United Lithium Corp. [ULTH-CSE; ULTHF-OTC] signed a letter of intent with Sunstone Metals Ltd., Scandian Metal Pty. Ltd., Scandian Metals AB and Nortec Minerals Corp. contemplating the potential acquisition by the company of 100% of the Kietyonmaki lithium project in Finland.
The Kietyonmaki lithium project, located in the Kietyonmaki lithium prospect, was discovered by the Finnish Geological Survey (GTK) in the mid-1980s. GTK drilled 17 shallow diamond drill holes to test down to 70 metres below surface across three traverses, including one traverse of very shallow holes to locate bedrock. In 2016, six holes drilled by Sunstone intersected lithium mineralization hosted as a spodumene-bearing pegmatite dyke swarm.
Historical drilling results from GTK included 24.25 metres grading 1.31% Li2O in drill hole R310 from 58.75 metres depth; 13 metres of 1.66% Li2O in drill hole R316 from 86.00 metres depth; and 23 metres 1.53% Li2O in drill hole R307 from 14.10 metres depth.
Historical results completed by the property vendors include 42 metres of 1.10% Li2O in drill hole KMDD001 from 17.88 metres depth; 6 metres of 0.90% Li2O in drill hole KMDD002 from 115.14 metres depth; and 9 metres of 0.80% Li2O in dril lhole KMDD006 from 167.00 metres depth.
Surface Channel Sampling highlights by GTK included 16.25 metres of 1.72% Li2O), 115.6 ppm Nb2O5 and 130.2 ppm TaO5 (tantalum); 7.70 metres of 1.21% Li2O, 100.2 ppm Nb2O5 and 111.3 ppm TaO5 and 2.25 metres of 1.10% Li2O, 105.4 ppm Nb2O5 and 163.5 ppm TaO5.
Michael Dehn, President and CEO of ULTH, stated, “It is our strong belief that the demands for lithium in Europe will outpace global supply in the coming years. By identifying potentially higher grade, more advanced lithium projects in Eastern Canada and Europe, United Lithium is positioning to be a key player in supporting the European markets anticipated demand for lithium minerals.”
The parties have agreed to an exclusivity period during which they will negotiate with each other with a view to settling a definitive agreement.