Ultra Lithium Inc. (TSX-V:ULI, OTCQB:ULTXF) announced that the company and Ya Hua International Investment and Development Co Ltd (Yahua) have mutually agreed to terminate Yahua’s equity subscription in Ultra Lithium.
The exploration and development firm said the decision not to proceed with the investment was based on both parties’ assessment of the current international environment and its potential impact on the mine development cycle.
In May 2022, Yahua signed a subscription agreement for 21,276,596 Ultra Lithium units, at a price of C$0.235 per unit, for gross proceeds of C$5 million.
READ: Ultra Lithium updates on drill progress at Forgan Lake and Georgia Lake properties
Ultra Lithium noted that the parties have not completed closing and have agreed to terminate the subscription agreement and mutually release each other from any claims under the terms of the subscription agreement, effective immediately.
Ultra Lithium is well capitalized with more than C$8.8 million in its treasury, according to the company.
As well, the company said its previously-announced Forgan Lake and Georgia Lake drilling program continues, and it is preparing a NI 43-101 report and resource estimate upon receipt of assay results.
Ultra Lithium is an exploration and development company with a focus on the acquisition and development of lithium, gold, and copper assets.
The company holds a brine lithium property in Argentina, hard rock spodumene-type lithium properties at the Georgia Lake/Forgan Lake area in northwestern Ontario, and a brine lithium property in the Big Smoky Valley, Nevada. The company also holds other gold and base metals properties in Argentina.
Contact Sean at sean@proactiveinvestors.com