United Lithium Corp., a global lithium project developer is delighted to announce the completion of its purchase of 83.6% of the Kietyönmäki lithium project in Finland. Sunstone Metals Limited, Scandian Metal Pty Ltd., Scandian Metals AB, and Litiumlöydös Oy completed the acquisition.
Image Credit: Shutterstock.com/ Sunshine Seeds
Also, the acquisition included the purchase of 83.6% of Litiumlöydös’ issued and outstanding share capital, as well as a wholly-owned interest in and to the mining licenses encompassing the Kietyönmäki lithium project.
Purchase Consideration
As part of the acquisition, the company has (a) paid $420,000 in cash and (b) issued 871,803 common shares in the capital of ULTH at a presumed price of roughly $0.48 per ULTH Share.
The ULTH Shares are collateralized and distributed over an eight-month period, with 70% of the ULTH Shares being issued on June 11th, 2022, and the leftover 30% being released on October 11th, 2022.
Project Details
The Finnish Geological Survey (GTK) identified the Kietyönmäki lithium project in the mid-1980s. GTK performed 17 shallow diamond drill holes in three traverses, such as one trip of very shallow holes to detect bedrock, for evaluating down to 70 m below surface. Sunstone drilled six holes in 2016 that struck lithium mineralization inside a spodumene-bearing pegmatite dyke swarm.
Drill hole R310 from 58.75 m yielded 24.25 m grading 1.31% Li2O; drill hole R316 yielded 13 m grading 1.66% Li2O from 86.00 m; and drill hole R307 yielded 23 m grading 1.53% Li2O from 14.10 m — as per historical results of GTK.
Drill hole KMDD001 from 17.88 m yielded 42 m grading 1.10% Li2O; drill hole KMDD002 yielded 6 m grading 0.90% Li2O from 115.14 m; and drill hole KMDD006 yielded 9 m grading 0.80% Li2O from 167.00 m — as per historical results of Sunstone.
Surface channel sampling by the Finnish Geological Survey included 16.25 m at 1.72% Li2O, 115.6 ppm Nb2O5 and 130.2 ppm Ta2O5; 7.70 m at 1.21% Li2O, 100.2 ppm Nb2O5 and 111.3 ppm Ta2O5 and 2.25 m at 1.10% Li2O, 105.4 ppm Nb2O5 and 163.5 ppm Ta2O5.
Technical Advisor to the Company, Mark Saxon (FAusMM), is a qualified person as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and has prepared or reviewed the scientific and technical information in this press release.