VANCOUVER, April 26, 2018 /CNW/ - Leading Edge Materials Corp. ("Leading Edge Materials") or ("the "Company") (TSXV:LEM) (OTCQB: LEMIF) (Nasdaq First North: LEMSE) is pleased to report the initiation of an exploration alliance focused on lithium ion battery materials in Romania. The exploration alliance has highlighted cobalt and lithium opportunities, for which secure tenure is now being sought (the "Exploration Area")
Leading Edge Materials has signed a share purchase agreement (the "Share Purchase Agreement") with an arm's length party under which a local company (the "Partnership Company") has been incorporated in Romania. Under the terms of the Share Purchase Agreement, Leading Edge Materials will hold an initial 51% interest in the Partnership Company and the right to acquire up to 91% interest by making certain payments in shares of Leading Edge Materials (the "LEM Shares"), including an initial payment of 367,006 LEM Shares. Both parties are also working to finalize the terms of a shareholders joint venture agreement (the "Joint Venture Agreement"). Highlights of the Joint Venture Agreement include:
- Payment of 550,509 LEM Shares following the granting of the exploration license within the Exploration Area ;
- Payment of 734,012 LEM Shares on completion of a NI 43-101 resource estimate within the Exploration Area;
- On completion of a positive Pre-Feasibility Study, Leading Edge Materials shall progress to 91% ownership of the Partnership Company, with the payment of 917,515 LEM Shares;
- Leading Edge Materials shall incur all exploration expenditure and shall free carry the local partner to production; and
- A bonus payment of up to 1,835,031 LEM Shares should a historic resource of greater than 40,000 tonnes of contained cobalt at a cobalt equivalent grade greater than 0.75% be identified within the Exploration Area;
- A bonus payment of 2,202,037 LEM Shares should an NI43-101 resource be calculated of greater than 40,000 tonnes of contained cobalt at a cobalt equivalent grade greater than 0.75% within the Exploration Area;
A finder's fee of 5% is applicable and will also be paid in stages and concurrently with the issuance of the LEM Shares under the Joint Venture Agreement.
Blair Way, President and CEO, stated: "Leading Edge Materials has been actively seeking additional opportunities in the battery materials sector, and we are pleased to accelerate this process through the incorporation of a subsidiary with a skilled local partner. We look forward to providing more details as the exploration alliance progresses".
Completion of the transaction is subject to customary conditions for transactions of this nature including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
On behalf of the Board,
Blair Way, President & CEO
The qualified person for the Company's project, Mr. Blair Way B.S. (Geology) M.B.A., a Fellow of the Australasian Institute of Mining and Metallurgy, the Company's President and CEO, has reviewed and verified the contents of this document.
About Leading Edge Materials
Leading Edge Materials was formed with our sights firmly focused on the material demands of a once-in-a-generation revolution, as the world shifts to the efficient production, storage and preservation of low carbon energy. From the lithium batteries in our electric vehicles to our ability to generate energy from the sun, wind and waves LEM is focused on the green energy markets. With a focus on Europe and assets in innovation-rich Scandinavia, Leading Edge Materials is ideally placed to play a pivotal role in the sustainable supply of critical technology materials.
Leading Edge Materials is listed on the TSXV under the symbol "LEM" and Nasdaq First North Stockholm under the symbol "LEMSE". Remium Nordic AB is the Company's Certified Adviser on Nasdaq First North.
This information is information that Leading Edge Materials is required to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the contact person set out above, on April 26, 2018, at 3:45 PM Vancouver Time.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news release.
Forward-Looking Information. This news release may contain forward-looking statements and information based on current expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Such statements include but are not limited to, unexpected geological conditions; the Company's expectations regarding the granting of the tenure surrounding the Exploration Area, exploration activities to advance critical material projects for energy storage markets, delays in obtaining or failure to obtain necessary permits and approvals from government authorities, including the approval of the TSX Venture Exchange with respect to the transaction contemplated under the Share Purchase Agreement and Joint Venture Agreement Although such statements are based on management's reasonable assumptions, there are risk factors which could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
SOURCE Leading Edge Materials
For further information: 1.604.685.9316 or [email protected], www.leadingedgematerials.com