TSX: CLQ; U.S. OTC: CLQMF
TORONTO,
Dec. 24, 2013 /CNW Telbec/ - Canada
Lithium Corp. ("Canada Lithium" or
the "Company") (TSX: CLQ) (U.S. OTC: CLQMF) announced today that it
has received a bridge loan of $10
million in connection with the Arrangement Agreement
entered with Sirocco Mining Inc. on December
4, 2013. The loan will bear interest of 11% per annum
and CLQ will use the proceeds for operating and capital
expenditures in the ordinary course of its business and for working
capital. (Please see the Press Release "Sirocco and Canada Lithium
Combining to Form Strategic International Competitor in
Growth-Oriented Industrial Minerals Sector", dated December 4, 2013 and available on SEDAR
www.sedar.com or the Canada Lithium website
www.canadalithium.com).
Canada Lithium has also reached an agreement
with its Lenders to reschedule the principal repayment due
December 31, 2013 under its
April 4, 2012 Credit Agreement. This
will better align the Company's loan repayment schedule with the
revised production and delivery schedule for lithium carbonate and
its anticipated cash flow. The Company continues to monitor working
capital levels.
About Canada Lithium Corp. revised
production
The Company holds a 100% interest in the
Québec Lithium Project near Val
d'Or, the geographical heart of the Québec mining industry.
It has completed construction and is in the commissioning phase of
an open-pit mine and on-site processing plant with estimated
capacity to produce approximately 20,000 tonnes of battery-grade
lithium carbonate annually. Metallurgical tests have produced
battery-grade lithium carbonate samples. A five-year off-take
agreement for a minimum of 12,000 tonnes per year has been signed
with Tewoo-ERDC, one of China's
larger commodities traders. A second off-take for up to 5,000
tonnes per year has been signed with Marubeni Corp., a major
Japanese commodities trading company. Lithium carbonate is used in
lithium-ion batteries that power consumer electronics (laptops,
tablets, etc.), power-grid storage facilities and electric and
hybrid vehicles. For more information regarding the Company, please
refer to the Company's public filings available at www.sedar.com
and www.canadalithium.com including, in particular, the Company's
Management's Discussion and Analysis for the year ended
December 31, 2012 and its Annual
Information Form for the year ended December
31, 2012 and the Management's Discussion and Analysis for
the three-month and six-month periods ended June 30, 2013. The Company trades under the
symbol CLQ on the TSX and on the U.S. OTCQX under the symbol
CLQMF.
Cautionary Statement Regarding
Forward-Looking Information
This press release contains "forward-looking
information" within the meaning of Canadian securities legislation.
Forward-looking information is based upon the Company's beliefs,
estimates and opinions as at the date of this press release, which
the Company believes are reasonable, but no assurance can be given
that these will prove to be correct. Furthermore, the Company
undertakes no obligation to update or revise forward-looking
information contained herein if these beliefs, estimates and
opinions or other circumstances should change, except as otherwise
required by applicable law.
Forward-looking information relates to future
events or to future conditions, performance or results of
operations and reflects current expectations or beliefs regarding
such matters including, but not limited to, information or
statements with respect to the use of proceeds, in addition to the
following: (i) the amount of mineral resources; (ii) exploration,
development and production activities, including information
regarding the potential mineralization and resources; (iii) the
amount of future output over any period; (iv) net present value and
internal rates of return of the mining operation; (v) assumptions
relating to capital costs, operating costs and other cost metrics;
(vi) assumptions relating to gross revenues, operating cash flow
and other revenue metrics; (vii) assumptions relating to future
price and demand for lithium and other macroeconomic metrics;
(viii) exploration and development plans, including anticipated
costs and timing thereof, time frames for completion, and
anticipated time to production; (ix) mine potential and expected
mine life; and * sources of and anticipated financing
requirements.
All information other than matters of historical
fact may be forward-looking information. In some cases,
forward-looking information can be identified by the use of words
such as "seek", "expect", "anticipate", "budget", "plan",
"project", "estimate", "assume", "continue", "forecast", "intend",
"believe", "predict", "potential", "target", "strategy", "goal",
"may", "could", "would", "might", or "will" and similar words or
phrases (including negative variations) suggesting future outcomes
or statements regarding an outlook.
