Western Lithium Completes Purchase of Royalties and Mineral Property Titles from Western UraniumReno, Nev., USA: Western Lithium USA Corporation ("Western Lithium" or "WLC") (TSX: WLC; OTCQX: WLCDF) and Western Uranium Corporation ("Western Uranium" or "WUC") (TSX-V: WUC; PK: WURNF) are pleased to announce that they have completed the previously announced transaction for the sale, by WUC to WLC, of the royalties and titles constituting substantially all of the Kings Valley mineral property holdings in Nevada for Cdn$6.85 million, paid through the issue to WUC of 5,855,000 WLC common shares.
"This transaction gives Western Lithium a 100% interest in the Kings Valley lithium property," said Jay Chmelauskas, Western Lithium's President. "It provides us with a clean corporate structure to take to potential strategic and financing partners as we move forward in developing our Nevada lithium property."
The transaction results in the transfer of all of the lithium properties out of WUC's portfolio and eliminates the existing lease and royalty arrangements between the two companies on the Kings Valley property, including a Net Smelter Return of 1.5% and Net Profits Royalty of 3.5% on any lithium and related byproducts. Excluding the Albisu gold exploration target and a royalty granted to Cameco Global Exploration II Ltd. solely in respect of uranium, WLC now has full control of the Kings Valley property claim.
As part of the transaction, WUC has agreed to dispose of its common shares in the capital of WLC, in due course, through one or more block trades or off-market transactions until it holds less than 10% of the outstanding WLC shares. Until it completes such disposition, WUC agrees to refrain from voting against management nominees to the WLC board of directors and to not vote against any arm's length third party transaction proposed by WLC's management.
Western Lithium is developing the Kings Valley, Nevada lithium deposit into potentially one of the world's largest(1) strategic, scalable and reliable sources of high qualitylithium carbonate. The Company is positioning itself as a major U.S.-based supplier to support the rising global demand for lithium carbonate that is expected from the increased use of hybrid/electric vehicles.
Western Uranium Corporation is a mineral exploration company with properties in Argentina, Nevada, and New Mexico and an earn-in agreement with Renaissance Gold Inc. (formerly AuEx Ventures, Inc.) for the Baza gold-copper project in Spain. The Company has its head office in Vancouver, Canada.
For further information contact:
Western Lithium USA Corporation
Jay Chmelauskas, President
Western Uranium Corporation
Richard Roy, Investor Relations
Forward Looking Statements
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act, including the proposed disposition of WLC shares by WUC. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including obtaining regulatory approval, and other risks and uncertainties, including those described in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information. Accordingly, readers are advised not to place undue reliance on forward-looking information. The companies do not have a policy of updating forward looking information, except to the extent required by applicable securities laws.
The TSX Venture Exchange has neither approved nor disapproved of the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
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