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International Lithium Reaches Settlement Agreement with Ganfeng Lithium on Mariana JV, Argentina
Vancouver, British Columbia--(Newsfile Corp. - December 28, 2017) - International Lithium Corp...
About this update from Ilc Critical Minerals Limited
[{"type":"text","content":"International Lithium Reaches Settlement Agreement with Ganfeng Lithium on Mariana JV, ArgentinaVancouver, British Columbia--(Newsfile Corp. - December 28, 2017) - International Lithium Corp. (TSXV: ILC) (the \"Company\" or \"ILC\") is pleased to announce a settlement agreement between the Company and its joint venture partner, Mariana Lithium Co. Ltd. ((\"MLC\"), a subsidiary of Jiangxi Ganfeng Lithium Co., Ltd. (\"Ganfeng\")) regarding the Mariana Lithium JV brine project (the \"Mariana JV\") in Salta, Argentina.As it was reported in Company's MD&A, in January 2017, during the transition from the former management of ILC to the current management, it is acknowledged that Ganfeng and MLC considered that ILC failed to meet a cash call in respect of the Mariana JV and that as a result, ILC could have been diluted to a 14.492% share of the project. ILC considered that the cash call notification was made improperly at a time that the relevant officers of ILC involved in preparing the cash call were in transition to becoming employees or consultants of the Mariana JV as consultants to Ganfeng's operations and that ILC's share should therefore have remained at 20%. Neither side accepted the position of the other. ILC and Ganfeng have now reached a settlement agreement on the matter whereby:Outstanding management fee and a settlement amount totaling US$84,706 are to be paid to ILC by MLC;The double dilution for ILC's purported default in meeting the January 2017 cash call, resulting in an ownership percentage of 14.492% for ILC, is to be calculated as a single dilution amount resulting in an ownership of 17.246% in the Mariana project for ILC;ILC will maintain its status as having zero defaults as defined in the joint venture agreement;ILC will pay to MLC US$206,294 which is the difference of its underpayment of the cash calls up to and including the November 28, 2017 cash call paid, representing cash calls at the 14.492% level now revised to 17.246%; andUS$15,698 to be paid to ILC by MLC for various project-related costs.In accordance with the settlement agreement, MLC and ILC agree to act in good faith and in the best interests of the Mariana JV. Both ILC and MLC and, where appropriate, their subsidiaries and/or parents and/or affiliates will in good faith review the Mariana Joint Venture Agreement in the first quarter of 2018 w...