Forward-looking information is based upon
certain assumptions by the Company or its consultants and other
important factors that, if untrue, could cause the actual results,
performances or achievements of the Company to be materially
different from future results, performances or achievements
expressed or implied by such information. Such information is based
on numerous assumptions regarding present and future business
strategies and the environment in which the Company will operate in
the future, including the price of lithium, anticipated costs and
ability to achieve goals. Certain important factors that could
cause actual results, performances or achievements to differ
materially from those in the forward-looking information include,
but are not limited to: (i) required capital investment and
estimated workforce requirements; (ii) estimates of net present
value and internal rates of return; (iii) future demand and market
prices for lithium; (iv) receipt of regulatory approvals on
acceptable terms within commonly experienced time frames; (v)
anticipated timelines for the commencement of production; (vi)
anticipated timelines for community consultations and the impact of
those consultations on the regulatory approval process; and (vii)
future exploration plans and objectives.
By its nature, forward-looking information
involves known and unknown risks, uncertainties and other factors
which may cause actual results, performance or achievements, or
industry results, to differ materially from those expressed or
implied by such forward-looking information. Some of the risks and
other factors that could cause actual results to differ materially
from those expressed in the forward-looking information contained
in this press release include, but are not limited to, risks and
uncertainties relating to: assumptions regarding the going concern
of the Company, the Company's ability to continue to satisfy its
interest payment obligations under its outstanding convertible
debentures, the ability of the Company to comply with its financial
ratio covenants in its debt facility and to better align its debt
facility repayment obligations with its revised project schedules,
successful and timely commissioning, ramp-up and production at the
Québec Lithium Project in accordance with the project's revised
schedules, the lack of any further significant capital expenditures
during the commissioning stage or to bring the hydrometallurgical
process plant into production, timely lithium carbonate delivery of
acceptable quality to the Company's off-take partners in accordance
with the off-take agreements, the continuing support and
cooperation of the Company's off take partners, and the achievement
of breakeven cash flow as projected, in addition to the following:
(i) the interpretation of drill results, the geology, grade and
continuity of mineral deposits and conclusions of economic
evaluations; (ii) results of feasibility studies, and the
possibility that future exploration, development or mining results
will not be consistent with the Company's expectations, (iii) the
outcome of litigation in which the Company is or may in the future
become involved; (iv) risks relating to possible variations in
reserves, grade, planned mining dilution and ore loss, or recovery
rates and changes in project parameters as plans continue to be
refined; (v) mining and development risks, including risks related
to accidents, equipment breakdowns, labor disputes (including work
stoppages and strikes) or other unanticipated difficulties with or
interruptions in exploration and development; (vi) risks related to
the inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses; (vii) risks related to
future commodity demand and price and foreign exchange rate
fluctuations; (viii) the uncertainty of profitability based upon
the cyclical nature of the industry in which the Company operates;
(ix) risks related to failure to obtain adequate financing on a
timely basis and on acceptable terms or delays in obtaining
governmental approvals or in the completion of development or
construction activities; * risks related to environmental
regulation and liability; (xi) political and regulatory risks
associated with mining and exploration; (xii) risks related to the
uncertain global economic environment; and (xiii) other risks and
uncertainties related to the Company's prospects, properties and
business strategy.
Although the Company has attempted to identify
important factors that could cause actual results or events to
differ materially from those described in the forward-looking
information, investors and others are cautioned that this list is
not exhaustive and there may be other factors that the Company has
not identified. Readers are cautioned not to place undue reliance
on forward-looking information contained in this press release. All
forward-looking information contained in this press release or
incorporated by reference herein is expressly qualified by this
cautionary note.
For more information on the risks, uncertainties
and assumptions that could cause the Company's actual results to
differ from current expectations, please refer to the
Company's public filings available at www.sedar.com and
www.canadalithium.com including, in particular, the "Risks and
Uncertainties" section of the Company's Management's Discussion and
Analysis and the "Risk Factors" section of the Company's Annual
Information Form for the year ended December
31, 2012 .
SOURCE Canada Lithium Corp.