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Leading Edge Materials Signs Definitive Agreement to Sell 100% of the Bergby Lithium Project
Vancouver, February 11, 2021 – Leading Edge Materials Corp. (“Leading Edge Materials” or the “Company”) (TSXV: LEM) (Nasdaq First North: LEMSE) (OTCQB: LEMIF) i
About this update from Leading Edge Materials Corp.
[{"type":"text","content":" Vancouver, February 11, 2021 – Leading Edge Materials Corp. (“Leading Edge Materials” or the “Company”) (TSXV: LEM) (Nasdaq First North: LEMSE) (OTCQB: LEMIF) is pleased to announce it has signed a definitive agreement (the “Agreement”) with CSE-listed United Lithium Corp. (“ULTH”) for the sale of 100% (the “Transaction”) of the Bergby Lithium project (the “Project”). The Agreement follows the previously announced signing of a non-binding Letter of Intent contemplating the Transaction (December 6, 2020) and is subject to certain closing conditions which the Company and ULTH will work to finalize. On and subject to the conditions set forth in the Agreement, the Company will receive the following consideration under the Transaction: CAD$250,000 in cash on the closing date of the Transaction (the “Closing Date”); 1,031,864 common shares in the capital of ULTH (each, a “ULTH Share”); 400,000 common share purchase warrants (the “Warrants”) with each Warrant entitling the Company to acquire, for a period of 36 months, one ULTH Share at an exercise price equal to approximately CAD$0.485; an additional $250,000 in cash on the date that is 6 months following the Closing Date; a 2% net smelter returns royalty on the Project, which shall be subject to a buyback right in favour of ULTH for CAD$1,000,000; and subject to the Company acquiring certain additional mineral claims in the region of the Project prior to March 21, 2021 (the “Bonus Date”), receival of such additional number of common share purchase warrants (“Bonus Warrants”) as is equal to CAD$250,000 divided by the 10-day volume weighted average trading price of the ULTH Shares on the CSE as of the date immediately preceding the Bonus Date (the “Bonus Price”) with each Bonus Warrant entitling the Company to acquire, for a period of 36 months, one ULTH Share at an exercisable price equal to the Bonus Price. ULTH will also commit to the Company to exercise reasonable commercial efforts toward spending CAD$1,000,000 on exploration work on the Project within 18 months from the Closing Date. The ULTH Shares to be issued pursuant to the Transaction shall be subject to an escrow restriction whereby 20% of such ULTH Shares shall be released after each subsequent four (4) month period following the Closing Date. Upon completion of the Transaction, the Company, at its sole cost, will make av...