33.70 m depth downhole (ULDH-3)³ and
• 1.45% Li2O over 29.50 m from 69.1 m depth downhole (ULDH-4)³.
  

The Main Dyke has now been drill-defined to be up to 25 m wide and more than 200 m length and confirmed to extend to at least 160 m depth below surface. This dyke is hosted in an assemblage comprising mica schists, metavolcanics and amphibolite gneiss with rare feldspar porphyry intrusives. Mica schists are altered to chlorite and biotite and commonly contain altered (to chlorite) andalusite and more rarely garnet. There is variable till cover (up to 3 m) and boulder occurrences are present across the Project.

Kietyönmäki has similarities geologically to the Kaustinen region of Finland, which hosts the Keliber Lithium Project (“Keliber”), owned 85% by Sibanye-Stillwater Corp. Keliber hosts an estimated 17 million tonnes at 1.02% Li₂O in its mineral resource estimate, as disclosed in its October 2022 Definitive Feasibility Study⁴. Keliber is currently under construction with a targeted 15,000 tonnes per annum battery grade LiOH production capacity.

_{¹ See Sunstone Metals Limited ASX news release dated September 12, 2016, and United Lithium news release dated October 12, 2023.}

_{² See Sunstone Metals Limited ASX news release dated September 12, 2016.}

_{³ See United Lithium news release dated October 19, 2023.}

_{⁴ Sibanye Stillwater Corp. corporate presentation on the Keliber Lithium Project, November 28, 2022.}

Qualified Person

The scientific and technical information in this news release was reviewed, verified and approved by Isabelle Lépine, M.Sc., P.Geo. Ms. Lépine is a Registered Professional Geologist in British Columbia and a Qualified Person as defined by NI 43- 101 Standards of Disclosure for Minerals Projects. Ms. Lépine is the Director of Mineral Resources of the Company and is not independent of the Company.

On Behalf of The Board of Directors

“Scott Eldridge”

President, Chief Executive Officer and Director 

Telephone: +1-604-428-6128

Email: scott@unitedlithium.com

About United Lithium

United Lithium is an exploration & development company energized by the global demand for lithium. The Company is targeting lithium projects in politically safe jurisdictions with advanced infrastructure that allows for rapid and cost-effective exploration, development, and production opportunities.

The Company’s consolidated financial statements and related management’s discussion and analysis are available on the Company’s website at https://unitedlithium.com or under its profile on SEDAR+ at www.sedarplus.ca.

The Canadian Securities Exchange has not approved nor disapproved the contents of this news release and does not accept responsibility for the adequacy or accuracy of this release.

FAQ

What percentage of the Kietyönmäki Lithium Project does United Lithium Corp. now own?

United Lithium Corp. now owns 100% of the Kietyönmäki Lithium Project after acquiring Tammela Minerals Oy's 16.4% minority interest.

How much did United Lithium Corp. pay for the acquisition of Tammela Minerals Oy's minority interest?

United Lithium Corp. paid Nortec $200,000 in cash for the acquisition of Tammela Minerals Oy's 16.4% minority interest in Litiumlöydös.

What was the total size of the Finland portfolio after United Lithium Corp. acquired the new claim reservation over the parcel called Salkola?

The total size of the Finland portfolio was 21,070 hectares after United Lithium Corp. acquired the new claim reservation over the parcel called Salkola.